Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
| Autor: | Sergio Almeida |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
risk-preferences
Risk aversion hypothetical and real choices incentives 05 social sciences Cognitive ability Cognition Affect (psychology) Correlation Incentive Economics as a science 0502 economics and business 050207 economics Psychology Association (psychology) General Economics Econometrics and Finance HB71-74 Cognitive psychology risk-preference elicitation |
| Zdroj: | Revista Brasileira de Economia, Vol 73, Iss 4, Pp 413-434 (2020) Revista Brasileira de Economia v.73 n.4 2019 Revista Brasileira de Economia Fundação Getulio Vargas (FGV) instacron:FGV |
| ISSN: | 1806-9134 |
| Popis: | We study the relationship between cognitive ability and risk aversion under real and hypothetical choice conditions. Our experimental results suggest that the statistical relationship between cognitive ability and risk aversion is sensitive to incentive conditions of the choice problems used to elicit risk preferences. Individuals in the upper tail of the cognitive ability distribution are willing to take more risks. However, this holds only when choices involve hypothetical payoffs. When choices envolve monetary incentives, this correlation is not significant. Results are robust to using alternative measures of cognitive ability. |
| Databáze: | OpenAIRE |
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