TRADE-OFFS IN CHOICE BETWEEN RISK AND DELAY DEPEND ON MONETARY AMOUNTS

In Experiments 1 and 2, 25 and 48 college students made binary choices between hypothetical money amounts. In Part A, choices were between s mall amounts available with certainty and larger amounts ($10 to $10,0 00) available dth risk. Choices in Part B were between immediate small amounts and delayed larger amounts. As money amount grew, risk aversi on and delay aversion both changed but in opposite ways: Risk aversion grew but delay aversion shrank. Part C of Experiment 1 pitted risky a mounts against delayed amounts, and its results were consistent with t hose of Parts A and B. Equivalences of particular risks and delays dep ended on the particular monetary amounts to which they attached. In Ex periment 3, 20 college students made binary choices between money amou nts, knowing that they would actually receive some of the selections t hey made. In Part A, choices were between certain small amounts and ri sky larger amounts ($1 and $10). Choice problems in Part B were betwee n immediate small amounts and delayed receipt of $1 or $10. The result s were like those of Experiment 1, though weaker. These results argue against models of choice that posit an equivalence of risk and delay t hat is independent of monetary amount.