EconPapers    
Economics at your fingertips  
 

Risk Aversion Relates to Cognitive Ability: Preferences Or Noise?

Ola Andersson, Hakan Holm (), Jean-Robert Tyran () and Erik Wengström ()

Journal of the European Economic Association, 2016, vol. 14, issue 5, 1129-1154

Abstract: Recent experimental studies suggest that risk aversion is negatively related to cognitive ability. In this paper we report evidence that this relation may be spurious. We recruit a large subject pool drawn from the general Danish population for our experiment. By presenting subjects with choice tasks that vary the bias induced by random choices, we are able to generate both negative and positive correlations between risk aversion and cognitive ability. Our results suggest that cognitive ability is related to random decision making rather than to risk preferences.

JEL-codes: C81 D91 D12 D81 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1111/jeea.12179 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Journal Article: RISK AVERSION RELATES TO COGNITIVE ABILITY: PREFERENCES OR NOISE? (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jeurec:v:14:y:2016:i:5:p:1129-1154.

Access Statistics for this article

More articles in Journal of the European Economic Association from European Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2019-07-22
Handle: RePEc:oup:jeurec:v:14:y:2016:i:5:p:1129-1154.