Généralisation de l'espérance d'utilité: le cas des jeux de loterie en France

Serge Blondel

Economie & Prévision, 2003, vol. 159, issue 3, 105-112

Abstract: WetakeasstartingpointastylisedfactidentifiedsinceFriedmanandSavage(1948):thepoorerpeoplearethemorethey gamble. ThisconclusionistobefoundinthecaseoflotteriesinFrance. Itcanbeexplainedintheframeworkofexpected utility (EU) theory, but only on the assumption of a utility function that exceptionally calls into question the usual assumption of aversion to risk. We examine the predictions of rank-dependent expected utility theory, the most popular generalisation of EU. This theoryisconsistentwithapropensitytogamblethatdecreasesasafunctionofwealthwhilestillmaintaininganotherwise concave utility function. This result argues in favour of a broadening of the rationality with respect to EU taken on its own.

Keywords: money games; rank dependent expected utility (search for similar items in EconPapers)
Date: 2003
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