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DOI:10.1287/MNSC.37.7.770 - Corpus ID: 154790167
@article{Prelec1991DecisionMO, title={Decision making over time and under uncertainty: a common approach}, author={Drazen Prelec and George Loewenstein}, journal={Management Science}, year={1991}, volume={37}, pages={770-786}, url={https://api.semanticscholar.org/CorpusID:154790167}}- D. Prelec, G. Loewenstein
- Published 1 July 1991
- Economics
- Management Science
This paper considers a number of parallels between risky and intertemporal choice. We begin by demonstrating a one-to-one correspondence between the behavioral violations of the respective normative theories for the two domains (i.e., expected utility and discounted utility models). We argue that such violations (or preference reversals) are broadly consistent with three propositions about the weight that an attribute receives in both types of multiattribute choice. Specifically, it appears…
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606 Citations
- M. ScholtenD. Read
- 2011
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Two comparative models of intertemporal choice have recently been proposed as an alternative to the hyperbolic discounting model. One, the interval discounting model, retains the notion that…
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The intertemporal tradeoffs made by most persons appear inconsistent when viewed through the lens of the standard time-discounting model. At different times and in different decision contexts, the…
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- Jonathan W. LelandMark Schneider
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We propose a comparative model of decision making under risk, uncertainty, and time, in which large differences in payoffs and probabilities or dates of receipt are perceived as salient and…
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Psychology
It is shown that a model that allows for the subjective evaluation of a fixed now/certain option to change as a function of the delayed/risky option with which it is paired provides the best account of the combined choice and response time (RT) data.
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Psychology
In two experiments, we demonstrate that despite indicating indifference when probed about risk or delay in isolation, when forced to explicitly trade-off between the two, participants prefer delayed…
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- Thomas EpperHelga Fehr-Duda
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Economics, Psychology
Journal of the European Economic Association
Standard economic models view risk taking and time discounting as two independent dimensions of decision making. However, mounting experimental evidence demonstrates striking parallels in patterns…
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- PDF
- M. ScholtenD. Read
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Economics
The delay-speedup asymmetry is that a positive outcome is discounted more, and a negative outcome is discounted less, when it is delayed than when it is “sped up” over the same interval. To account…
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- Mark Schneider
- 2016
Economics, Psychology
The Discounted Expected Utility model has been a major workhorse for analyzing individual behavior for over half a century. However, it cannot account for evidence that risk interacts with time…
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