Risk tolerance is widely used in the personal financial planning referring to an investor’s attitude towards risk. It is the amount of uncertainty or investment return volatility that an investor is willing to accept when making a financial decision. Risk tolerance scores are used (1) to examine the relationship between demographic characteristics and risk tolerance, and (2) to investigate the ...

The paper studies a model in which in period 1, a decision-maker chooses a set of lotteries; and in period 2, Nature chooses a lottery from the set chosen by the decision-maker and the decision-maker consumes the lottery chosen by Nature. Larger sets are interpreted as representing more ambiguous objective information about the lottery that will be consumed. The axioms imposed on preferences ov...

This paper considers whether lottery betting is best explained by risk-love or an alternative to the expected utility model, namely, the overweighting of small odds. To the best of our knowledge, we are the first to use the common setting of state lottery betting to investigate the fit of expected utility theory against an alternative model of non-linear probability weighting. Our results show ...

A manifesto, signed by a number of Bishops and by the presidents of several religious bodies, has been issued condemning charity lotteries, and particularly lotteries for hospitals. The i sasons given why the Churches "feel that the lottery method for hospitals and philanthropic purposes is a retrograde step"' are that the appeal of the lottery is to the possibility of gain for self?an appeal d...

April 2008 Abstract This paper presents an axiomatic model of probabilistic choice under risk. In this model, when it comes to choosing one lottery over another, each alternative has a chance of being selected, unless one lottery stochastically dominates the other. An individual behaves as if he compares lotteries to a reference lottery—a least upper bound or a greatest lower bound in terms of ...

Given a set of alternatives and a single player, we introduce the notion of a responsive lottery. These mechanisms receive as input from the player a reported utility function, specifying a value for each one of the alternatives, and use a lottery to produce as output a probability distribution over the alternatives. Thereafter, exactly one alternative wins (is given to the player) with the res...

Partially consonant belief functions (pcb), studied by P. Walley, are the only class of Dempster-Shafer belief functions that are consistent with the likelihood principle of statistics. Structurally, the set of foci of a pcb is partitioned into non-overlapping groups and within each group, foci are nested. The pcb class includes both probability function and Zadeh’s possibility function as spec...

Savings and Prize-Linked Savings Accounts Many households have insufficient savings to handle moderate and routine consumption shocks. Many of these financially fragile households also have the highest lottery expenditures as a proportion of income. This combination suggests that Prize-Linked Savings (PLS) accounts, that combine principal-security with lottery-type jackpots, can increase saving...

This paper shows how to maximize revenue when a contest is noisy. We consider a case where two or more contestants bid for a prize in a stochastic contest with proportional probabilities, where all bidders value the prize equally. We show that by fixing the number of tickets, thus setting a limit to total expenditures, it is possible to maximize the auctioneer’s revenue and obtain (almost) full...

Recent work on neural network pruning indicates that, at training time, neural networks need to be significantly larger in size than is necessary to represent the eventual functions that they learn. This paper articulates a new hypothesis to explain this phenomenon. This conjecture, which we term the lottery ticket hypothesis, proposes that successful training depends on lucky random initializa...