Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion

Detalhes bibliográficos
Autor(a) principal: Almeida, Sergio
Data de Publicação: 2019
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: https://periodicos.fgv.br/rbe/article/view/19229
Resumo: We study how the use of real and hypothetical choices to elicit risk preferences affect the statistical relationship between cognitive ability and risk aversion. Our experimental results suggest that such association 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. But this holds only when choices involve hypothetical payoffs. When choices are real, this correlation is found insignificant. Results are robust to using alternative measures of cognitive ability.
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spelling Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversioncognitive abilityrisk-preference elicitationrisk preferenceshypothetical and real choicesincentivesWe study how the use of real and hypothetical choices to elicit risk preferences affect the statistical relationship between cognitive ability and risk aversion. Our experimental results suggest that such association 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. But this holds only when choices involve hypothetical payoffs. When choices are real, this correlation is found insignificant. Results are robust to using alternative measures of cognitive ability.EGV EPGE2019-12-19info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticlesArtigosapplication/pdfhttps://periodicos.fgv.br/rbe/article/view/19229Revista Brasileira de Economia; Vol. 73 No. 4 (2019): OUT-DEZ; 413-434Revista Brasileira de Economia; v. 73 n. 4 (2019): OUT-DEZ; 413-4341806-91340034-7140reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGVenghttps://periodicos.fgv.br/rbe/article/view/19229/77245Almeida, Sergioinfo:eu-repo/semantics/openAccess2019-12-19T18:28:55Zoai:ojs.periodicos.fgv.br:article/19229Revistahttps://periodicos.fgv.br/rbe/https://periodicos.fgv.br/rbe/oai||rbe@fgv.br1806-91340034-7140opendoar:2024-03-06T13:03:40.745241Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)true
dc.title.none.fl_str_mv Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
title Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
spellingShingle Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
Almeida, Sergio
cognitive ability
risk-preference elicitation
risk preferences
hypothetical and real choices
incentives
title_short Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
title_full Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
title_fullStr Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
title_full_unstemmed Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
title_sort Do as I Do, Not as I Say: Incentivization and the Relationship Between Cognitive Ability and Risk Aversion
author Almeida, Sergio
author_facet Almeida, Sergio
author_role author
dc.contributor.author.fl_str_mv Almeida, Sergio
dc.subject.por.fl_str_mv cognitive ability
risk-preference elicitation
risk preferences
hypothetical and real choices
incentives
topic cognitive ability
risk-preference elicitation
risk preferences
hypothetical and real choices
incentives
description We study how the use of real and hypothetical choices to elicit risk preferences affect the statistical relationship between cognitive ability and risk aversion. Our experimental results suggest that such association 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. But this holds only when choices involve hypothetical payoffs. When choices are real, this correlation is found insignificant. Results are robust to using alternative measures of cognitive ability.
publishDate 2019
dc.date.none.fl_str_mv 2019-12-19
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Articles
Artigos
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.fgv.br/rbe/article/view/19229
url https://periodicos.fgv.br/rbe/article/view/19229
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://periodicos.fgv.br/rbe/article/view/19229/77245
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv EGV EPGE
publisher.none.fl_str_mv EGV EPGE
dc.source.none.fl_str_mv Revista Brasileira de Economia; Vol. 73 No. 4 (2019): OUT-DEZ; 413-434
Revista Brasileira de Economia; v. 73 n. 4 (2019): OUT-DEZ; 413-434
1806-9134
0034-7140
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
_version_ 1798943115144331264

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