Traditionally, the Gambler's Fallacy is described as the belief that a sequence of independent outcomes over time should exhibit short-run reversals. The underlying psychological bias thought to drive this fallacy is Representativeness Bias: the idea that even a small sample of outcomes should...

The Chinese government has adopted a rebalancing strategy since 2011, shifting from an investment- to consumption-oriented growth model. An aim of this reform is for a “greener” development mode, but relevant empirical evidence is slim. In this study, we propose an innovative methodology to...

We revisit the effect of trade openness on environmental quality by utilizing data on the air visibility of 134 countries during 1961–2004. We find a significantly negative impact of trade openness on air quality, not only for developing economies, but also for developed ones. This finding is...

We investigate whether people are influenced to make investment decisions based on random shock signals and to what extent they do so by exploiting a unique data set from a popular Chinese lottery game with over one million observations. We first present evidence that people, as individual...

As lottery becomes a more and more important source for government tax revenue, one opinion argues that governments should strategically manage different lotteries and coordinate the prices of different lotteries. Although, in the literature, many studies have examined single lottery price...

Frequent online poker players with extensive experience calculating probabilities and expected values might be expected to behave as Expected Utility maximizers, in that small shocks to their wealth would not affect risk preferences (Rabin, 2000). By contrast, reference-dependent loss aversion...