Risk and time preferences interaction: An experimental measurement
We experimentally characterize and measure the interaction between risk and time preferences. Our results indicate that risk and time preferences are intertwined. We find that decision makers are insensitive to time delay for small probabilities of gains, but become progressively more sensitive to t...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2022 |
| País: | España |
| Institución: | IE |
| Repositorio: | Repositorio IE |
| OAI Identifier: | oai:repositorio.ie.edu:20.500.14417/3930 |
| Acceso en línea: | https://doi.org/10.1007/s11166-022-09394-9 https://hdl.handle.net/20.500.14417/3930 https://link.springer.com/article/10.1007/s11166-022-09394-9 |
| Access Level: | acceso abierto |
| Palabra clave: | Risk attitudes Time preferences Risk-time preferences interaction 53 Ciencias Económicas::5307 Teoría económica ODS 12 - Producción y consumo responsables |
| Sumario: | We experimentally characterize and measure the interaction between risk and time preferences. Our results indicate that risk and time preferences are intertwined. We find that decision makers are insensitive to time delay for small probabilities of gains, but become progressively more sensitive to time delay as the probability of gain increases. We compare the fit of existing decision models that capture risk and time preferences. Our results indicate that the models which allow for probability-time interaction and capture magnitude effect fit the data better. We also show that accounting for risk-time preferences interaction leads to lower estimated discount rates. |
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