Publication: Risk in Time: The Intertwined Nature of Risk Taking and Time Discounting
Risk in Time: The Intertwined Nature of Risk Taking and Time Discounting
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Epper, T. F., & Fehr-Duda, H. (2024). Risk in Time: The Intertwined Nature of Risk Taking and Time Discounting. Journal of the European Economic Association, 22(1), 310–354. https://doi.org/10.1093/jeea/jvad041
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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 of risk taking and time discounting behavior and systematic interaction effects, which suggests that there may be common underlying forces driving these interactions. Here, we show that the inherent uncertainty associated with future prospects together with individuals’ proneness to probability weighting generates a unifying framework for ex
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Epper, T. F., & Fehr-Duda, H. (2024). Risk in Time: The Intertwined Nature of Risk Taking and Time Discounting. Journal of the European Economic Association, 22(1), 310–354. https://doi.org/10.1093/jeea/jvad041
