000 01584cam a2200253 4500500
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041 _afre
042 _adc
100 1 0 _aCharpin, Ariane
_eauthor
245 0 0 _aTesting models of decision under risk
260 _c2018.
500 _a69
520 _aOne of the most robust findings in the literature using data on horseraces bets is that odds associated to horses reflect their chances of winning very well, with the exception that favorites are underbet while outsiders are overbet. Expected utility theory and behavioral theories of decision under risk compete to explain this finding. This paper seeks to discriminate between the two classes of models by testing which is the most suited to explaining the behavior of bettors observed in the data. Using a unique dataset of bets on horseraces in France, I find that behavioral theories of decision under risk better fit my data than expected utility. This result shows that behavioral theories provide a better representation of choice behavior than expected utility. Classification JEL : D81, L83.
690 _adecision making
690 _arepresentative bettor
690 _arank-dependent utility
690 _arisk-aversion
690 _acumulative prospect theory
690 _aprobability weighting function
690 _aexpected utility
690 _afavorite-longshot bias
786 0 _nRevue économique | 69 | 5 | 2018-09-06 | p. 779-803 | 0035-2764
856 4 1 _uhttps://shs.cairn.info/journal-revue-economique-2018-5-page-779?lang=en&redirect-ssocas=7080
999 _c546308
_d546308