Betting market equilibrium with heterogeneous beliefs: a prospect theory-based model

DOI10.1016/j.ejor.2021.05.024zbMath1490.91130OpenAlexW3165192701MaRDI QIDQ2076920

Tongyao Wang, Dian Yu, Jian-Jun Gao

Publication date: 22 February 2022

Published in: European Journal of Operational Research (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.ejor.2021.05.024

zbMATH Keywords

prospect theoryforecastingbelief aggregationequilibrium pricebetting market

Mathematics Subject Classification ID

Utility theory (91B16) Special types of economic markets (including Cournot, Bertrand) (91B54)

Cites Work

• Estimating risk preferences of bettors with different bet sizes
• It takes all sorts: a heterogeneous agent explanation for prediction market mispricing
• Estimating cumulative prospect theory parameters from an international survey
• Portfolio Choice Under Cumulative Prospect Theory: An Analytical Treatment
• The Probability Weighting Function
• Does Belief Heterogeneity Explain Asset Prices: The Case of the Longshot Bias
• Kurtosis as Peakedness, 1905–2014.R.I.P.
• Unnamed Item

This page was built for publication: Betting market equilibrium with heterogeneous beliefs: a prospect theory-based model