How Do We Evaluate Future Gambles? Experimental Evidence on Path Dependency in Risky Intertemporal Choice

This study reports three experiments which demonstrate path dependency in risky intertemporal choice. When evaluating a future gamble, individuals first assess the present value of the gamble (time discounting) and then they determine a certainty equivalent (probability discounting).

ÖNCÜLER, A. and ONAY, S. (2009). How Do We Evaluate Future Gambles? Experimental Evidence on Path Dependency in Risky Intertemporal Choice. Journal of Behavioral Decision Making, 22(3), pp. 280-300.