Cognitive ability, risk preferences and errors

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ID: 333450
2026
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Abstract
Abstract In this paper we examine the link between cognitive ability, risk preferences and the errors that people make. We build a unique dataset that contains almost 260,000 decisions made under risk in a variety of tasks by approximately 13,000 individuals, with each person having completed a test designed explicitly to measure their cognitive ability. Our analysis suggests that intelligence has (1) no impact on risk preferences and (2) a robust link to errors. Our results have implications for the development of theories that seek to explain the impact of cognitive ability on decision making.
Reference Key
openalex_W7223229860 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Michalis Drouvelis, Pearce Graeme
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Journal the economic journal
Year 2026
DOI
10.1093/ej/ueag135
URL
https://doi.org/10.1093/ej/ueag135
Keywords Keywords not found

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