Can Expected Utility Theory Explain Gambling System

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Expected Utility Theory Psychology

A prospect theory model of casino gambling, our paper suggests that this activity is not necessarily an isolated phenomenon requiring its own unique explanation, but rather one of a family of facts that can be understood using a single model of decision under risk. The idea that prospect theory might explain casino gambling is initially surprising. An explanation of optimal each-way bets based on non-expected utility theory The purpose in this paper is to demonstrate how the non-expected utility models of Markowitz and Kahneman and Tversky can explain why an agent, chooses to bet each way on a horse. Theory model of casino gambling, our paper sugge