Thomas Dohmen|Armin Falk|David Huffman|Uwe Sunde
On the Relationship between Cognitive Ability and Risk Preference
University of Bonn|BRIQ Institute on Behavior and Inequality|University of Bonn|University of Pittsburgh
paper focus relationship cognitive ability decisionmaking risk uncertainty taken whole research indicates cognitive ability associated risktaking behavior various contexts life domains including incentivized choices lotteries controlled environments behavior nonexperimental settings selfreported tendency take risks one pattern emerges frequently studies cognitive ability tends positively correlated avoidance harmful risky situations tends negatively correlated risk aversion advantageous situations conclude discussing perspectives future research particular scope development richer sets elicitation instruments measurement across wider range concepts