Dertwinkel-Kalt, Markus; Köster, Mats - 2019 - First version: February 2017, this version: January 2019
Whether people seek or avoid risks on gambling, insurance, asset, or labor markets crucially depends on the skewness of the underlying probability distribution. In fact, people typically seek positively skewed risks and avoid negatively skewed risks. We show that salience theory of choice under...
