Preferences on discounting under time risk

This paper examines the linkages between different aspects of agent attitudes toward risk in the presence of time risk. We show that these linkages are in different directions and depend on very mild conditions. Moreover our results imply that some "combinations" of aspects of preferences toward risk are incoherent and provide arguments in favour of preferences exhibiting risk-seeking, prudent and intemperate discounting, at least in the long run and for anti-mixed risk-averse discount functions. This also suggests that, in the presence of risky time, agents usually prefer "combining good with good" rather than "combining good with bad". Lastly, applications to changes in risk of different orders and to investments under delayed risks are provided.