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We develop a numerically implementable method to solve this problem in a general setting, allowing for general time-consistent ambiguity-averse preferences. Kwang, ng yew (1965). “why do people buy lottery tickets? choices involving risk and the indivisibility of expenditure. ” in: journal of. We found that loss aversion is significantly lessened among people. Both risk and time preferences matter for the intervention’s success. Gamblers “gamble” more when their savings is linked to contests. Keywords: expected utility, risk aversion, st. Petersburg paradox, decisions under uncertainty, option theory. Jel codes: c91, c93, d11,. The cross-section of options better than the standard model (schreindorfer, 2014). This paper studies the optimal risk-averse timing to sell a risky asset While it certainly has its issues, Big Fish Casino is both an ambitious project and a godsend to gambling fans, risk aversion indivisible timing options and gambling.
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