We study preferences over lotteries in which both the prize and the payment date are uncertain. In particular, atime lotteryis one in which the prize is fixed but the date is random. With Expected Discounted Utility, individuals must be riskseekingover time lotteries (RSTL). In an incentivized...

Many violations of the independence axiom of expected utility can be traced to subjects' attraction to risk‐free prospects. The key axiom in this paper, negative certainty independence ([Dillenberger, 2010]), formalizes this tendency. Our main result is a utility representation of all...