Tempus Fugit: Time Pressure in Risky Decisions

Martin Kocher, Julius Pahlke and Stefan Trautmann

Discussion Papers in Economics from University of Munich, Department of Economics

Abstract: 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.

Keywords: time pressure; risky decisions; risk aversion; loss aversion; gain seeking; aspiration level (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Date: 2011-04
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://epub.ub.uni-muenchen.de/12221/1/Kocher_Pah ... _Risky_Decisions.pdf (application/pdf)

Related works:
Journal Article: Tempus Fugit: Time Pressure in Risky Decisions (2013)
Working Paper: Tempus Fugit: Time pressure in risky decisions (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenec:12221

Access Statistics for this paper

More papers in Discussion Papers in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().