Poverty As Helplessness: How Loss of Control Affects Impulsivity and Risk-Taking

Ayelet Gneezy, University of California San Diego, USA
Alex Imas, Carnegie Mellon University, USA
Poverty is often associated with displays of aberrant preferences such as increased impulsivity and pronounced risk-seeking. Using a combination of lab and field experiments, we demonstrate that feelings of helplessness generated by being in a state of poverty shift preferences towards more impulsive and risk-seeking choices.
[ to cite ]:
Ayelet Gneezy and Alex Imas (2015) ,"Poverty As Helplessness: How Loss of Control Affects Impulsivity and Risk-Taking", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 208-211.