Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62355
Authors: 
Cheung, Stephen L.
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6762
Abstract: 
Andreoni and Sprenger (in press) report evidence that distinct utility functions govern choices under certainty and risk. I investigate the robustness of their result to the experimental design. I find that the effect disappears completely when a multiple price list is used instead of a convex time budget design. Also, the effect is reduced by half when sooner and later payment risks are realized using a single lottery instead of two independent lotteries. The result is thus partially driven by intertemporal diversification, suggesting an explanation in terms of concavity of the intertemporal, and not only the atemporal, utility function.
Subjects: 
intertemporal choice
risk and certainty
convex time budget
multiple price list
JEL: 
C91
D03
D81
D90
Document Type: 
Working Paper

Files in This Item:
File
Size
476.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.