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On the Relationship Between Cognitive Ability and Risk Preference

Author

Listed:
  • Dohmen, Thomas

    (University of Bonn and IZA)

  • Falk, Armin

    (briq and University of Bonn)

  • Huffman, David

    (University of Pittsburgh)

  • Sunde, Uwe

    (LMU)

Abstract

This paper focuses on the relationship between cognitive ability and decision making under risk and uncertainty. We begin by clarifying some important distinctions between concepts and measurement of risk preference and cognitive ability and then take stock of what is known empirically on the connections between cognitive ability and measured risk preferences.

Suggested Citation

  • Dohmen, Thomas & Falk, Armin & Huffman, David & Sunde, Uwe, 2018. "On the Relationship Between Cognitive Ability and Risk Preference," Rationality and Competition Discussion Paper Series 76, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:76
    as

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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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