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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 two experiments we find that time pressure has no effect on risk attitudes for gains, but increases risk aversion for losses. For mixed prospects, subjects become simultaneously 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, and thus the overall probability to break even, under time pressure. We discuss the implications of our findings for decision-making situations that involve time pressure.
Item Type: | Journal article |
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Faculties: | Economics Economics > Chairs > Chair of Empirical Economics |
Subjects: | 300 Social sciences > 330 Economics |
ISSN: | 1526-5501 |
Language: | English |
Item ID: | 18174 |
Date Deposited: | 06. Feb 2014, 15:28 |
Last Modified: | 04. Nov 2020, 12:59 |
Available Versions of this Item
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Tempus Fugit: Time Pressure in Risky Decisions. (deposited 19. Apr 2011, 14:35)
- Tempus Fugit: Time pressure in risky decisions. (deposited 06. Feb 2014, 15:28) [Currently Displayed]