Erik Wengström
Professor, Director of Doctoral studies, Department of Economics
Measures of cognitive ability and choice inconsistency
Author
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