This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
American Economic Review: Vol. 99 No. 3 (June 2009)
AER Volume. 99, Issue 3 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
AER Forthcoming Articles
Full-text Article
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
AER Forthcoming Articles
Evolution of Time Preferences and Attitudes toward Risk
Article Citation
Netzer, Nick. 2009. "Evolution of Time Preferences and Attitudes toward Risk."
American Economic Review,
99(3): 937-55.
DOI: 10.1257/aer.99.3.937
DOI: 10.1257/aer.99.3.937
Abstract
This paper explores a general model of the evolution and adaption of hedonic
utility. It is shown that optimal utility will be increasing strongly in regions
where choices have to be made often and decision mistakes have a severe impact
on fitness. Several applications are suggested. In the context of intertemporal
preferences, the model offers an evolutionary explanation for the existence of
conflicting short- and long-run interests that lead to dynamic inconsistency.
Concerning attitudes toward risk, an evolutionary explanation is given for
S-shaped value functions that adjust to the decision maker's environment. (JEL
D81, D83)
Article Full-Text Access
Full-text Article
Authors
Netzer, Nick (Socioeconomic Institute, U Zurich)
JEL Classifications
D81: Criteria for Decision-Making under Risk and Uncertainty
D83: Search; Learning; Information and Knowledge; Communication; Belief
D83: Search; Learning; Information and Knowledge; Communication; Belief
