Measuring time and risk preferences in an integrated framework

• 成果类型: Article
• 署名作者: Abdellaoui, Mohammed; Kernel, Emmanuel; Panin, Amma; Vieider, Ferdinand M.
• 署名单位: Hautes Etudes Commerciales (HEC) Paris; Centre National de la Recherche Scientifique (CNRS); University of Oxford; Ghent University
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2019.03.001
• 发表日期: 2019
• 页码: 459-469
• 关键词: Time preferences; risk preferences; rank-dependent utility; present bias

摘要

We investigate time discounting under risk. To this end, we modify a popular multiple price list (MPL) design to elicit time discounting. Structural estimations of model parameters yield several new insights. For one, we find present bias to persist under risk, contrary to some previous evidence from the psychology literature. We further confirm the robustness of inverse-S shaped probability weighting. This is important inasmuch as random choice predicts the opposite shape in our setup. We also show that correcting for probability weighting under risk impacts the assessment of discount rates. Those are systematically underestimated under the commonly used, more restrictive, expected utility. (C) 2019 Elsevier Inc. All rights reserved.