Title :

Extreme events and the cumulative distribution of net gains in gambling and structured products

Author(s) :

Vrins, Frédéric [Auteur]
Dispositifs Intégrés et Circuits Electroniques Machine Learning Group [DICE - MLG]
Petitjean, Mikael [Auteur]
Lille économie management - UMR 9221 [LEM]

Journal title :

Applied Economics

Pages :

6285-6300

Publisher :

Taylor & Francis (Routledge)

Publication date :

2018-07-07

ISSN :

0003-6846

English keyword(s) :

Extreme events
ethical communication
distribution of gains
simulations
gambling
lotteries
structured products

HAL domain(s) :

Sciences de l'Homme et Société
Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

We argue that ethical principles in advertising and market communication cannot be properly discovered and applied to gambling without a deep understanding of its probabilistic implications, in particular when extreme ...
Show more >We argue that ethical principles in advertising and market communication cannot be properly discovered and applied to gambling without a deep understanding of its probabilistic implications, in particular when extreme events are influential. We carry out a probabilistic analysis of lottery games with lifetime prizes in order to derive sound recommendations about the pertinent information that should be communicated to nudge gamblers. We propose to focus on the cumulative distribution of net gains, for which there is currently no information available to gamblers. This holds true for structured products in which extreme events matter as well.Show less >

Language :

Anglais

Peer reviewed article :

Oui

Audience :

Internationale

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL