# Increases in skewness and three-moment preferences

*Thomas Eichner* and
*Andreas Wagener*

*Mathematical Social Sciences*, 2011, vol. 61, issue 2, 109-113

**Abstract:**
We call an agent skewness affine if and only if his marginal willingness to accept a risk increases when the distribution of the risk becomes more skewed to the right. Skewness affinity is shown to be equivalent to the marginal rate of substitution between mean and variance of wealth being decreasing in the skewness. This property allows us to characterize the comparative static effect of increases in the skewness in quasi-linear decision problems. Over domains of skewness-comparable lotteries skewness affinity is equivalent to the von Neumann-Morgenstern utility index of relative temperance being smaller than three.

**Keywords:** Mean; Variance; Skewness; Skewness; affinity (search for similar items in EconPapers)

**Date:** 2011

**References:** View references in EconPapers View complete reference list from CitEc

**Citations:** View citations in EconPapers (4) Track citations by RSS feed

**Downloads:** (external link)

http://www.sciencedirect.com/science/article/pii/S0165-4896(10)00095-8

Full text for ScienceDirect subscribers only

**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:eee:matsoc:v:61:y:2011:i:2:p:109-113

Access Statistics for this article

Mathematical Social Sciences is currently edited by *J.-F. Laslier*

More articles in Mathematical Social Sciences from Elsevier

Bibliographic data for series maintained by Catherine Liu ().