On the Positive Expected Utility of Combination Wagers

Babatunde Buraimo (), David Peel and Rob Simmons ()
Additional contact information
Rob Simmons: Management School, Lancaster University, Lancaster LA1 4YX, United Kingdom

Decision Analysis, 2016, vol. 13, issue 3, 209-212

Abstract: We demonstrate that a utility maximizing individual with an everywhere concave utility function may optimally wager on two or more outcomes in an event even though the expected returns to a unit stake are negative on all outcomes except one.

Keywords: expected utility; optimal wagering; combination wagers on an event (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/deca.2016.0334 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ordeca:v:13:y:2016:i:3:p:209-212

Access Statistics for this article

More articles in Decision Analysis from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().