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Children Base Their Investment on Calculated Pay-Off

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  • Sophie Steelandt
  • Valérie Dufour
  • Marie-Hélène Broihanne
  • Bernard Thierry

Abstract

To investigate the rise of economic abilities during development we studied children aged between 3 and 10 in an exchange situation requiring them to calculate their investment based on different offers. One experimenter gave back a reward twice the amount given by the children, and a second always gave back the same quantity regardless of the amount received. To maximize pay-offs children had to invest a maximal amount with the first, and a minimal amount with the second. About one third of the 5-year-olds and most 7- and 10-year-olds were able to adjust their investment according to the partner, while all 3-year-olds failed. Such performances should be related to the rise of cognitive and social skills after 4 years.

Suggested Citation

  • Sophie Steelandt & Valérie Dufour & Marie-Hélène Broihanne & Bernard Thierry, 2012. "Children Base Their Investment on Calculated Pay-Off," PLOS ONE, Public Library of Science, vol. 7(3), pages 1-8, March.
    • Handle: RePEc:plo:pone00:0033239
    DOI: 10.1371/journal.pone.0033239
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    References listed on IDEAS

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