Eliciting Prospect Theory When Consequences Are Measured in Time Units: “Time Is Not Money”

Mohammed Abdellaoui and Emmanuel Kemel ()

Management Science, 2014, vol. 60, issue 7, 1844-1859

Abstract: We elicited the prospect theory components (utility, probability weighting, and loss aversion) when consequences are expressed as the time dedicated to a specific task or activity. A similar elicitation was performed for monetary consequences to allow an across-attribute (time/money) comparison of the elicited components (at the individual level). We obtained less concave utility and smaller loss aversion for time than for money. Moreover, while the probability weighting was predominantly inverse S -shaped for both attributes, it was less sensitive to probabilities and more elevated for time than for money. This finding implies more optimism for gains and more pessimism for losses. This paper was accepted by Peter Wakker, decision analysis.

Keywords: time risk; expected utility; prospect theory; reference point; utility; probability weighting; decision weights; loss aversion (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.2013.1829 (application/pdf)

Related works:
Working Paper: Eliciting Prospect Theory When Consequences Are Measured in Time Units: "Time Is Not Money" (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:inm:ormnsc:v:60:y:2014:i:7:p:1844-1859

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().