eprintid: 15789
rev_number: 16
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/01/57/89
datestamp: 2014-07-09 17:40:32
lastmod: 2021-04-02 15:48:24
status_changed: 2018-11-19 15:44:11
type: monograph
metadata_visibility: no_search
creators_name: Chiappori, Pierre-André
creators_name: Gandhi, Amit
creators_name: Salanié, Bernard
creators_name: Salanié, François
creators_idrefppn: 031614590
creators_idrefppn: 033584133
creators_idrefppn: 03504649X
title: From Aggregate Betting Data to Individual Risk Preferences
ispublished: pub
subjects: subjects_ECO
abstract: As a textbook model of contingent markets, horse races are an attractive environment to study the attitudes towards risk of bettors. We innovate on the literature by explicitly considering heterogeneous bettors and allowing for very general risk preferences, including non-expected utility. We build on a standard single-crossing condition on preferences to derive testable implications; and we show how parimutuel data allow us to uniquely identify the distribution of preferences among the population of bettors. We then estimate the model on data from US races. Within the expected utility class, the most usual specifications (CARA and CRRA) fit the data very badly. Our results show evidence for both heterogeneity and nonlinear probability weighting.
date: 2012-10
date_type: published
publisher: TSE Working Paper
official_url: http://tse-fr.eu/pub/27789
faculty: tse
divisions: tse
language: en
has_fulltext: TRUE
view_date_year: 2012
full_text_status: public
monograph_type: working_paper
series: TSE Working Paper
volume: 13-453
place_of_pub: Toulouse
pages: 53
institution: Université Toulouse 1 Capitole
department: Toulouse School of Economics
book_title: TSE Working Paper
oai_identifier: oai:tse-fr.eu:27789
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oai_lastmod: 2018-11-06T16:06:22Z
oai_set: tse
oai_set: ut1c
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citation:   Chiappori, Pierre-André <https://www.idref.fr/031614590>, Gandhi, Amit, Salanié, Bernard <https://www.idref.fr/033584133> and Salanié, François <https://www.idref.fr/03504649X>  (2012) From Aggregate Betting Data to Individual Risk Preferences.  TSE Working Paper, n. 13-453, Toulouse     
document_url: https://publications.ut-capitole.fr/id/eprint/15789/1/wp_tse_453.pdf