Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87686
Authors: 
Butler, Jeffrey V.
Guiso, Luigi
Jappelli, Tullio
Year of Publication: 
2013
Series/Report no.: 
CFS Working Paper 2013/13
Abstract: 
Prior research suggests that those who rely on intuition rather than effortful reasoning when making decisions are less averse to risk and ambiguity. The evidence is largely correlational, however, leaving open the question of the direction of causality. In this paper, we present experimental evidence of causation running from reliance on intuition to risk and ambiguity preferences. We directly manipulate participants' predilection to rely on intuition and find that enhancing reliance on intuition lowers the probability of being ambiguity averse by 30 percentage points and increases risk tolerance by about 30 percent in the experimental sub-population where we would a priori expect the manipulation to be successful (males).
Subjects: 
Risk Aversion
Ambiguity Aversion
Decision Theory
Dual Systems
Intuitive Thinking
JEL: 
D81
D83
Document Type: 
Working Paper

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