Chiappori Pierre A. author Columbia University. Economics Salanie Bernard author Columbia University. Economics Salanie Francois author Gandhi Amit author Columbia University. Economics originator contributor text Working papers New York Department of Economics, Columbia University 2012 As a textbook model of contingent markets, horse races are an attractive environment to study the attitudes towards risk of bettors. We innovate on the literature by explicitly considering heterogeneous bettors and allowing for very general risk preferences, including non-expected utility. We build on a standard single-crossing condition on preferences to derive testable implications; and we show how parimutuel data allow us to uniquely identify the distribution of preferences among the population of bettors. We then estimate the model on data from US races. Within the expected utility class, the most usual specfications (CARA and CRRA) fit the data very badly. Our results show evidence for both heterogeneity and nonlinear probability weighting. Economics 1213-08 http://hdl.handle.net/10022/AC:P:15210 English NNC NNC 2012-11-07 12:00:31 -0500 2012-11-07 12:06:27 -0500 9212 eng