Explanation Of Gambling Research Articles

Skewness as an explanation of gambling in cumulative prospect theory

Skewness of return has been suggested as a reason why agents might choose to gamble, ceteris paribus, in cumulative prospect theory (CPT). We investigate the relationship between moments of return in two models where agents choices over uncertain outcomes are determined as in CPT. We illustrate via examples that in CPT theory, as with expected utility theory, propositions that agents have a preference for skewness may be invalid.

Skewness as an explanation of gambling by locally risk averse agents

Within the expected utility framework skewness of return has been suggested as a rationale for why risk averse gamblers might choose to gamble when expected returns are negative. The argument is that risk-averse agents desire positive skewness, ceteris paribus, and are prepared to trade off a lower mean return for more skewness. This article demonstrates with a counter example that this argument is, in general, erroneous.

Behaviorism and Public Policy: B. F. Skinner’s Views on Gambling

The spread, regulation, and social side effects of gambling are major public policy issues. Although not presented systematically, extensive remarks about the nature of gambling appear in the works of B. F. Skinner. These are explicated in two broad categories: Skinner’s explanation of gambling, and his argument(s) against gambling.