Wang, Jen-Hung; Tzeng, Larry; Tien, Junji - In: Applied Economics 38 (2006) 10, pp. 1207-1216
Why do many bettors participate in an unfair gamble, in particular a lotto game, while at the same time purchase insurance? The willingness-to-pay for lotto is analysed to find a 'rational' explanation for a (local) risk-averter's participation in an unfair bet. A reasonable case is found where...