A Note on Skewness Seeking: An Experimental Analysis

Tobias Broenner, René Levínský () and Jianying Qiu
Additional contact information
Tobias Broenner: Institut zur Erforschung der wirtschaftlichen Entwicklung, Albert-Ludwigs-Universitaet Freiburg

No 2007-079, Jena Economics Research Papers from Friedrich-Schiller-University Jena

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 ï¬ nd that the skewness of a distribution has a signiï¬ cant 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 ï¬ nd that the variance of the prospects and subjects’ experience increase the probability of their choosing the lottery with greater skewness.

Keywords: Skewness; Stochastic dominance; Decision making under uncertainty (search for similar items in EconPapers)
JEL-codes: C91 D81 G11 (search for similar items in EconPapers)
Date: 2007-11-01
New Economics Papers: this item is included in nep-cbe and nep-exp
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2007/wp_2007_079.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2007-079

Access Statistics for this paper

More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().