We test for skewness preferences in a large set of observational panel data on online poker games (n=4,450,585). Each observation refers to a choice between a safe option and a binary risk of winning or losing the game. Our setting offers a real-world choice situation with substantial incentives...

Little is known about how gamblers estimate probabilities from multiple information sources. This paper reports on a preregistered study that administered an incentivized Bayesian choice task to n=465 participants (self-reported gamblers and non-gamblers). Our data failed to support our main...

During the COVID-19 pandemic, many new individual investors globally entered the stock markets, often pursuing speculative investment strategies that resemble gambling. A concern is that trading as a form of gambling can become addictive for some people, as documented by several recent studies...

We conduct a laboratory experiment to compare the fairness and intensity of round-robin tournaments with three symmetric players, a single prize, and two alternative match formats. Matches are either organized as lottery contests or all-pay auctions. Whereas we confirm the theoretical prediction...

The gambler's ruin is usually presented as a repeated game where the gambler can either win or lose one unit. We examine cases where the profits from winning gambles are multiple times the stake at risk, with the expected profit per gamble being either zero, positive or negative. For positive...

Markets are information aggregators. But how do they incorporate new data into their pricing? We examine the response of prediction markets to a novel information shock in a quasi-natural experiment: How did the absence announcements of elite soccer players influence the betting odds of affected...

In this paper, we conduct a large-scale field experiment to investigate the manipulability of prediction markets. The main experiment involves randomly shocking prices across 817 separate markets; we then collect hourly price data to examine whether the effects of these shocks persist over time....

I study how access to foreign-born workers impacts firms and local economics in times of acute crisis. The 2020 H-2B visa lottery randomly gave some U.S. firms the chance to hire low-wage, migrant workers during the height of the COVID-19 pandemic. Using administrative data across three...

In this paper, we investigate whether better schools can compensate for the effects of children’s genetic differences. To this end, we combine data from the Norwegian Mother, Father, and Child Cohort Study (MoBa) with Norwegian register data to estimate the interaction between genetic...

While sports betting markets share similarities with traditional financial markets, they are more accessible for empirical research thanks to availability of high-quality data, straightforward betting procedures, and the finite duration of events. As a result, they are often analyzed for market...

Information is incorporated into stock prices when investors trade; consequently, prices respond only to the information investors pay attention to. Because market efficiency requires rapid information dissemination and fully informative prices, attention necessarily affects the level of market...

We conduct a laboratory experiment to compare the fairness and intensity of round-robin tournaments with three symmetric players, a single prize, and two alternative match formats. Matches are either organized as lottery contests or all-pay auctions. Whereas we confirm the theoretical prediction...

We investigate whether better schools can compensate for the effects of children's genetic differences. To this end, we combine data from the Norwegian Mother, Father, and Child Cohort Study (MoBa) with Norwegian register data to estimate the interaction between genetic endowments and school...

We test for skewness preferences in a large set of observational panel data on online poker games (n=4,450,585). Each observation refers to a choice between a safe option and a binary risk of winning or losing the game. Our setting offers a real-world choice situation with substantial incentives...

We propose a model of addictive consumption to study the demand for imperfect substitutes involving substances like alcohol, nicotine and opioids, as well as behavioral addictions like gambling and digital addiction. We study a 2017 Italian policy aimed at reducing gambling by limiting the...

This study examines whether complete transparency about the randomness of prediction-generating processes mitigates the hot hand fallacy and the conditions under which it may fail. In a pre-registered laboratory experiment (N=750), we showed that transparency about the prediction-generating...

Following the work of Shin (1993) and Cain, Law and Peel (1997, 2001), several researchers have reported estimates of the fraction of money placed on sports betting by "insiders" with superior information to bookmakers. We show the method for estimating the fraction of insiders used in this...

This scoping review systematically examines the definitions, challenges, and methodologies for estimating the illegal gambling market, spanning literature from 2000 to 2023. Given the clandestine nature of illegal gambling and its significant economic and social implications, understanding its...