Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/49686 
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dc.contributor.authorSousa, Sergioen
dc.date.accessioned2010-11-18-
dc.date.accessioned2011-09-26T13:24:19Z-
dc.date.available2011-09-26T13:24:19Z-
dc.date.issued2010-
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
dc.language.isoengen
dc.publisher|aThe University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx) |cNottinghamen
dc.relation.ispartofseries|aCeDEx Discussion Paper Series |x2010-17en
dc.subject.jelC91en
dc.subject.jelD01en
dc.subject.jelD80en
dc.subject.jelD00en
dc.subject.ddc330en
dc.subject.keywordcognitive abilityen
dc.subject.keywordrisk preferencesen
dc.subject.keywordfinancial incentivesen
dc.subject.keywordcognitive reflection testen
dc.subject.stwPersönlichkeitspsychologieen
dc.subject.stwKognitionen
dc.subject.stwÖkonomischer Anreizen
dc.subject.stwRisikopräferenzen
dc.titleAre smarter people really less risk averse?-
dc.typeWorking Paperen
dc.identifier.ppn640172652en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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