Do risk-averse lottery players become risk-seeking lottery winners?

Please use this identifier to cite or link to this item: http://dspace.lib.uom.gr/handle/2159/13645

Author:	Kyritsis, Ioannis Papachristou, George
Title:	Do risk-averse lottery players become risk-seeking lottery winners?
Date Issued:	2006
Publisher:	University of Macedonia, Economic and Social Sciences
Abstract:	Models of rational lottery play assume that lottery winners are risk-seekers. Models of skewness preference are not an exception to this. Skewness preference is not, in general, sufficient to make risk-averse individuals play, if one does not assume a risk-seeking attitude at windfall gains. In light of the anecdotal evidence on lottery winners remaining risk-averse, we fear that a consistent theory of rational betting may only have a limited domain of application: that of lottery losers.
Keywords:	Expected utility Lotteries Risk aversion Skewness preference
Related Identifiers:	http://dspace.lib.uom.gr/handle/2159/13657
Appears in Collections:	Festschrift in honour of Maria Negreponti-Delivanis

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