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Decision making under time pressure, modeled in a prospect theory framework

Author

Listed:
  • Young, Diana L.
  • Goodie, Adam S.
  • Hall, Daniel B.
  • Wu, Eric

Abstract

The current research examines the effects of time pressure on decision behavior based on a prospect theory framework. In Experiments 1 and 2, participants estimated certainty equivalents for binary gains-only bets in the presence or absence of time pressure. In Experiment 3, participants assessed comparable bets that were framed as losses. Data were modeled to establish psychological mechanisms underlying decision behavior. In Experiments 1 and 2, time pressure led to increased risk attractiveness, but no significant differences emerged in either probability discriminability or outcome utility. In Experiment 3, time pressure reduced probability discriminability, which was coupled with severe risk-seeking behavior for both conditions in the domain of losses. No significant effects of control over outcomes were observed. Results provide qualified support for theories that suggest increased risk-seeking for gains under time pressure.

Suggested Citation

  • Young, Diana L. & Goodie, Adam S. & Hall, Daniel B. & Wu, Eric, 2012. "Decision making under time pressure, modeled in a prospect theory framework," Organizational Behavior and Human Decision Processes, Elsevier, vol. 118(2), pages 179-188.
  • Handle: RePEc:eee:jobhdp:v:118:y:2012:i:2:p:179-188
    DOI: 10.1016/j.obhdp.2012.03.005
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    References listed on IDEAS

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    Cited by:

    1. Buckert, Magdalena & Oechssler, Jörg & Schwieren, Christiane, 2017. "Imitation under stress," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 252-266.
    2. Abdulrauf Animashaun & Tarila Iman Tunkarimu & Omkar Dastane, 2016. "Customer Perceived Value Towards Convenience Stores in Malaysia: The Influence on Customer Satisfaction, Loyalty and Retention," Journal of Marketing and Consumer Behaviour in Emerging Markets, University of Warsaw, Faculty of Management, vol. 2(4), pages 4-27.
    3. repec:eee:jouret:v:89:y:2013:i:1:p:105-113 is not listed on IDEAS

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