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 …

Building on previous studies on perceptions of inequality, welfare and risk we investigate the structure of individuals …' rankings of uncertain prospects in terms of risk and their relationship to individual preferences. We examine three interlinked … propositions that are fundamental to the standard economic approach to risk: (i) that rankings by risk are simply the reverse of …