Local Thinking and Skewness Preferences
Markus Dertwinkel-Kalt () and
Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association
We show that models of stimulus-driven attention can account for skewness preferences. As unlikely, but outstanding payoffs attract attention, an agent exhibits a preference for right-skewed and an aversion toward left-skewed risks. We show that extreme predictions on skewness preferences by prospect theory can be ruled out for models of stimulus-driven attention.
JEL-codes: D81 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic, nep-neu and nep-upt
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Working Paper: Local Thinking and Skewness Preferences (2017)
Working Paper: Local thinking and skewness preferences (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168303
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