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Kocher, Martin G.; Sutter, Matthias (2006): Time is money - Time pressure, incentives, and the quality of decision-making. In: Journal of Economic Behavior and Organization, Vol. 61, Nr. 3: S. 375-392
Volltext auf 'Open Access LMU' nicht verfügbar.

Abstract

Many decisions in economics and finance have to be made under severe time pressure. Furthermore, payoffs frequently depend on the speed of decision-making, as, for instance, when buying and selling stocks. In this paper, we examine the influence of time pressure and time-dependent incentive schemes on the quality of decision-making in an experimental beauty-contest game. We find that convergence to equilibrium is faster and payoffs are higher under low time pressure than under high time pressure. Interestingly, time-dependent payoffs under high time pressure lead to significantly quicker decision-making without reducing the quality of decisions.