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  1. Skewness seeking: risk loving, optimism or overweighting of small probabilities?Thomas Åstebro, José Mata & Luís Santos-Pinto - 2015 - Theory and Decision 78 (2):189-208.
    In a controlled laboratory experiment we use one sample of college students and one of mature executives to investigate how positive skew influences risky choices. In reduced-form regressions we find that both students and executives make riskier choices when lotteries display positive skew. We estimate decision models to explore three explanations for skew seeking choices: risk-loving, optimism and likelihood insensitivity. We find no role for love for risk as neither students nor executives have convex utility. Both optimism and likelihood insensitivity (...)
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  • The empirical adequacy of cumulative prospect theory and its implications for normative assessment.Glenn W. Harrison & Don Ross - 2017 - Journal of Economic Methodology 24 (2):150-165.
    Much behavioral welfare economics assumes that expected utility theory does not accurately describe most human choice under risk. A substantial literature instead evaluates welfare consequences by taking cumulative prospect theory as the natural default alternative, at least where description is concerned. We present evidence, based on a review of previous literature and new experimental data, that the most empirically adequate hypothesis about human choice under risk is that it is heterogeneous, and that where EUT does not apply, more choice is (...)
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  • Measuring risk aversion with lists: a new bias. [REVIEW]Antoni Bosch-Domènech & Joaquim Silvestre - 2013 - Theory and Decision 75 (4):465-496.
    Various experimental procedures aimed at measuring individual risk aversion involve a list of pairs of alternative prospects. We first study the widely used method by Holt and Laury :1644–1655, 2002), for which we find that the removal of some items from the lists yields a systematic decrease in risk aversion and scrambles the ranking of individuals by risk aversion. This bias, that we call embedding bias, is quite distinct from other confounds that have been previously observed in the use of (...)
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  • Assortative mating on risk attitude.Philomena M. Bacon, Anna Conte & Peter G. Moffatt - 2014 - Theory and Decision 77 (3):389-401.
    Spousal correlation in risk attitude is estimated using data from the German Socio-Economic Panel over the period 2004–2009. We apply the bivariate panel ordered probit model to the analysis of the simultaneous determination of the male’s and the female’s risk attitude, using the survey question about general willingness to take risk, provided on a 0–10 Likert-scale. The correlations between both the individual-specific effects of the two partners and the two within-individual errors are separately estimated, and found to be +0.285 and (...)
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