DR@W Forum Online: Peter Kvam (University of Florida)
Apparent preference reversals in risky decision-making, where people will choose a safe option over a risky option but report being willing to pay more for the risky option than the safe option, have raised questions about whether decision-making and pricing measure the same underlying values or utilities. This problem extends to intertemporal choice, where people will choose a smaller/sooner option over a larger/later one but assign a higher price to a larger/later outcome. In this talk, I examine how these apparent preference reversals can be reconciled under a common dynamic model of pricing.
Meeting ID: 954 4427 7861