On correlated lotteries in economic applications
Economic models and experiments frequently use lotteries with only a few outcomes. We study the correlation of such lotteries and discuss its relevance for economic applications. In particular, we fully characterize the joint distribution of two binary lotteries via their first three univariate mome...
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| Hauptverfasser: | , , |
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| Dokumenttyp: | Article (Journal) |
| Sprache: | Englisch |
| Veröffentlicht: |
November 2023
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| In: |
Journal of economic behavior & organization
Year: 2023, Jahrgang: 215, Pages: 292-306 |
| ISSN: | 1879-1751 |
| DOI: | 10.1016/j.jebo.2023.08.025 |
| Online-Zugang: | Verlag, kostenfrei, Volltext: https://doi.org/10.1016/j.jebo.2023.08.025 Verlag, lizenzpflichtig, Volltext: https://www.sciencedirect.com/science/article/pii/S0167268123003153 
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| Verfasserangaben: | Markus Dertwinkel-Kalt, Sebastian Ebert, Mats Köster |
| Zusammenfassung: | Economic models and experiments frequently use lotteries with only a few outcomes. We study the correlation of such lotteries and discuss its relevance for economic applications. In particular, we fully characterize the joint distribution of two binary lotteries via their first three univariate moments and their correlation coefficient. As we illustrate alongside several examples, the resulting parametrization may be useful for economic modeling and experimental design. |
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| Beschreibung: | Online verfügbar: 27. September 2023 Gesehen am 20.12.2023 |
| Beschreibung: | Online Resource |
| ISSN: | 1879-1751 |
| DOI: | 10.1016/j.jebo.2023.08.025 |