Craving money? Evidence from the laboratory and the field

We propose a new model of choice under repeated exposure to gambles. In it, the agent may come to choose a negative expected value, negative skew gamble, due to a behavioral bias that has a neurobiological foundation. We run laboratory experiments as a first step in testing the model and supplement the experimental findings with suggestive evidence from observational data. In the process of doing so, we identify a new asset pricing anomaly. The findings bring novel insights into the motivations underlying investor decisions and the impact of temptation and self-control in contexts of repeated risk-taking. , , , # Craving Money? Evidence from the Laboratory and the Field

All the data and code used to generate the findings for the paper can be found here. You can find the code to generate the lab/theoretical results and the data for the option prices and transaction level data.

**1st.) For the experimental and Lab results:**

All experimental data needed to evaluate the conclusions reported in the article and the Supplementary Materials are available at:

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The code used to generate the experimental findings reported in the article and its Supplementary Materials can be found here in the repository.

The code covers all the models listed below.

* Base model (Risk neutral, Deterministic):
* Base model (Risk neutral, softmax):
* Base model (prospect theory, Deterministic):
* Base model (prospect theory, softmax):
* Base model with Gambler's Fallacy:
* Base model augmented with CbD (Risk neutral, Deterministic):
* Base model augmented with CbD...