Cognitive Abilities and Behavioral Biases

Arbeitspapier

We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the Cognitive Reflection Test of Frederick (2005) indeed are correlated with lower incidences of the conjunction fallacy, conservatism in updating probabil-ities, and overconfidence. Test scores are also significantly related to subjects' time and risk preferences. We find no influence on anchoring. However, even if biases are lower for people with higher cognitive abilities, they still remain substantial.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper Series ; No. 465

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Micro-Based Behavioral Economics: General‡ ; Information, Knowledge, and Uncertainty: General ; Design of Experiments: Laboratory, Individual
• Thema: behavioral finance ; biases ; cognitive abilities ; cognitive reflection test ; Anlageverhalten ; Verhaltensökonomik ; Kognition ; Entscheidung ; Test

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Oechssler, Jörg ; Roider, Andreas ; Schmitz, Patrick W.
• Ereignis: Veröffentlichung
• (wer): University of Heidelberg, Department of Economics
• (wo): Heidelberg
• (wann): 2009

Weitere Informationen

• DOI: doi:10.11588/heidok.00009463
• Handle: http://hdl.handle.net/10419/127285
• URN: urn:nbn:de:bsz:16-opus-94635
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ