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Title:A note on skewness seeking: an experimental analysis PDF Logo
Authors:Brünner, Tobias
Levínský, René
Qiu, Jianying
Issue Date:2007
Series/Report no.:Jena economic research papers 2007,079
Abstract: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 ¯nd that the skewness of a distribution has a signi¯cant impact on the decisions. Yet, while skewness has an impact, its direction di®ers 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 ¯nd that the variance of the prospects and subjects' experience increase the probability of their choosing the lottery with greater skewness.
Subjects:Skewness
Stochastic dominance
Decision making under uncertainty
JEL:D81
C91
G11
Document Type:Working Paper
Appears in Collections:Jena Economic Research Papers, MPI für Ökonomik

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