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Portrait of Erik Wengström. Photo.

Erik Wengström

Professor, Director of Doctoral studies, Department of Economics

Portrait of Erik Wengström. Photo.

Measures of cognitive ability and choice inconsistency

Author

  • Helene Willadsen
  • Sarah Zaccagni
  • Marco Piovesan
  • Erik Wengström

Summary, in English

Cognitive skills affect individual choices. Researchers commonly use Raven's Progressive Matrices (RPM) tests and the Cognitive Reflection Test (CRT) to assess the relationship between cognitive abilities and economic decision making. In this paper, we study the relationship between these measures, and investigate the extent to which they are correlated and whether they are best described as substitutes or complements. Combining a sample of 686 children and a sample of 2,332 adults, we compare individual performances in the RPM test and CRT test. First, we report a significant positive correlation between the two measures of 0.3. Second, we document that performance in both the RPM test and CRT are significant predictors of behavioral inconsistency observed in incentivized time and risk preference elicitation tasks for children and risk preference elicitation task for adults.

Department/s

  • Centre for Retail Research at Lund University
  • Department of Economics

Publishing year

2024-04

Language

English

Pages

495-506

Publication/Series

Journal of Economic Behavior and Organization

Volume

220

Document type

Journal article

Publisher

Elsevier

Topic

  • Psychology (excluding Applied Psychology)

Keywords

  • Cognitive Reflection
  • Cognitive Skills
  • Inconsistent Behavior
  • Intelligence
  • Raven Progressive Matrices
  • Risk Preference
  • Time Preference

Status

Published

ISBN/ISSN/Other

  • ISSN: 0167-2681