A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2017; you can also visit the original URL.
The file type is
In this paper, we present the results of a simple, easily replicable, survey study based on lottery bonds. It is aimed at testing whether agents make investment decisions according to expected utility, cumulative prospect theory (Tversky-Kahneman, 1992) or optimal expectations theory (Brunnermeier and Parker, 2005, Brunnermeier et al., 2007) when they face skewed distributions of returns. We show that more than 56% of the 245 participants obey optimal expectations theory. They choose adoi:10.1080/15427560.2011.620200 fatcat:sz7wbbbypncwtkk7fitpvxaboq