Journal
MANAGEMENT SCIENCE
Volume 63, Issue 2, Pages 519-527Publisher
INFORMS
DOI: 10.1287/mnsc.2015.2349
Keywords
utility preference; decision analysis; economics; behavior and behavioral decision making; probability
Funding
- Social Sciences and Humanities Research Council of Canada [SSHRC 430-2014-00068]
Ask authors/readers for more resources
Three studies explored the effects of uncertainty on people's time preferences for financial gains and losses. In general, individuals seek to avoid uncertainty in situations of intertemporal choice. While holding the expected value of payouts constant, participants preferred immediate gains and losses if the future was uncertain, and preferred future gains and losses if the present was uncertain. This pattern of preferences is incompatible with current models of intertemporal choice, in which people should consistently prefer to have gains now and losses later. This pattern of uncertainty avoidance is also not explained by prospect theory models, which predict risk seeking for losses. We discuss these findings in relation to previous literature.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available