Liking the long-shot … but just as a friend

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Pages (from-to)245-261
Number of pages17
JournalJournal of Risk and Uncertainty
Volume61
Issue number3
DOIs
StatePublished - Dec 2020

Keywords

  • Framing effects
  • Order effect
  • Position effect
  • Risk aversion
  • Skewness

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