Risk Preferences Are Not Time Preferences: On the Elicitation of Time Preference under Conditions of Risk: Comment

Stephen Cheung

American Economic Review, 2015, vol. 105, issue 7, 2242-60

Abstract: Andreoni and Sprenger (2012a, b) report evidence that distinct utility functions govern choices under certainty and risk. I investigate the robustness of this result to the experimental design. I find that the effect disappears completely when a multiple price list instrument is used instead of a convex time budget design. Alternatively, the effect is reduced by half when sooner and later payment risks are realized using a single lottery instead of two independent lotteries. The result is thus at least partially driven by intertemporal diversification, supporting an explanation in terms of concavity of the intertemporal, and not only atemporal, utility function. (JEL C91, D81, D91)

JEL-codes: C91 D81 D91 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/aer.20120946
References: Add references at CitEc
Citations: View citations in EconPapers (47)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.20120946 (application/pdf)
https://www.aeaweb.org/aer/ds/10507/20120946_ds.zip (application/zip)
https://www.aeaweb.org/aer/data/10507/20120946_data.zip (application/zip)
https://www.aeaweb.org/aer/app/10507/20120946_app.pdf (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
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:aea:aecrev:v:105:y:2015:i:7:p:2242-60

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().