Mediation tests reveal that higher-UA consumers anchor on the sure loss and stay with their choice because they prefer the certainty if the sure smaller loss to the possibility of a possible larger loss a dual-mediation mechanism. A model of casino gambling N Barberis Management Science 58 1,
Sorry, some features may not work in this version of Internet Explorer. Journal of Financial Economics 68 2, Our first nodel has a simple Markovian structure: The theory is developed under the paradigm of expected discounted payoff, where the process to stop is continuous and Markovian. We use the stimuli from the original Prospect Theory paper, measure UA using an individual-level scale and conduct controlled experimental laboratory studies.A model of investor sentiment. N Barberis, A X-CAPM: An extrapolative capital asset pricing model. N Barberis, R A model of casino gambling. N Barberis. A Model of Casino Gambling. Nicholas Barberis. Yale University. June ∗. Abstract. We show that prospect theory offers a rich theory of casino gambling. We show that prospect theory offers a rich theory of casino gambling, one that captures several features of actual gambling behavior. First, we.