eprintid: 9463
rev_number: 26
eprint_status: archive
userid: 1
dir: disk0/00/00/94/63
datestamp: 2009-05-12 12:56:59
lastmod: 2016-01-17 12:58:41
status_changed: 2012-08-14 15:29:19
type: workingPaper
metadata_visibility: show
creators_name: Oechssler, Jörg
creators_name: Roider, Andreas
creators_name: Schmitz, Patrick W.
title: Cognitive Abilities and Behavioral Biases
ispublished: pub
subjects: 330
divisions: 181000
keywords: behavioral finance ,  biases ,  cognitive abilities ,  cognitive reflection test
abstract: We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the Cognitive Reflection Test of Frederick (2005) indeed are correlated with lower incidences of the conjunction fallacy, conservatism in updating probabil-ities, and overconfidence. Test scores are also significantly related to subjects' time and risk preferences. We find no influence on anchoring. However, even if biases are lower for people with higher cognitive abilities, they still remain substantial. 
abstract_translated_lang: eng
class_scheme: jel
class_labels: J24, D90, D80, C91
date: 2008
date_type: published
id_scheme: DOI
id_number: 10.11588/heidok.00009463
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0465
ppn_swb: 576916218
own_urn: urn:nbn:de:bsz:16-opus-94635
language: eng
bibsort: OECHSSLERJCOGNITIVEA2008
full_text_status: public
citation:   Oechssler, Jörg ; Roider, Andreas ; Schmitz, Patrick W.  (2008) Cognitive Abilities and Behavioral Biases.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/9463/1/Oechssler_Roider_Schmitz08_dp465.pdf