Cognitive load increases risk aversion

Arbeitspapier

We investigate how stable individuals' risk attitudes are with respect to changes in cognitive load. In a laboratory experiment using pairwise lottery choice and a within-subject design, we showthat putting subjects under load via a concurrent working-memory task significantly increases their risk aversion. Subjects made significantly faster choices under load. Regardless of load, they responded faster when choosing the less risky option in safe-risky trials, but not in risky-risky trials. We discuss how these findings relate to both dual-system and unitarysystem theories of decision making.We observe that predictions of both recent dual-system and drift-diffusion models of the decision-making process are confirmed by our data and argue for a convergence of these to-date separate strands of the literature.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 649 Discussion Paper ; No. 2016-011

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Criteria for Decision-Making under Risk and Uncertainty ; Neuroeconomics
• Subject: risk aversion ; cognitive load ; working memory ; dual-system approach ; multiple-system approach ; dual-self model ; drift-diffusion model ; response times

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gerhardt, Holger ; Biele, Guido P. ; Heekeren, Hauke R. ; Uhlig, Harald
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk
• (where): Berlin
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/146180
• Last update: 10.03.2025, 11:42 AM CET