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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
Risk aversion
Skewness preference
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Appears in Collections:Festschrift in honour of Maria Negreponti-Delivanis

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