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Hidden Skewness

Author

Listed:
  • Ensthaler, Ludwig

    (DIW Berlin)

  • Nottmeyer, Olga

    (IZA)

  • Weizsäcker, Georg

    (Humboldt University Berlin)

Abstract

We provide laboratory evidence that people neglect skewness resulting from compound shocks.

Suggested Citation

  • Ensthaler, Ludwig & Nottmeyer, Olga & Weizsäcker, Georg, 2010. "Hidden Skewness," IZA Discussion Papers 5109, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5109
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    References listed on IDEAS

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    1. Shlomo Benartzi & Richard H. Thaler, 1999. "Risk Aversion or Myopia? Choices in Repeated Gambles and Retirement Investments," Management Science, INFORMS, vol. 45(3), pages 364-381, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    binomial tree; belief biases; skewness;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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