About this document
Prospect Theory in Casino Gambling Model by Yiğit Alp Aksüt is a document available to read on EtoBox.
The document summarizes a model of casino gambling based on cumulative prospect theory. The model shows that under prospect theory, agents may be willing to gamble even with bets that have zero or negative expected value due to probability weighting. Naive agents who are unaware of time inconsistency from probability weighting plan to stay longer when winning but leave early when losing. However, their actual behavior once in the casino is the opposite - they continue gambling as long as possible when losin
- Author
- Yiğit Alp Aksüt
- Language
- EN