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COGNITIVE ABILITIES, ANALYTIC COGNITIVE STYLE AND OVERCONFIDENCE: A COMMENTARY ON DUTTLE (2016)

Michał Białek and Artur Domurat

Bulletin of Economic Research, 2018, vol. 70, issue 1, E119-E125

Abstract: In his recent paper, Duttle (2016) showed that individuals with higher cognitive abilities show less overconfidence. In these findings, cognitive abilities were equated with an analytic cognitive style (as measured by a cognitive reflection test, or CRT), although recent works in the field of cognitive psychology suggest separating these two constructs. In particular, it is argued that the analytic cognitive style, but not cognitive abilities, decreases susceptibility to cognitive biases. Analyses of data from Duttle's study support this assertion. Implications for cognitive psychology and behavioural economics are discussed.

Date: 2018
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