The Relationship between Economic Preferences and Psychological Personality Measures

Becker, Anke; Deckers, Thomas; Dohmen, Thomas; Falk, Armin; Kosse, Fabian

doi:10.2139/ssrn.2042458

Cited by 34 publications

(51 citation statements)

References 19 publications

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“…We follow Nosić and Weber (2010) and see risk-taking behavior as a function of risk attitude (i.e., trade-off between risk and return), risk perception (i.e., subjective perception regarding the risk of financial assets), and return expectations (i.e., subjective expectations regarding the return of financial assets) 1 . Recent studies in the context of economics and psychology focus on the influence of personality traits on risk-taking behavior (Nicholson, Soane, Willman, & Fenton-O’Creevy, 2005) and risk attitude (Becker, Deckers, Dohmen, Falk, & Kosse, 2012; Borghans, Golsteyn, Heckman, & Meijers, 2009; Lauriola & Levin, 2001; Pan & Statman, 2013; Rustichini, DeYoung, Anderson, & Burks, 2012). However, to the best of our knowledge, there are no contributions that investigate the influence of personality traits on risk attitude, risk perception, and return expectations in investment decisions simultaneously.…”

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confidence: 99%

The relationship of extraversion and neuroticism with risk attitude, risk perception, and return expectations.

Oehler

Wedlich

2018

Journal of Neuroscience, Psychology, and Economics

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We analyze the influence of individuals’ degree of extraversion and neuroticism on the determinants of their risk-taking behavior in investment decisions. As there are no studies that investigate the influence of personality traits on risk attitude, risk perception, and return expectations in investment decisions simultaneously, we provide a meaningful contribution to existing literature. We use a unique data set that contains 342 undergraduate business students’ questionnaire responses measuring the students’ degree of extraversion and neuroticism as well as their risk attitude, risk perception, and return expectations. Therefore, we are able to identify which determinants of risk-taking are influenced by extraversion and neuroticism and induce individuals to take investment risks. We find that more extraverted individuals are less risk averse, whereas more neurotic subjects are more risk averse. Beside these results, we find that more conscientious individuals are more risk averse and perceive investments in assets as more risky. Further research should consider individuals’ personality as an influence factor on the determinants of risk-taking behavior in investment decisions.

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confidence: 99%

The relationship of extraversion and neuroticism with risk attitude, risk perception, and return expectations.

Oehler

Wedlich

2018

Journal of Neuroscience, Psychology, and Economics

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“…To account for this variability, an increasing number of investigations have considered basic personality traits as predictors of behavior in economic games and social dilemmas (e.g., Becker, Deckers, Dohmen, Falk, & Kosse, 2012; Ferguson, Heckman, & Corr, 2011; Glöckner & Hilbig, 2012; Hirsh & Peterson, 2009; Kurzban & Houser, 2001; Lönnqvist, Walkowitz, Wichardt, Lindeman, & Verkasalo, 2009). Clearly, given the wide range of real-life situations on which these paradigms are modeled (Falk & Heckman, 2009), one would expect that corresponding individual differences would be covered by basic trait models.…”

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confidence: 99%

Personality and prosocial behavior: Linking basic traits and social value orientations.

Hilbig

Glöckner

Zettler

2014

Journal of Personality and Social Psychology

192

135

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Concerning the dispositional determinants of prosocial behavior and cooperation, work based on the classic 5 personality factors, and especially Agreeableness, has turned out somewhat inconsistent. A clearer picture has emerged from consideration of the HEXACO model of personality--though supported entirely by hypothetical behavior as criterion, so far. Thus, in 2 studies and a reanalysis, we investigated "actual behavior" in the form of individually and socially consequential distribution decisions. As expected, HEXACO Honesty-Humility consistently predicted prosocial behavior, including a theory-consistent pattern on the facet level. Importantly, this pattern might explain why five-factor Agreeableness has only sometimes been found to account for prosocial behavior. Indeed, further results indicate that five-factor Agreeableness comprises some aspects that are predictive of prosocial behavior--aspects well covered by HEXACO Honesty-Humility--but also others that play no role for this criterion. As such, the links between five-factor Agreeableness and prosocial behavior are well-covered by HEXACO Honesty-Humility, but not vice versa. Taken together, these findings hint that especially HEXACO Honesty-Humility (and certain aspects of five-factor Agreeableness) account for prosocial behavior--thus explaining previous inconsistencies and providing a more nuanced understanding of the links between basic personality and prosocial or cooperative behavior.

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“…An agreeable person is more empathic and tender-minded and, hence, has a more harmonious communication style allowing partners to realize a mutually beneficial sex life. Furthermore, agreeableness is positively associated with altruism (Becker et al 2012). Thus, an agreeable person should take the partner's needs and desires to a higher degree into account.…”

Section: Implications For the Link Between Big Five Personality Trait...mentioning

confidence: 99%

Big Five personality traits and sex

Jirjahn

Ottenbacher

2022

J Popul Econ

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Sexual well-being plays an important role in the quality of life. Against this background, we provide an economics-based approach to the relationship between the Big Five personality traits and various dimensions of sexuality. From a theoretical viewpoint, personality influences sexual well-being not only by how a person feels about sex, but also by how the person behaves in a sexual relationship. Personality shapes information sharing about sexual preferences, the way dissonant sexual preferences of the partners are handled, and the extent to which a person is committed to promises made to a partner. Using a large representative dataset from Germany, we find that personality traits play a role in a person’s own sexual satisfaction, in (the self-assessment of) fulfilling their partner’s sexual needs and desires, in sexual communication, in actual and desired frequency of sex, and in extradyadic affairs. Conscientiousness contributes to a mutually beneficial sex life and increases a person’s commitment to their partner. The opposite holds true for neuroticism. While extraversion and openness to experience help realize a mutually beneficial sex life, we find no evidence that they have a commitment value. On the contrary, extraversion is associated with lower commitment to the partner. Agreeableness contributes to higher commitment. However, agreeableness appears to make people more reluctant to express their sexual needs and desires.

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The Relationship between Economic Preferences and Psychological Personality Measures

Cited by 34 publications

References 19 publications

The relationship of extraversion and neuroticism with risk attitude, risk perception, and return expectations.

The relationship of extraversion and neuroticism with risk attitude, risk perception, and return expectations.

Personality and prosocial behavior: Linking basic traits and social value orientations.

Big Five personality traits and sex

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