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The determinants of decision time in an ambiguous context

Author

Listed:
  • Anna Conte

    (Sapienza University of Rome)

  • Gianmarco Santis

    (Sapienza University of Rome)

  • John D. Hey

    (University of York)

  • Ivan Soraperra

    (Max Planck Institute for Human Development)

Abstract

This paper builds on the data from a published paper on behaviour under ambiguity (Conte & Hey, 2013)—henceforth C&H—to explore the determinants of decision time. C&H categorized individual subjects as being of one of four types (of decision-maker)—Expected Utility, Smooth Ambiguity, Rank Dependent and Alpha Expected Utility—by using the decisions of the subjects, but did not look at the decision times of the different types. We take as given the categorization identified by C&H, and explore whether the classification can explain the decision times of the subjects. We investigate whether and why different types take a different amount of time to decide. We explore the effects of various features related to (mainly psychological) theories of the process of decision-making—i.e., experience with the task, complexity, closeness to indifference and similarity of the options. Our results show that different types take a similar time to make their decisions on average, but decision times of different types are explained by different features of the decision task. This paper is the first investigating the heterogeneity of decision times based on a classification of subjects into different types in an ambiguous (rather than risky) decision context.

Suggested Citation

  • Anna Conte & Gianmarco Santis & John D. Hey & Ivan Soraperra, 2023. "The determinants of decision time in an ambiguous context," Journal of Risk and Uncertainty, Springer, vol. 67(3), pages 271-297, December.
    • Handle: RePEc:kap:jrisku:v:67:y:2023:i:3:d:10.1007_s11166-023-09417-z
    DOI: 10.1007/s11166-023-09417-z
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    References listed on IDEAS

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    1. Carlos Alós-Ferrer & Ernst Fehr & Nick Netzer, 2021. "Time Will Tell: Recovering Preferences When Choices Are Noisy," Journal of Political Economy, University of Chicago Press, vol. 129(6), pages 1828-1877.
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    More about this item

    Keywords

    Decision time; Choice under uncertainty; Panel data; Cross-validation;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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