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On correlated lotteries in economic applications

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Economic models and experiments frequently use lotteries with only a few outcomes. We provide a comprehensive analysis of the correlation between such lotteries as well as their dependence structure more generally. We fully characterize the joint distribution of two binary lotteries via their first...

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Bibliographic Details
Main Authors: Dertwinkel-Kalt, Markus (Author) , Ebert, Sebastian (Author) , Köster, Mats (Author)
Format: Article (Journal) Book/Monograph
Language:English
Published: [S.l.] SSRN October 11, 2022
DOI:10.2139/ssrn.3986161
Online Access:Verlag, kostenfrei: https://ssrn.com/abstract=3986161
Resolving-System, kostenfrei: https://doi.org/10.2139/ssrn.3986161
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Author Notes:Markus Dertwinkel-Kalt, Sebastian Ebert, Mats Köster
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Summary:Economic models and experiments frequently use lotteries with only a few outcomes. We provide a comprehensive analysis of the correlation between such lotteries as well as their dependence structure more generally. We fully characterize the joint distribution of two binary lotteries via their first three univariate moments and their correlation coefficient. As we illustrate alongside some examples, the resulting parametrization may be useful for economic modeling and experimental design
Item Description:Gesehen am 20.03.2023
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 3, 2022 erstellt
Physical Description:Online Resource
DOI:10.2139/ssrn.3986161
Access:Open Access

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