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Some implications of common consequences in lotteries

Abstract : This work studies the implications of some aspects of preferences toward risk in the choice between two binary lotteries exhibiting a common consequence. The results obtained are then applied to two different problems: the choice between two risky challenges characterized by different rewards in the case of success and different probabilities of success and the choice between self-protection and self-insurance in the presence of the risk of incurring financial loss.
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Submitted on : Monday, March 9, 2020 - 3:24:50 PM
Last modification on : Wednesday, September 30, 2020 - 3:19:06 AM




David Crainich, Louis Eeckhoudt, Mario Menegatti. Some implications of common consequences in lotteries. Journal of Risk and Uncertainty, Springer Verlag, 2019, 59, pp.185-202. ⟨10.1007/s11166-019-09314-4⟩. ⟨hal-02502811⟩



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