When time is (not) money: Preliminary guidance on the interchangeability of time and money in laboratory-based risk research

Nathaniel J S Ashby*, Tim Rakow

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)
325 Downloads (Pure)

Abstract

The familiar adage that ‘time is money’ may not be entirely accurate according to research involving hypothetical choice: People’s decisions are less sensitive to temporal expenditures and outcomes than monetary ones. We provide a novel examination of whether similar patterns of risky choice are found for time and money when choices are consequential (i.e. monetary outcomes are obtained and temporal outcomes are experienced) – both for one-shot and repeated choices, over gains and losses. On the aggregate, across decision contexts (described and experienced), choices are similar for time and money. However, on the level of the individual, little relationship between risk preferences for time and money are observed. We discuss the theoretical and practical implications of these findings.

Original languageEnglish
Pages (from-to)1035-1051
JournalJournal of Risk Research
Volume21
Issue number8
Early online date27 Jan 2017
DOIs
Publication statusPublished - 2018

Keywords

  • decisions-from-experience
  • incentivization
  • laboratory risk research
  • loss–gain framing
  • risky choice
  • time delays

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