Stephen V. Burks|Jeffrey P. Carpenter|Lorenz Göette|Aldo Rustichini
Cognitive skills affect economic preferences, strategic behavior, and job attachment
University of Minnesota Morris|Middlebury College|University of Geneva|University of Minnesota|University of Cambridge
economic analysis far said little individuals cognitive skills cs related individuals economic preferences different choice domains risk taking saving preferences different domains related using sample 1000 trainee truckers report three findings first strong significant relationship individuals cs preferences individuals better cs patient short longrun better cs also associated greater willingness take calculated risks second cs predict social awareness choices sequential prisoners dilemma game subjects better cs accurately forecast others behavior differentiate behavior second mover strongly depending firstmovers choice third cs particular ability plan strongly predict perseverance job setting substantial financial penalty early exit consistent cs common factor preferences behaviors find strong pattern correlation among results taken together theoretical explanation offer relationships find suggest higher cs systematically affect preferences choices ways favor economic success