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dc.contributor.authorSousa, Sergioen_US
dc.date.accessioned2010-11-18en_US
dc.date.accessioned2011-09-26T13:24:19Z-
dc.date.available2011-09-26T13:24:19Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/49686-
dc.description.abstractUsing hypothetical lottery choices to measure risk preferences, Frederick (2005) finds that higher cognitive ability is associated with less risk aversion. This paper documents, however, that when using an incentive compatible measure of risk preference, attitudes towards risk are not associated to cognitive ability as measured by Frederick's (2005) three-item cognitive reflection test. This is a new finding that adds weight to the claim that lack of proper financial incentives can sometimes be a source of bias. In addition, we show that this lack of association between risk preferences and cognitive ability is robust to using a broader measure of cognitive ability that takes into account both verbal and non-verbal reasoning skills. Our results suggest the possibility that whether cognitive ability relates to attitudes towards risk is sensitive to instruments used to measure both of them.en_US
dc.language.isoengen_US
dc.publisherCEDEX Nottinghamen_US
dc.relation.ispartofseriesCeDEx discussion paper series 2010-17en_US
dc.subject.jelC91en_US
dc.subject.jelD01en_US
dc.subject.jelD80en_US
dc.subject.jelD00en_US
dc.subject.ddc330en_US
dc.subject.keywordcognitive abilityen_US
dc.subject.keywordrisk preferencesen_US
dc.subject.keywordfinancial incentivesen_US
dc.subject.keywordcognitive reflection testen_US
dc.subject.stwPersönlichkeitspsychologieen_US
dc.subject.stwKognitionen_US
dc.subject.stwÖkonomischer Anreizen_US
dc.subject.stwRisikopräferenzen_US
dc.titleAre smarter people really less risk averse?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn640172652en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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