Tempus fugit: time pressure in risky decisions

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 und...

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Bibliographische Detailangaben
Hauptverfasser: Kocher, Martin (VerfasserIn) , Pahlke, Julius (VerfasserIn) , Trautmann, Stefan T. (VerfasserIn)
Dokumenttyp: Book/Monograph Arbeitspapier
Sprache:Englisch
Veröffentlicht: München Univ., Volkswirtschaftl. Fak. 2011
Schriftenreihe:Münchener Wirtschaftswissenschaftliche Beiträge 2011-08
In: Münchener Wirtschaftswissenschaftliche Beiträge (2011-08)

Schlagworte:
Online-Zugang:Resolving-System, Volltext: http://hdl.handle.net/10419/104331
Volltext
Verfasserangaben:Martin G. Kocher; Julius Pahlke und Stefan T. Trautmann

MARC

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520 |a 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. 
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