{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,6,22]],"date-time":"2026-06-22T13:48:07Z","timestamp":1782136087148,"version":"3.54.5"},"reference-count":31,"publisher":"Association for Computing Machinery (ACM)","issue":"2","license":[{"start":{"date-parts":[[2026,6,22]],"date-time":"2026-06-22T00:00:00Z","timestamp":1782086400000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/legalcode"}],"funder":[{"name":"JSPS KAKENHI","award":["JP22J13388"],"award-info":[{"award-number":["JP22J13388"]}]},{"name":"JSPS KAKENHI","award":["JP21J20493 and JP22KJ0563"],"award-info":[{"award-number":["JP21J20493 and JP22KJ0563"]}]},{"name":"JSPS KAKENHI","award":["JP20K19739 and JP25K00137"],"award-info":[{"award-number":["JP20K19739 and JP25K00137"]}]},{"name":"JST PRESTO","award":["JPMJPR2122"],"award-info":[{"award-number":["JPMJPR2122"]}]}],"content-domain":{"domain":["dl.acm.org"],"crossmark-restriction":true},"short-container-title":["ACM Trans. Econ. Comput."],"published-print":{"date-parts":[[2026,6,30]]},"abstract":"<jats:p>\n                    Lotteries are a prevalent form of gambling between a seller and buyers. Designing a lottery requires a model of how buyers make decisions when confronted with uncertain outcomes.\n                    <jats:italic toggle=\"yes\">Cumulative prospect theory (CPT)<\/jats:italic>\n                    is a descriptive model that captures people\u2019s propensity to overestimate extreme events and their different attitudes toward gains and losses. In this study, we design a lottery that maximizes the seller\u2019s profit when the buyers\u2019 decision-making adheres to the CPT framework. The main difficulty is the nonconvexity of the CPT framework, which we overcome by reformulating the problem as a three-level optimization problem and characterizing its optimal solution. Based on the analysis, we propose a linear-time algorithm that computes the optimal lottery. Furthermore, we present an efficient algorithm applicable to a broader setting with a ticket price constraint. This is the first study to employ the CPT framework in designing an optimal lottery with more than two outcomes.\n                  <\/jats:p>","DOI":"10.1145\/3811815","type":"journal-article","created":{"date-parts":[[2026,4,24]],"date-time":"2026-04-24T11:17:20Z","timestamp":1777029440000},"page":"1-29","update-policy":"https:\/\/doi.org\/10.1145\/crossmark-policy","source":"Crossref","is-referenced-by-count":0,"title":["Optimal Design of Lottery with Cumulative Prospect Theory"],"prefix":"10.1145","volume":"14","author":[{"ORCID":"https:\/\/orcid.org\/0009-0009-3550-7921","authenticated-orcid":false,"given":"Shunta","family":"Akiyama","sequence":"first","affiliation":[{"name":"The University of Tokyo","place":["Tokyo, Japan"]}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-3731-6776","authenticated-orcid":false,"given":"Mitsuaki","family":"Obara","sequence":"additional","affiliation":[{"name":"The University of Tokyo","place":["Tokyo, Japan"]}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-5626-779X","authenticated-orcid":false,"given":"Yasushi","family":"Kawase","sequence":"additional","affiliation":[{"name":"The University of Tokyo","place":["Tokyo, Japan"]}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"320","published-online":{"date-parts":[[2026,6,22]]},"reference":[{"issue":"3","key":"e_1_3_2_2_2","doi-asserted-by":"crossref","first-page":"1291","DOI":"10.1016\/j.jet.2012.01.002","article-title":"Risk-neutral firms can extract unbounded profits from consumers with prospect theory preferences","volume":"147","author":"Azevedo Eduardo M.","year":"2012","unstructured":"Eduardo M. 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