Sleepiness, Choice Consistency, And Risk Preferences

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
David L. Dickinson Ph.D., Professor (Creator)
Institution
Appalachian State University (ASU )
Web Site: https://library.appstate.edu/

Abstract: We investigate the consistency and stability of individual risk preferences by manipulating cognitive resources. Participants are randomly assigned to an experiment session at a preferred time of day relative to their diurnal preference (circadian matched) or at a non-preferred time (circadian mismatched) and choose allocations between two risky assets [using the Choi et al. (Am Econ Rev 27(5):1921–1938, 2007), design]. We find that choices of circadian matched and mismatched subject are statistically similar in terms of satisfying basic requirements for preference consistency. However, mismatched subjects tend to choose riskier asset bundles.

Additional Information

Publication
Castillo, M., et al. (2017). "Sleepiness, choice consistency, and risk preferences." Theory and Decision 82(1): 41-73. https://doi.org/10.1007/s11238-016-9559-7. Publisher version of record available at: https://link.springer.com/article/10.1007/s11238-016-9559-7
Language: English
Date: 2016
Keywords
Risk aversion, Rationality, Cognitive resource depletion, Choice consistency, Sleepiness

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