Risk preferences are not time preferences: Comment

Arbeitspapier

Andreoni and Sprenger (in press) report evidence that distinct utility functions govern choices under certainty and risk. I investigate the robustness of their result to the experimental design. I find that the effect disappears completely when a multiple price list is used instead of a convex time budget design. Also, 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 partially driven by intertemporal diversification, suggesting an explanation in terms of concavity of the intertemporal, and not only the atemporal, utility function.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 6762

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Criteria for Decision-Making under Risk and Uncertainty ; Micro-Based Behavioral Economics: General‡
• Subject: intertemporal choice ; risk and certainty ; convex time budget ; multiple price list ; Entscheidung bei Unsicherheit ; Risikopräferenz ; Zeitpräferenz ; Test

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cheung, Stephen L.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/62355
• Last update: 10.03.2025, 11:44 AM CET