Delayed risk in individual and social decisions
This paper studies temporal-distance effects on individual and social risks, testing Construal Level Theory. We elicit WTPs for risky and ambiguous lotteries and vary the timing (immediately vs. in two weeks) when the uncertainty is resolved. Subjects have lower WTPs for longshots than for safer lot...
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| Main Authors: | , , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
June 2024
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| In: |
Journal of economic psychology
Year: 2024, Volume: 102, Pages: 1-12 |
| ISSN: | 0167-4870 |
| DOI: | 10.1016/j.joep.2024.102710 |
| Subjects: | |
| Online Access: | Verlag, lizenzpflichtig: https://www.sciencedirect.com/science/article/pii/S0167487024000187/pdfft?md5=9f0252232bfd97855271cd5ca355529b&pid=1-s2.0-S0167487024000187-main.pdf Resolving-System, lizenzpflichtig: https://doi.org/10.1016/j.joep.2024.102710 
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| Author Notes: | Asri Özgümüs, Holger A. Rau, Stefan T. Trautmann |
| Summary: | This paper studies temporal-distance effects on individual and social risks, testing Construal Level Theory. We elicit WTPs for risky and ambiguous lotteries and vary the timing (immediately vs. in two weeks) when the uncertainty is resolved. Subjects have lower WTPs for longshots than for safer lotteries. Under ambiguity, this gap decreases with temporal distance. Subjects are ambiguity averse, which becomes less pronounced when low-probability lotteries are processed in the future. In a trust game, we study temporal-distance effects on social risks. Time distance lowers trust as trustors correctly anticipate that reciprocity is lower when trustees decide in the future. |
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| Item Description: | Online verfügbar 23 February 2024, Version des Artikels 27 February 2024 Gesehen am 16.09.2024 |
| Physical Description: | Online Resource |
| ISSN: | 0167-4870 |
| DOI: | 10.1016/j.joep.2024.102710 |