In this paper we experimentally test skewness seeking at the individuallevel. Several prospects that can be ordered …

Economics and management science share the tradition of ordering risk aversionby fitting the best expected utility (EU … soleindex of risk attitude. (Cumulative) Prospect theory (CPT) has demonstrated vari-ous empirical deficiencies of EU and … introduced the weighting of probabilities as anadditional component to capture risk attitude. However, if utility curvature and …

In the framework of expected utility theory, risk attitudes are entirely capturedby the curvature of the utility … thismodication, one question arises naturally: since both utility and probability weight-ing determine the attitude towards risk …, what is the relation between them? Weran a controlled laboratory experiment to answer this question. Our ndings suggestthat …

In this paper, we experimentally test the Modigliani-Miller theorem. Applying ageneral equilibrium approach and not …-Miller theorem, experimental subjects well recognizedthe increased systematic risk of the equity with increasing leverage and … accordinglydemanded higher rate of return. Yet, this adjustment was not perfect: subjects un-derestimated the systematic risk of low …

We present an experiment designed to test the Modigliani-Miller theorem. Applyinga general equilibrium approach and not …, participantswell recognize changes in the systematic risk of equity associated with increasingleverage and, accordingly, demand higher … rate of return. Yet, this adjustment is notperfect: subjects underestimate the systematic risk of low-leveraged equity …