ERC Starting Grant · 2018
Skewness Preferences – Human attitudes toward rare, high-impact risks
“Penny-picking in front of a steamroller” describes the behavior of repeatedly taking risks with an unlikely but extreme downside in order to secure a small but likely benefit. Examples of penny-picking include risking one’s life by driving too fast or blowing up financial bubbles by speculating that they will not burst just yet. Penny-picking suggests that people underweight rare, high-impact events when making their decisions. On the other hand, individuals overpay for lottery gambles and insurances alike, suggesting just the opposite—that people overweight rare, high-impact events. The goal of this project is to provide a fundamental understanding of humans’ skewness preferences—our…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.