Optimal lottery
type: Item
instance of: scholarly article
title: Optimal lottery
zbMATH Open document ID: 1368.91089
author: Charles Dennery
author: Alexis Direr
published in: Journal of Mathematical Economics
publication date: 2014-12-03T00:00:00Z
full work available at URL: https://zenodo.org/record/1005085
review text: Lotteries are considered that belong to the set of Pareto equilibria between a firm and a consumer with rank-dependent utility (RDU). It is shown that the continuity of the lotteries is necessary for their compatibility with RDU, and that under realistic assumptions the optimal prize structure follows a power law distribution. The theoretical results are discussed in the context of real lotteries.
reviewed by: Antanas Žilinskas
Mathematics Subject Classification ID: 91B16
Mathematics Subject Classification ID: 91B06
zbMATH DE Number: 6376373
zbMATH Keywords: lotteries
zbMATH Keywords: rational decision theory
zbMATH Keywords: firm behavior
MaRDI profile type: Publication
OpenAlex ID: W4236996411
cites work: Parameter-Free Elicitation of Utility and Probability Weighting Functions
cites work: A tractable method to measure utility and loss aversion under prospect theory
cites work: Separating curvature and elevation: a parametric probability weighting function
cites work: OPTIMAL INSURANCE DESIGN UNDER RANK‐DEPENDENT EXPECTED UTILITY
cites work: Violations of the betweenness axiom and nonlinearity in probability
cites work: Optimal risk-sharing rules and equilibria with Choquet-expected-utility.
cites work: Two-persons efficient risk-sharing and equilibria for concave law-invariant utilities
cites work: Parametric weighting functions
cites work: On the intuition of rank-dependent utility
cites work: Is probability weighting sensitive to the magnitude of consequences? An experimental investigation on losses
cites work: Measuring the utility of losses by means of the tradeoff method
cites work: Gamblers favor skewness, not risk: Further evidence from United States' lottery games
cites work: Statistical Size Distributions in Economics and Actuarial Sciences
cites work: Curvature of the Probability Weighting Function
DOI: 10.1016/J.JMATECO.2014.09.011
description: scientific article; zbMATH DE number 6376373