Liking the long-shot … but just as a friend

Matthew P. Taylor ()
Additional contact information
Matthew P. Taylor: University of Montana

Journal of Risk and Uncertainty, 2020, vol. 61, issue 3, No 3, 245-261

Abstract: Abstract I modify the skewed lottery task introduced by Grossman and Eckel (Journal of Risk and Uncertainty, 51(3), 2015) to eliminate the effects of loss aversion as a potentially confounding explanation for the strong preference for skewed lotteries and increase in risk taking that they observe when skew increases. I also test for framing effects by reversing the order of the task. Like previous studies, a majority of subjects prefer skewed lotteries relative to those with no skew, but this preference is dampened when loss aversion is eliminated as a confound and the order of the task is reverse. More importantly, introducing skew is unlikely to cause an increase in risk taking in this task.

Keywords: Risk aversion; Skewness; Framing effects; Order effect; Position effect (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1007/s11166-020-09342-5 Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:jrisku:v:61:y:2020:i:3:d:10.1007_s11166-020-09342-5

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11166/PS2

DOI: 10.1007/s11166-020-09342-5

Access Statistics for this article

Journal of Risk and Uncertainty is currently edited by W. Kip Viscusi

More articles in Journal of Risk and Uncertainty from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().