Tempus Fugit: Time Pressure in Risky Decisions

Kocher, Martin G.; Pahlke, Julius und Trautmann, Stefan T. (April 2011): Tempus Fugit: Time Pressure in Risky Decisions. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2011-8

Abstract

We study the effects of time pressure on risky decisions for pure gain prospects, pure loss prospects, and mixed prospects involving both gains and losses. In an experiment we find that risk aversion for gains is robust under time pressure whereas risk seeking for losses turns into risk aversion under time pressure. For mixed prospects, subjects become more loss averse and more gain seeking under time pressure, depending on the framing of the prospects. The results suggest the importance of aspiration levels under time pressure. We discuss the implications of our findings for decision making situations that involve time pressure.

• Dokumententyp: Paper
• Keywords: time pressure, risky decisions, risk aversion, loss aversion, gain seeking, aspiration level
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Munich Discussion Papers in Economics ; Volkswirtschaft > Lehrstühle > Seminar für Experimentelle Wirtschaftsforschung
• Themengebiete: 300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie ; 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: C91, D81
• Sprache: Englisch

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