scholarly journals ON THE ROBUSTNESS OF HIGHER ORDER RISK PREFERENCES

2017 ◽  
Vol 85 (2) ◽  
pp. 313-333 ◽  
Author(s):  
Cary Deck ◽  
Harris Schlesinger
Keyword(s):  
Risk Preferences ◽  
Higher Order

Higher Order Risk Preferences in the Koszegi-Rabin

2021 ◽  
Author(s):  
Konstantinos Georgalos ◽  
Ivan Paya ◽  
David Alan Peel
Keyword(s):  
Risk Preferences ◽  
Higher Order

scholarly journals Higher-order risk preferences in social settings

2017 ◽  
Vol 21 (2) ◽  
pp. 434-456 ◽  
Author(s):  
Timo Heinrich ◽  
Thomas Mayrhofer
Keyword(s):  
Risk Preferences ◽  
Higher Order ◽  
Social Settings

scholarly journals Moment characterization of higher-order risk preferences

2012 ◽  
Vol 74 (2) ◽  
pp. 267-284 ◽  
Author(s):  
Sebastian Ebert
Keyword(s):  
Risk Preferences ◽  
Higher Order

scholarly journals Consistency of Higher Order Risk Preferences

2012 ◽  
Author(s):  
Cary A. Deck ◽  
Harris Schlesinger
Keyword(s):  
Risk Preferences ◽  
Higher Order

Higher Order Risk Preferences in the Koszegi-Rabin

2021 ◽  
Author(s):  
Konstantinos Georgalos ◽  
Ivan Paya ◽  
David Alan Peel
Keyword(s):  
Risk Preferences ◽  
Higher Order

Inferring Risk Preferences Using Synthetic Win Bets in Horse Betting “Exotic” Markets

2013 ◽  
Vol 2 (1) ◽  
pp. 1-29
Author(s):  
Philip O'Connor
Keyword(s):  
Relative Risk ◽  
Standard Deviation ◽  
Risk Aversion ◽  
Financial Markets ◽  
Utility Function ◽  
Utility Theory ◽  
Risk Preferences ◽  
Higher Order ◽  
Relative Risk Aversion ◽  
Higher Order Moments

Exotic bets: exactas, trifectas and superfectas are complicated gambles that depend on the ordering of horse in a race that can be studied by converting them into “synthetic” or “virtual” win bets. Using two ways of constructing synthetic win bets, it is shown that the favorite-longshot bias is a poor description of the returns of the trifecta and superfecta synthetic win bet. Rather, consistent with financial markets, the standard deviation of the payout of the synthetic win bet better describes the different returns of synthetic win bets.It is found that the synthetic win market dislikes standard deviation and kurtosis (and other higher-order even moments) and likes skewness (and other higher order odd moments), implying participants conform to standard utility theory in their choice between win and synthetic win bets and are not risk-loving. A co-efficient of relative risk aversion of about 3 is estimated. Including higher-order moments strongly affects the magnitude of utility function estimates.

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