New paper: "Measures of cognitive ability and choice inconsistency"
DISTRACT researcher Helene Willadsen and co-authors Sarah Zaccagni, Marco Piovesan, and Erik Wengström have just published the article "Measures of cognitive ability and choice inconsistency" in Journal of Economic Behavior & Organization. In the paper they study the relationship between cognitive abilities and economic decision making, 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, the researchers compare individual performances in the RPM test and CRT test. They find a significant positive correlation between the two measures of 0.3, and 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 a risk preference elicitation task for adults.