Are gamblers really risk takers

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Show simple item record Bird, R Mccrae, M Beggs, J 2011-02-07T06:26:06Z 1987-01
dc.identifier.citation Australian Economic Papers, 1987, 26 (49), pp. 237 - 253
dc.identifier.issn 0004-900X
dc.identifier.other C1UNSUBMIT en_US
dc.description.abstract This paper examines the attitudes of gamblers to risk as displayed by their betting behaviour on horse races. Although traditional economic theory assumes that individuals are averse to risk, numerous authors (e.g. Ali 1977; Asch, Malkiel and Quandt 1982; Snyder 1978 and Weitzman 1965) have produced empirical evidence to suggest that gamblers are in fact risk takers. This paper presents empirical evidence not inconsistent with these previous findings but proceeds to put a different interpretation on the results. In particular, we extend the traditional two moment utility model to include skewness. Arditti and others (Arditti 1967, 1971) have suggested that well-informed risk-averse equity investors should prefer positively skewed return distributions. Although the importance of positive skewness to these investors has been questioned (Francis 1975), we find that it is a characteristic that is strongly favoured by those who gamble on race horses. However, the introduction of skewness cannot alone explain another trait of these gamblers their willingness to participate m an activity which promises a negative return. In Section II we describe the data collection procedures and the method used in this study. The results reported in Section III are consistent with those in previous studies which concluded that gamblers are risk-takers. In Section IV the discussion of these results is extended to include skewness. The issue of why gamblers participate in a negative return activity is addressed in Section V. We conclude with a brief summary of our principal findings.
dc.format Yes
dc.publisher Australian Economic Papers
dc.title Are gamblers really risk takers
dc.type Journal Article
dc.parent Australian Economic Papers
dc.journal.volume 49
dc.journal.volume 26
dc.journal.number 49 en_US
dc.publocation Adelaide en_US
dc.identifier.startpage 237 en_US
dc.identifier.endpage 253 en_US BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.for 1402 Applied Economics
dc.personcode 981118
dc.percentage 100 en_US Applied Economics en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US en_US
dc.location.activity ISI:A1987N166200007 en_US
dc.description.keywords NA en_US
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/Finance
pubs.organisational-group /University of Technology Sydney/Strength - Quantitative Finance
utslib.copyright.status Closed Access 2015-04-15 12:17:09.805752+10
utslib.collection.history Closed (ID: 3)

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