Decision Sciences
8 years ago

Time pressure flips risk preferences: people become risk-seekers over gains.

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Organizational Behavior and Human Decision Processes
Time pressure reverses risk preferences
Najam U. Saqib, Eugene Y. Chan

Paper Summary

Time pressure can make people take more risks when it comes to gains and play it safe when it comes to losses. This is because when we're in a hurry, we focus on the best possible outcome for gains and the worst possible outcome for losses, making us more willing to take risks for gains and avoid risks for losses. This goes against the usual behavior of being cautious with gains and seeking risks with losses.

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