Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296066 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 10977
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We test for skewness preferences in a large set of observational panel data on online poker games (n=4,450,585). Each observation refers to a choice between a safe option and a binary risk of winning or losing the game. Our setting offers a real-world choice situation with substantial incentives where probability distributions are simple, transparent, and known to the decision-makers. Individuals reveal a strong and robust preference for skewness, which is inconsistent with expected utility theory. The effect of skewness is most pronounced among experienced and unsuccessful players but remains significant in all subsamples that we investigate, in contrast to the effect of variance.
Subjects: 
risk preferences
choice under risk
skewness
gambling
JEL: 
D01
D81
G40
Document Type: 
Working Paper
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