External validity of prospect theory: The evidence from soccer betting

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F16%3A00091978" target="_blank" >RIV/00216224:14560/16:00091978 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1016/j.socec.2016.07.005" target="_blank" >http://dx.doi.org/10.1016/j.socec.2016.07.005</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.socec.2016.07.005" target="_blank" >10.1016/j.socec.2016.07.005</a>

Result language
angličtina
Original language name
External validity of prospect theory: The evidence from soccer betting
Original language description
This paper tests whether the prospect theory parameters estimated from laboratory experiments correspond to estimates from real-life betting markets. Using Czech soccer betting data, we estimate the functional forms of the value and probability weighting functions commonly used for the experimental validation of prospect theory. In line with the experimental evidence, we find that bettors are risk averse in the domain of gains and risk seeking in the domain of losses and tend to overweight small probabilities and underweight medium and large probabilities. On the other hand, our findings suggest that bettors do not exhibit loss aversion. This might be at least partly explained by recent experimental evidence suggesting that loss aversion is weaker or absent if the decision-makers are experienced, if they face similar choices repeatedly, and if the decisions are made in a context where offers are usually accepted.
Czech name
—
Czech description
—

Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
—

Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Similar results(10)