{"title":"A Note on Skewness Seeking: An Experimental Analysis","authors":"Tobias Bruenner, R. Levínský, J. Qiu","doi":"10.2139/ssrn.1026602","DOIUrl":null,"url":null,"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 i¬ nd that the skewness of a distribution has a signii¬ cant impact on the decisions. Yet, while skewness has an impact, its direction dii¬€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 i¬ nd that the variance of the prospects and subjects’ experience increase the probability of their choosing the lottery with greater skewness.","PeriodicalId":365027,"journal":{"name":"Jena Economic Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2007-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"9","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Jena Economic Research Paper Series","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.1026602","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 9
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 i¬ nd that the skewness of a distribution has a signii¬ cant impact on the decisions. Yet, while skewness has an impact, its direction dii¬€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 i¬ nd that the variance of the prospects and subjects’ experience increase the probability of their choosing the lottery with greater skewness.