Are Preferences for Skewness fixed or Fungible

نویسندگان

  • Todd L. Cherry
  • Sara Gunnarsson
  • Jason F. Shogren
چکیده

Are individual preferences for skewness fixed or fungible? Using preference reversals as a case study, we find evidence that preferences remained stable as reversals disappear due to arbitrage across both market-like and non-market contexts. Todd L. Cherry, Sara Gunnarsson, & Jason F. Shogren (2003) "Are Preferences for Skewness fixed or Fungible" Economic Letters Volume 80 Issue 1 pp.113-121 [DOI: 10.1016/ S0165-1765(03)00034-X] Version of Record Available From (www.sciencedirect.com)

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Institutional Skewness Preferences and the Idiosyncratic Skewness Premium∗

This study examines whether idiosyncratic skewness preferences of institutional investors influence stock returns. On aggregate, institutions exhibit an aversion for idiosyncratic skewness but prefer systematic skewness, and in the cross-section, larger (smaller) and more (less) diversified institutions exhibit stronger (weaker) aversion for idiosyncratic skewness. The aggregate institutional p...

متن کامل

Skewness and market investors risk preferences

Risk preferences are generally measured with utility functions, which are subjective and usually restrict market agents to be risk averse. The current study investigates investors' preferences toward risk from the index price movement perspective. In a risk neutral market, future prices will increase or decrease with the same probability. However, if the market representative-agents are risk av...

متن کامل

Utility functions predict variance and skewness risk preferences in monkeys.

Utility is the fundamental variable thought to underlie economic choices. In particular, utility functions are believed to reflect preferences toward risk, a key decision variable in many real-life situations. To assess the validity of utility representations, it is therefore important to examine risk preferences. In turn, this approach requires formal definitions of risk. A standard approach i...

متن کامل

The Impact of Presentation Format and Self-reported

This paper reports the results of an experiment on the revealed preference for skewness in a comparison of continuous return distributions. We find that revealed preferences are highly sensitive to the way asset risks are communicated. While probability density functions lead to a pronounced preference for left-skewed distributions, the opposite is true for cumulative distribution functions. Sy...

متن کامل

Reward skewness coding in the insula independent of probability and loss.

Rewards in the natural environment are rarely predicted with complete certainty. Uncertainty relating to future rewards has typically been defined as the variance of the potential outcomes. However, the asymmetry of predicted reward distributions, known as skewness, constitutes a distinct but neuroscientifically underexplored risk term that may also have an impact on preference. By changing onl...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2003