Why people choose negative expected return assets - an empirical examination of a utility theoretic explanation
By: by Thomas A. Garrett and Nalinaksha Bhattacharyya
Contributors: Bhattacharyya, Nalinaksha; Federal Reserve Bank of St. Louis
Series: Working paper -- 2006-014A; Working paper (Federal Reserve Bank of St. Louis : Online) -- 2006-014A.
Publisher: Federal Reserve Bank of St. Louis
Published: 2006
Place of publication: St. Louis, Mo.]
Language: eng
Format: [electronic resource] /
Description: "Using a theoretical extension of the Friedman and Savage (1948) utility function developed in Bhattacharyya (2003), we predict that for financial assets with negative expected returns, expected return will be a declining and convex function of skewness.  Using a sample of U.S.  state lottery games, we find that our theoretical conclusions are supported by the data.  Our results have external validity as they also hold for an alternative and more aggregated sample of lottery game data"--Federal Reserve Bank of St. Louis web site.
Notes: Title from PDF file as viewed on 6/26/2006.

Includes bibliographical references.

Also available in print.

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