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 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.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Keyword

time pressure

risk aversion

loss aversion

gain seeking

aspiration levels

GENDER-DIFFERENCES

PROSPECT-THEORY

EXPECTED UTILITY

ASPIRATION LEVEL

CHOICE

AVERSION

INCENTIVES

MONEY

PROBABILITY

ECONOMICS

Publication and Content Type

ref (subject category)

art (subject category)