Publication: The missing link: unifying risk taking and time discounting
The missing link: unifying risk taking and time discounting
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Epper, T., & Fehr-Duda, H. (2018). The missing link: unifying risk taking and time discounting (No. 96; Working Paper Series / Department of Economics).
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Standard economic models view risk taking and time discounting as two independent dimensions of decision makers' behavior. However, mounting experimental evidence demonstrates the existence of robust and systematic interaction effects. There are striking parallels in patterns of risk taking and time discounting behavior, which suggests that there is a common underlying force driving these interactions. Here we show that decision makers' anticipation of something going wrong in the future conjointly with their proneness to probability
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Epper, T., & Fehr-Duda, H. (2018). The missing link: unifying risk taking and time discounting (No. 96; Working Paper Series / Department of Economics).
