External validity of prospect theory: The evidence from soccer betting

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

External validity of prospect theory: The evidence from soccer betting

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

External validity of prospect theory: The evidence from soccer betting

Popis výsledku anglicky

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.

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Journal of Behavioral and Experimental Economics

ISSN

2214-8043

e-ISSN

—

Svazek periodika

65

Číslo periodika v rámci svazku

5

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

7

Strana od-do

121-127

Kód UT WoS článku

000390511900014

EID výsledku v databázi Scopus

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