New research reveals hidden connection between risk-taking and time discounting.
Risk taking and time discounting are usually seen as separate in decision making, but new research shows they are connected. By anticipating future problems and how likely they are, people make choices that affect both risk and time. This helps explain why people are more willing to take risks when rewards are delayed, prefer to know outcomes all at once, and value things differently based on timing and certainty. This understanding can shed light on why people sometimes don't get enough or too much insurance.