Does Probability Weighting Drive Lottery Preferences?
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DOI: 10.1080/15427560.2019.1672167
Abstract: Abstract We propose a test of the theory of skewness preferences. The probability weighting feature that is the basis of their theory relies on investors overweighting the probability of extreme, positive returns. The resulting investor… read more here.
Keywords: probability; week high; preferences probability; probability weighting ... See more keywords