Sleepiness, Choice Consistency, and Risk Preferences

Marco Castillo (), David Dickinson and Ragan Petrie

No 8709, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate the consistency and stability of individual risk preferences by manipulating cognitive resources. Participants are randomly assigned to an experiment session at a preferred time of day relative to their diurnal preference (circadian matched) or at a non-preferred time (circadian mismatched) and choose allocations between two risky assets (using the Choi et al., 2007, design). Consistency of behavior of circadian matched and mismatched subjects is statistically the same, however mismatched subjects tend to take more risks. We conclude that, consistent with several theories, preferences are rational yet can change depending on state-level cognitive resources.

Keywords: risky preference; sleep; choice consistency (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2014-12
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - revised version published in: Theory and Decision, 2017, 82, 41–73, (2017

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Journal Article: Sleepiness, choice consistency, and risk preferences (2017)
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