(the favorite-longshot bias). I build a game theoretical model and show that the favorite-longshot bias is the equilibrium … play of the players with loss aversion, and that the degree of the favorite-longshot bias depends on the mental accounting … process the players use. -- loss aversion ; mental accounting ; parimutuel betting ; the favorite-longshot bias …

overconfidence, egocentrism, and the mythical fixed pie illusion oftentimes foreclose profitable results. A further cognitive bias is …

We examine generational differences in risk-taking behavior by means of a laboratory experiment with monetary …, probability weightings and reference point adoption of elderly and young groups. The results of our experiment indicate that the …

heuristic - a cognitive bias, where people's perception of a risk is based on its vividness and emotional impact rather than on …