The role of intelligence and its connection to our individual differences in preferences and economic behavior has been explored by researchers throughout history. This study examines whether there is a relation between an individual’s cognitive ability – intelligence, and their individual parameters of likelihood insensitivity (a) and pessimism (b), which theory uses to describe individual probability weighting, people’s non-objective perception regarding probabilities in choices under risk.

PP Wakker
Economics of Management and Organisation
Erasmus School of Economics

K Spyridakis. (2020, July 28). Which risk/ambiguity attitude components are related to intelligence?. Economics of Management and Organisation. Retrieved from