Abstract
In this letter we illustrate that the representative Cumulative Prospect Decision Maker when choosing between lotteries with three payoffs that exhibit the same probabilities of payoffs and expected return and variance can exhibit either skew preference or non-skew preference and consequently explain the conflicting experimental result reported in the literature.
Original language | English |
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Article number | 111549 |
Journal | Economics Letters |
Volume | 235 |
DOIs | |
Publication status | Published - Feb 2024 |
Keywords
- Cumulative prospect theory
- Kurtosis
- Lotteries
- Skewness