DEPENDENCE OF DECISIONS MADE UNDER RISK ON THE SKEWNESS OF GAINS DISTRIBUTION: EXPERIMENTAL RESULTS
DOI:
https://doi.org/10.29015/cerem.204Keywords:
experiment, skewness of gains distribution, riskAbstract
Aim: The aim of the article is to evaluate the influence of skewness of gains distribution on the willingness to take risk in a specific lottery.
Methodology: In the article we describe results of an experiment conducted among students of a higher university. During the experiment we verified the influence of skewness of gains distribution on the decisions to participate in the lottery, that the result of influenced positively or negatively on the amount of points, that a student could gather in order to finish the class with positive note.
Results: The experiment showed that while the gains distribution is negatively skewed people are less risk-loving and when it is positively skewed people tend to take more risk (i.e. take part in a lottery).It is important to underline that each of the proposed lotteries was characterized by the same expected value. Moreover the result of the game could have been positive or negative.References
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