Risk, time pressure, and selection effects

Author(s)
Martin G. Kocher, David Schindler, Stefan T. Trautmann, Yilong Xu
Abstract

Time pressure is a central aspect of economic decision making nowadays. It is therefore natural to ask how time pressure affects decisions, and how to detect individual heterogeneity in the ability to successfully cope with time pressure. In the context of risky decisions, we ask whether a person’s performance under time pressure can be predicted by measurable behavior and traits, and whether such measurement itself may be affected by selection issues. We find that the ability to cope with time pressure varies significantly across decision makers, leading to selected subgroups that differ in terms of their observed behaviors and personal traits. Moreover, measures of cognitive ability and intellectual efficiency jointly predict individuals’ decision quality and ability to keep their decision strategy under time pressure.

Organisation(s)
Vienna Center for Experimental Economics, Department of Economics
External organisation(s)
IHS - Institut für Höhere Studien und wissenschaftliche Forschung, Tilburg University, Ruprecht-Karls-Universität Heidelberg
Journal
Experimental Economics
Volume
22
Pages
216–246
ISSN
1386-4157
DOI
https://doi.org/10.1007/s10683-018-9576-1
Publication date
05-2018
Peer reviewed
Yes
Austrian Fields of Science 2012
Behavioural economics, Microeconomics
Keywords
ASJC Scopus subject areas
Portal url
https://ucris.univie.ac.at/portal/en/publications/risk-time-pressure-and-selection-effects(af68928f-3374-4274-9eb0-bd68a18dc163).html