The Microeconomics of Market Failures -- Contents -- Preface -- The Microeconomics of Market Failures -- Introduction -- Collective Choice -- The Aggregation of Preferences -- Cost-Benefit Analysis -- Implementation -- Public Economics -- Public Goods -- External Effects -- Nonconvexities --...

We investigate in this paper the attitudes toward risk of bettors in British horse races. The model we use allows us to go beyond the expected utility framework and to explore various alternative proposals by estimating a multinomial model on a 34443-race data set. We find that rank-dependent...