scholarly journals The Relation between Behavior under Risk and over Time

2020 ◽  
Vol 2 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Anujit Chakraborty ◽  
Yoram Halevy ◽  
Kota Saito
Keyword(s):  
Decision Maker ◽  
Expected Utility ◽  
Ratio Effect ◽  
Present Bias ◽  
Common Ratio ◽  
Future Consumption ◽  
The Common ◽  
Utility Preferences ◽  
Common Ratio Effect ◽  
Over Time

The paper establishes a tight relation between nonstandard behaviors in the domains of risk and time, by considering a decision-maker with non-expected utility preferences who believes that only present consumption is certain while any future consumption is uncertain. We provide the first complete characterizations of the two-way relations between the certainty effect and present bias, and between the common ratio effect and temporal reversals. (JEL D11, D15, D81, D91)

scholarly journals Strotz Meets Allais: Diminishing Impatience and the Certainty Effect: Comment

2011 ◽  
Vol 101 (5) ◽  
pp. 2271-2275 ◽  
Author(s):  
Kota Saito
Keyword(s):  
Hyperbolic Discounting ◽  
Ratio Effect ◽  
Common Ratio ◽  
The Common ◽  
Common Ratio Effect

Halevy (2008) states the equivalence between diminishing impatience (i.e., quasi–hyperbolic discounting) and the common ratio effect. The present paper shows that one way of the equivalence is false and shows the correct and general relationships: diminishing impatience is equivalent to the certainty effect and that strong diminishing impatience (i.e., hyperbolic discounting) is equivalent to the common ratio effect. JEL: D81

How Common Is the Common-Ratio Effect?

2020 ◽  
Author(s):  
P Blavatskyy ◽  
Andreas Ortmann ◽  
Valentyn Panchenko
Keyword(s):  
Ratio Effect ◽  
Common Ratio ◽  
The Common ◽  
Common Ratio Effect

Dynamic Choice and the Common Ratio Effect: an Experimental Investigation

1998 ◽  
Vol 108 (450) ◽  
pp. 1362-1380 ◽  
Author(s):  
Robin Cubitt ◽  
Chris Starmer ◽  
Robert Sugden
Keyword(s):  
Experimental Investigation ◽  
Dynamic Choice ◽  
Ratio Effect ◽  
Common Ratio ◽  
The Common ◽  
Common Ratio Effect

scholarly journals The Common Ratio Effect in Choice, Pricing, and Happiness Tasks

2017 ◽  
Vol 30 (4) ◽  
pp. 976-986
Author(s):  
Mark Schneider ◽  
Mikhael Shor
Keyword(s):  
Ratio Effect ◽  
Common Ratio ◽  
The Common ◽  
Common Ratio Effect
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