Cognitive Abilities and Behavioral Biases

Oechssler, Jörg; Roider, Andreas; Schmitz, Patrick W.

doi:10.2139/ssrn.1294555

Cited by 37 publications

(50 citation statements)

References 9 publications

(13 reference statements)

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“…The heterogeneity in the results for deviations from rational behavior depending on the current positional standing in the game in terms of advantage or disadvantage is also reminiscent of findings of reference dependence (Bartling et al, 2015) and observations from risk taking in tournaments (Cabral, 2003;Genakos and Pagliero, 2012). Likewise, the results add to the literature investigating the role of complexity and cognitive load for individual performance (Deck and Jahedi, 2015) and on the relationship between cognitive limitations and behavioral biases (Oechssler et al, 2009).…”

Section: Introductionmentioning

confidence: 54%

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On the Causes and Consequences of Deviations from Rational Behavior

2020

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Section: Introductionmentioning

confidence: 54%

“…Dohmen, 2008), fatigue, or cognitive load (see, e.g. Oechssler et al, 2009;Deck and Jahedi, 2015) within a single framework. In addition to identifying deviations, the results also point at the performance implications and, in particular, the possibility of enhanced performance as consequence of a deviation from the rational benchmark.…”

Section: Resultsmentioning

confidence: 99%

On the Causes and Consequences of Deviations from Rational Behavior

2020

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“…Research focusing on the associations between the CRT scores, time preferences, and risk preferences reveals that people with lower CRT scores are less patient than those with higher CRT scores (Frederick, 2005;Oechssler et al, 2009). The latter are more willing to take risks to achieve gains, especially when the expected value is higher.…”

Section: Dual-process Theories Of Thinking and Sldmentioning

confidence: 99%

“…The latter are more willing to take risks to achieve gains, especially when the expected value is higher. However, those with higher CRT scores are also less likely to take risks when there is a possibility of loss (Frederick, 2005;Oechssler et al, 2009).…”

Section: Dual-process Theories Of Thinking and Sldmentioning

confidence: 99%

How do specific learning disabilities affect time and risk preferences of college students?

Elisha¹,

Rosenboim²,

Krisi³

2022

Journal of Neuroscience, Psychology, and Economics

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This study aims to improve our understanding of the effects of specific learning disabilities (SLD) in adulthood and improve work adjustment by comparing the time and risk preferences of 72 college students with SLD and 75 college students without SLD. Participants answered questionnaires about their time and risk preferences, made bids for two lottery tickets, and took the Cognitive Reflection Test (CRT). The results revealed that the subjective time discount rates of college students with SLD were significantly lower and more realistic, and their CRT scores were significantly higher. No significant difference in risk aversion was found between the two groups of participants. Finally, we discuss the effort exerted by students with SLD and their tendency to use System 2 processes as possible mechanisms for compensating for their cognitive deficits, and the implications of these results for work adjustment.

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“…Scores in the CRT are found to have moderate correlation with performance on Wonderlic Personnel Test [4], heuristics-and-biases tasks [5], incidences of conjunction fallacy [6,7], and susceptibility to some behavioral biases [8], amongst others. From a simplified perspective, these studies suggest that people who tend to think deeply, as may be measured by CRT, are able to make better decisions and solutions to problems.…”

Section: Introductionmentioning

confidence: 95%

Cognitive Reflection Test and the Polarizing Force-Identification Questions in the FCI

Alinea

2020

Preprint

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The set of polarizing force-identification (PFI) questions in the FCI consists of six items all basically asking only one question: the set of forces acting on a given body. Although it may sound trivial, these questions are among the most challenging in the FCI. In this work involving 163 students, we investigate the correlation between student performance on the set of PFI questions and the Cognitive Reflection Test. We find that for both scores in the FCI as a whole and in the PFI questions, the range of values of the Pearson coefficient at 95% confidence interval, is suggestive that cognitive reflection may be one of the contributing factors in the student performance in the FCI. This is consistent with the idea that high level of cognitive reflection may help in eliminating seemingly valid choices (misconceptions) in the FCI that are intuitive from everyday experience or "common sense" but otherwise misleading. The ability to activate System 2 in Dual Process Theory, whether from System 1 or right after reading a physics problem, may contribute in narrowing down the set of prospective valid answers in a given physics problem. Complementary to cognitive reflection are other factors associated with deep understanding of physics whose effects are expected to become more evident with the level of difficulty of a set of physics problems. Given two students with the same level of cognitive reflection, the one with deeper understanding of physics is more likely to get the correct answer. In our analysis, the range of correlation coefficient for the set of PFI questions is downshifted with respect to that for the FCI as a whole. This may be attributed to the more challenging nature of the latter compared to a significant fraction of the remaining questions in the former.

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Cognitive Abilities and Behavioral Biases

Cited by 37 publications

References 9 publications

On the Causes and Consequences of Deviations from Rational Behavior

On the Causes and Consequences of Deviations from Rational Behavior

How do specific learning disabilities affect time and risk preferences of college students?

Cognitive Reflection Test and the Polarizing Force-Identification Questions in the FCI

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