Can Expected Utility Theory Explain Gambling?
研究期望效用理论能否同时解释赌博和保险行为，发现非凹效用函数可以解释赌博，且借贷利率与时间偏好率的差异会影响赌博需求。
We investigate the ability of expected utility theory to account for simultaneous gambling and insurance. Contrary to a previous claim that borrowing and lending in perfect capital markets removes the demand for gambles, we show expected utility theory with nonconcave utility functions can explain gambling. When the rates of interest and time preference are equal, agents seek to gamble unless income falls in a finite set of values. When they differ, there is a range of incomes where gambles are desired. Different borrowing and lending rates can account for persistent gambling provided the rates span the rate of time preference.