We investigate and axiomatize preferences that display indifference between deterministic states, but exhibit strict orderings over lotteries over these states. Such preferences might be due to the ability to adopt to states, or a (dis)taste for uncertainty. We derive a representation theorem...

Multi-leg parlay bets have become hugely popular in the US despite loss rates on stakes that are four times higher than regular bets. This paper shows that even if bettors believe they have an edge, maximization of subjective expected utility requires placing separate bets when per-leg win...

Suppose populations of economic agents that are parameterized by skewness preference. For stated agents, increasing marginal utility for wealth necessarily is facilitated by a risk premium function that only robustly is parameterized with reference to `relative safety', as opposed to `relative...

In this note we ask when Epstein-Zin-Weil (EZW) recursive utility over the infinite horizon is well-founded. EZW recursive utility has a parameter $\gamma 0$ representing risk aversion and a parameter $\psi 0$ representing intertemporal elasticity of substitution, and is an extension of...