Abstract
Time pressure has been found to impact decision making in various ways, but studies on the effects time pressure in risky financial gambles have been largely limited to description-based decision tasks and to the gain domain. We present two experiments that investigated the effect of time pressure on decisions from description and decisions from experience, across both gain and loss domains. In description-based choice, time pressure decreased risk seeking for losses, whereas for gains there was a trend in the opposite direction. In experience-based choice, no impact of time pressure was observed on risk-taking, suggesting that time constraints may not alter attitudes towards risk when outcomes are learned through experience.
Highlights
IntroductionOften judgments and decisions are made without the benefit of unlimited periods of time for deliberation [1]
In Experiment 1, we focused on risk-taking as a function of time pressure and choice framing. To examine how these factors interacted with the probabilistic structure of the choice problems, we analyzed the effects of pdesirable and payoff variability on risk-taking
Gain trials showed a trend in the opposite direction
Summary
Often judgments and decisions are made without the benefit of unlimited periods of time for deliberation [1]. Time pressure is experienced when the time to make a judgment or decision is constrained. As time pressure increases decisions may change—because there is less time to learn about choice options, because different aspects of the choice become more salient, or because different cognitive strategies are employed. This is especially important in areas such as financial decision-making—the buying or selling of goods or trading on the stock market—where outcomes may be uncertain and opportunities may be time-sensitive. One topic that remains understudied is how time pressure impacts decision-making regarding monetary outcomes, in choices where outcomes are risky and cannot be predicted in advance
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