Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 30, 2017 erstellt
Beschreibung:
In an attempt to explain both gambling and insurance behavior, economists have sought to reconcile gambling behavior with risk-averse preferences. In this note, I argue that there is no need for reconciliation. Both gambling and insurance behavior can be explained by the same motivation to concentrate resources into a subset of states in order to overcome affordability constraints