Skewness preferences in choice under risk
Skewness preferences—preferences toward low-probability, high-impact risks—are crucial determinants of economic behavior. This paper defines first- and higher-order skewness preferences and shows that the order of skewness preference captures the importance of skewness relative to mean and variance....
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| Main Authors: | , |
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| Format: | Article (Journal) Book/Monograph |
| Language: | English |
| Published: |
[S.l.]
SSRN
August 10, 2021
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| DOI: | 10.2139/ssrn.3480519 |
| Online Access: | Verlag, kostenfrei: https://ssrn.com/abstract=3480519 Resolving-System, kostenfrei: https://doi.org/10.2139/ssrn.3480519 
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| Author Notes: | Sebastian Ebert, Paul Karehnke |
| Summary: | Skewness preferences—preferences toward low-probability, high-impact risks—are crucial determinants of economic behavior. This paper defines first- and higher-order skewness preferences and shows that the order of skewness preference captures the importance of skewness relative to mean and variance. While leading theories of choice under risk largely agree on the direction of skewness preference, they disagree on the order. In expected utility, skewness-seeking cannot be first-order—an impossibility result—which motivates the use of behavioral theories in economic modeling |
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| Item Description: | Zuerst veröffentlicht: 16. November 2019 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 10, 2021 erstellt |
| Physical Description: | Online Resource |
| DOI: | 10.2139/ssrn.3480519 |
| Access: | Open Access |