Modeling Preference Heterogeneity Within and Across Behavioral Types: Evidence from a Real-world Betting Market

Angie Andrikogiannopoulou, Filippos Papakonstantinou
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引用次数: 24

Abstract

While it is commonly accepted that risk preferences differ across individuals, studies that estimate them typically allow for limited heterogeneity. We develop a methodology that allows for richer representation of heterogeneity both within and across utility types characterized by different behavioral features. This enables us to improve individual- and population-level estimates, and to assess the relative importance of loss aversion and probability weighting, and their prevalence in the population. Applying our model to individual sports-betting choices, we find that utility curvature alone does not explain observed choices and, while two-thirds of individuals exhibit loss aversion, all exhibit probability weighting.
行为类型内部和跨行为类型的偏好异质性建模:来自现实世界博彩市场的证据
虽然人们普遍认为个体的风险偏好不同,但估计它们的研究通常允许有限的异质性。我们开发了一种方法,可以更丰富地表示由不同行为特征表征的效用类型内部和之间的异质性。这使我们能够改进个人和群体水平的估计,并评估损失厌恶和概率加权的相对重要性,以及它们在人群中的流行程度。将我们的模型应用于个人体育博彩选择,我们发现效用曲率本身并不能解释观察到的选择,而且,虽然三分之二的个人表现出损失厌恶,但所有人都表现出概率加权。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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