Risk-seeking or impatient? Disentangling variance and time in hazardous behaviors

Individual observations of risky behaviors present a paradox: individuals who take the most risks in terms hazards (smoking, speeding, sexual behaviors) are also less likely to when it comes innovation, financial or entrepreneurship. Existing theories risk-preferences do not explain these patterns. From simple model, we argue that many decisions involving risk have temporal dimension, and this dimension is often main determinant individual choices. In real life instances, taking amounts damaging individual's capital (whether embodied capital, social reputation, etc.), which would affect her over long period time after decision. evolutionary terms, marginal cost type behavior depends on relative importance future fitness (e.g. horizon). Individuals with short horizons will give degradation their because be paid effectively for shorter time. This approach explains patterns observed across socio-economic groups puts forward new approaches prevent hazardous such as smoking. • show reflect two types preferences “Hazardous behaviors” preference term gains rather than high variance “Venture rewards accounts distribution literature