- A-Z
- Jena Economic Resea...
- Volume 1
- A Note on Skewness ...
- Autor(in)
- Erschienen
- 1. November 2007
- Nummer des Discussion-Papers
-
2007-079
- Schlagwort(e)
-
Decision making under uncertainty
Skewness
Stochastic dominance
- Zusammenfsg.
-
In this paper we experimentally test skewness seeking at the individual level. Several prospects that can be ordered with respect to the third-degree stochastic dominance (3SD) criterion are ranked by the participants of the experiment. We find that the skewness of a distribution has a significant impact on the decisions. Yet, while skewness has an impact, its direction differs substantially across subjects: 39% of our subjects act in accordance with skewness seeking and 10% seem to avoid skewness. On the level of individual decisions we find that the variance of the prospects and subjects’ experience increase the probability of their choosing the lottery with greater skewness.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- experimental economics
- JEL-Classification for JER
- D81 - Criteria for Decision-Making under Risk and Uncertainty ; C91 - Laboratory, Individual Behavior ; G11 - Portfolio Choice; Investment Decisions