Rocha, Gabriel Sifuentes; Laurini, Márcio Poletti - In: Review of Behavioral Finance 16 (2024) 6, pp. 1151-1170
Purpose This study investigates the paradox of lotteries in financial markets, challenging traditional utility models predicated on rational behavior amid uncertainty. It explores why investors are drawn to lotteries despite the potential trade-off between risk-adjusted returns and sporadically...