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David Peel
David Law


The purpose in this paper is  to demonstrate how the non-expected utility models of Markowitz and Kahneman and Tversky  can explain why an agent, chooses to bet  each way on a horse.We also show that that appeal to moments of return, such as a preference for skewness of return, ceteris paribus, to explain the choice of the each way gamble over the single win gamble is , in general, invalid.

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