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EconStor
Research . 2016
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Cognitive load increases risk aversion

Authors: Gerhardt, Holger; Biele, Guido P.; Heekeren, Hauke R.; Uhlig, Harald;

Cognitive load increases risk aversion

Abstract

We investigate how stable individuals' risk attitudes are with respect to changes in cognitive load. In a laboratory experiment using pairwise lottery choice and a within-subject design, we showthat putting subjects under load via a concurrent working-memory task significantly increases their risk aversion. Subjects made significantly faster choices under load. Regardless of load, they responded faster when choosing the less risky option in safe-risky trials, but not in risky-risky trials. We discuss how these findings relate to both dual-system and unitarysystem theories of decision making.We observe that predictions of both recent dual-system and drift-diffusion models of the decision-making process are confirmed by our data and argue for a convergence of these to-date separate strands of the literature.

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Germany
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Keywords

multiple-system approach, drift–diffusion model, ddc:330, 330 Wirtschaft, cognitive load, ddc:310, Risk aversion, risk aversion, dual-system approach, dual-self model, 310 Sammlungen allgemeiner Statistiken, working memory, D81, drift-diffusion model, C91, D03, multiplesystem approach, D87, response times

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
views
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