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Sleepiness, choice consistency, and risk preferences

Author

Listed:
  • Marco Castillo

    () (Texas A & M University)

  • David L. Dickinson

    () (Appalachian State University
    IZA
    ESI, Chapman University)

  • Ragan Petrie

    () (Texas A & M University)

Abstract

Abstract We investigate the consistency and stability of individual risk preferences by manipulating cognitive resources. Participants are randomly assigned to an experiment session at a preferred time of day relative to their diurnal preference (circadian matched) or at a non-preferred time (circadian mismatched) and choose allocations between two risky assets [using the Choi et al. (Am Econ Rev 27(5):1921–1938, 2007), design]. We find that choices of circadian matched and mismatched subject are statistically similar in terms of satisfying basic requirements for preference consistency. However, mismatched subjects tend to choose riskier asset bundles.

Suggested Citation

  • Marco Castillo & David L. Dickinson & Ragan Petrie, 2017. "Sleepiness, choice consistency, and risk preferences," Theory and Decision, Springer, vol. 82(1), pages 41-73, January.
  • Handle: RePEc:kap:theord:v:82:y:2017:i:1:d:10.1007_s11238-016-9559-7
    DOI: 10.1007/s11238-016-9559-7
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    References listed on IDEAS

    as
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    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David L. Dickinson, 2018. "An exploratory study of how sleep restriction impacts choice in two classic normal form games," Working Papers 18-02, Department of Economics, Appalachian State University.
    2. repec:eee:gamebe:v:115:y:2019:i:c:p:48-59 is not listed on IDEAS
    3. Dickinson, David L. & Chaudhuri, Ananish & Greenaway-McGrevy, Ryan, 2017. "Trading While Sleepy? Circadian Mismatch and Excess Volatility in a Global Experimental Asset Market," IZA Discussion Papers 10984, Institute of Labor Economics (IZA).
    4. Drichoutis, Andreas C. & Nayga, Rodolfo, 2017. "Economic rationality under cognitive load," MPRA Paper 81111, University Library of Munich, Germany.
    5. repec:eee:jeborg:v:157:y:2019:i:c:p:580-601 is not listed on IDEAS
    6. Dickinson, David L. & McElroy, Todd, 2019. "Bayesian versus heuristic-based choice under sleep restriction and suboptimal times of day," Games and Economic Behavior, Elsevier, vol. 115(C), pages 48-59.
    7. Hardardottir, Hjördis, 2019. "Many Balls in the Air Make Time Fly: The Effect of Multitasking on Time Perception and Time Preferences," Working Papers 2019:11, Lund University, Department of Economics, revised 17 Sep 2019.

    More about this item

    Keywords

    Risk aversion; Rationality; Cognitive resource depletion; Choice consistency; Sleepiness;

    JEL classification:

    • 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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