Distinguishing three effects of time pressure on risk taking: Choice consistency, risk preference, and strategy selection

• Published in: Journal of behavioral decision making Vol. 34; no. 4; pp. 541 - 554
• Main Authors: Olschewski, Sebastian, Rieskamp, Jörg
• Format: Journal Article
• Language: English
• Published: Chichester Wiley Periodicals Inc 01.10.2021
• Subjects: Bayesian analysis; Decision making; finite‐mixture model; gamble complexity; Pressure; random utility; Risk preferences; Risk taking; risky choice; time pressure
• ISSN: 0894-3257; 1099-0771
• DOI: 10.1002/bdm.2228

Quick decision making under risk is ubiquitous in modern times, yet its consequences are not fully understood. Time pressure might change people's risk preferences, lead to less consistent choices, or change people's decision strategy. With the present work, we make the novel contribution of testing all hypotheses against each other in a unifying hierarchical Bayesian model. In two studies, participants decided repeatedly between two risky gambles either with or without high time pressure. We found a significant increase in risky choices under time pressure. With modeling, we show that time pressure decreased choice consistency but did not systematically affect people's risk preferences. In addition, the number of participants using simple, noncompensatory strategies increased slightly under time pressure. Finally, participants did not systematically choose easier gambles more often under time pressure. Thus, a reliable analysis of the effect of time pressure on preferential choice requires a model framework that allows for the distinction between the various effects time pressure can have.