Stock-option compensation is coherent with the principle of agency theory, by encouraging risk averse executives to take a more risk neutral stance. However, it is unclear whether the contract is actually more powerful than personal characteristics in shaping decision-making. We compare...

Parametric and non-parametric risk aversion is often elicited through binary lotteries. Basing ourselves on recent evidence of the higher than theorized importance of skewness in decision making, we highlight in this paper that skewness might bias the result of risk aversion elicitation in two...