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On skew preference or non-skew preference of a CPT DM revealed in lottery choices with three payoffs

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
Article number111549
<mark>Journal publication date</mark>29/02/2024
<mark>Journal</mark>Economics Letters
Volume235
Publication StatusPublished
Early online date19/01/24
<mark>Original language</mark>English

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.