Cognitive ability and risk aversion: A systematic review and meta analysis
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Cognitive ability and risk aversion: A systematic review and meta analysis. / Lilleholt, Lau.
I: Judgment and Decision Making, Bind 14, Nr. 3, 31.05.2019, s. 234-279.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Cognitive ability and risk aversion: A systematic review and meta analysis
AU - Lilleholt, Lau
PY - 2019/5/31
Y1 - 2019/5/31
N2 - Are highly intelligent people less risk averse? Over the last two decades scholars have argued the existence of a negative relationship between cognitive ability and risk aversion. Although numerous studies support this, the link between cognitive ability and risk aversion has not been found consistently. To shed new light on this topic, a systematic review and meta-analysis was conducted. A total of 97 studies were identified and included for meta-analysis in the domain of gains (N=90,723), 41 in the mixed domain (N=50,936), and 12 in the domain of losses (N=4,544). Results indicate that there exists a weak, but significant negative relationship between cognitive ability and risk aversion in the domain of gains. However, no relationship was observed in the mixed domain or in the domain of losses. Several meta-regressions were performed to investigate the influence of moderator variables. None of the moderator variables were found to consistently influence the relationship between cognitive ability and risk aversion across the domain of gains, mixed and losses. Moreover, no significant difference was observed between males and females across all three domains. In conclusion, this systematic review and meta-analysis provides new evidence that the relationship between cognitive ability and risk aversion is domain specific and not as strong as suggested by some previous studies.
AB - Are highly intelligent people less risk averse? Over the last two decades scholars have argued the existence of a negative relationship between cognitive ability and risk aversion. Although numerous studies support this, the link between cognitive ability and risk aversion has not been found consistently. To shed new light on this topic, a systematic review and meta-analysis was conducted. A total of 97 studies were identified and included for meta-analysis in the domain of gains (N=90,723), 41 in the mixed domain (N=50,936), and 12 in the domain of losses (N=4,544). Results indicate that there exists a weak, but significant negative relationship between cognitive ability and risk aversion in the domain of gains. However, no relationship was observed in the mixed domain or in the domain of losses. Several meta-regressions were performed to investigate the influence of moderator variables. None of the moderator variables were found to consistently influence the relationship between cognitive ability and risk aversion across the domain of gains, mixed and losses. Moreover, no significant difference was observed between males and females across all three domains. In conclusion, this systematic review and meta-analysis provides new evidence that the relationship between cognitive ability and risk aversion is domain specific and not as strong as suggested by some previous studies.
KW - Faculty of Social Sciences
KW - risk aversion
KW - cognitive ability
KW - risk preferences
KW - intelligence
KW - meta-analysis
M3 - Journal article
VL - 14
SP - 234
EP - 279
JO - Judgment and Decision Making
JF - Judgment and Decision Making
SN - 1930-2975
IS - 3
ER -
ID: 219534491