000			02726cam a22003737 4500
001			w15923
003			NBER
005			20211020111221.0
006			m o d
007			cr cnu||||||||
008			210910s2010 mau fo 000 0 eng d
100	1		_aSnowberg, Erik. _927679
245	1	0	_aExplaining the Favorite-Longshot Bias: _bIs it Risk-Love or Misperceptions? / _cErik Snowberg, Justin Wolfers.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2010.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w15923
500			_aApril 2010.
520	3		_aThe favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates of the probability of a horse winning--longshots are overbet, while favorites are underbet. Neoclassical explanations of this phenomenon focus on rational gamblers who overbet longshots due to risk-love. The competing behavioral explanations emphasize the role of misperceptions of probabilities. We provide novel empirical tests that can discriminate between these competing theories by assessing whether the models that explain gamblers' choices in one part of their choice set (betting to win) can also rationalize decisions over a wider choice set, including compound bets in the exacta, quinella or trifecta pools. Using a new, large-scale dataset ideally suited to implement these tests we find evidence in favor of the view that misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aD03 - Behavioral Microeconomics: Underlying Principles _2Journal of Economic Literature class.
690		7	_aD49 - Other _2Journal of Economic Literature class.
690		7	_aG13 - Contingent Pricing • Futures Pricing _2Journal of Economic Literature class.
690		7	_aG14 - Information and Market Efficiency • Event Studies • Insider Trading _2Journal of Economic Literature class.
690		7	_aL83 - Sports • Gambling • Restaurants • Recreation • Tourism _2Journal of Economic Literature class.
700	1		_aWolfers, Justin. _922962
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w15923.
856	4	0	_uhttps://www.nber.org/papers/w15923
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w15923
942			_2ddc _cW-PAPER
999			_c332199 _d290761