(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 …

Evidence from hypothetical scenarios strongly suggests the existence of a sunk cost bias, the tendency to ‘throw good … psychological channels underlying such a bias is scarce. We present a laboratory experiment designed to investigate the sunk cost … bias and to test some prominent psychological mechanisms. Inspired by the hypothetical scenarios, we use a two …