Revealed Lottery Complexity

Workshop Computational Complexity of Decision-Making 2024
Speaker(s) Jose Apesteguia (Universitat Pompeu Fabra)
Date Wednesday, 20 November 2024
Time 2:20pm - 3pm (AEST)
Abstract There is increasing attention to the role of complexity in the evaluation of lotteries. In this paper we build a theoretical framework to obtain from data: (i) the endogenous complexity ranking of lotteries, and (ii) the channel through which complexity affects risk attitudes. We showcase our framework using an extensive published experimental dataset.