Should Einstein Manage Your Money? Lay Theories and Normative Force of the Relation Between Cognitive Ability and Preferences
Recent research has found that smarter people are more patient and less risk averse. Here we examine whether these facts are widely known, and whether being informed of them influences decisions. We find that respondents predict this relationship for time preferences, and, that, correspondingly, emphasizing it does not make them more patient. In contrast, respondents do not predict the relation between cognitive ability and risk preferences, and informing subjects of the relation substantially increases their risk tolerance.
Shane Frederick, Nathan Fong, and Eric Tsytsylin (2010) ,"Should Einstein Manage Your Money? Lay Theories and Normative Force of the Relation Between Cognitive Ability and Preferences", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 111-114 .
Shane Frederick, Yale University, USA
Nathan Fong, Sloan School of Management, USA
Eric Tsytsylin, Yale School of Management, USA
NA - Advances in Consumer Research Volume 37 | 2010
H12. Does Economic Development Influence Consumer Innovativeness?
Fuchun Zhan, University of Wisconsin - Madison, USA
Nancy Wong, University of Wisconsin - Madison, USA
Julie Anne Lee, University of Western Australia
The Ex-Money Effect: When and Why People Feel Connected to Outcomes that Involve Money They Previously Had
Charis Li, University of Florida, USA
Yanping Tu, University of Florida, USA
Losing Fast or Slow? Preferences for Uncertainty Resolution
Kurt P. Munz, New York University, USA
Alixandra Barasch, New York University, USA