Are Time Preference and Risk Preference Associated with Cognitive Intelligence and Emotional Intelligence?
Department
Economics, Finance and Quantitative Analysis
Document Type
Article
Publication Date
11-1-2019
Abstract
The authors investigated whether cognitive intelligence (intelligence quotient [IQ]) and emotional intelligence (emotional quotient [EQ]) meaningfully correlate with time preference and risk preference, finding solid evidence in support. In the realm of time preference, high-EQ individuals are less subject to present (or future) bias and more patient. Further, high-IQ subjects tend to exhibit preferences that conform to expected utility maximization. While recent research on the relationship between cognitive ability and preferences has provided important insights, the results suggest that both cognitive intelligence and emotional intelligence matter.
Journal Title
Journal of Behavioral Finance
Journal ISSN
1542-7560,1542-7579
Digital Object Identifier (DOI)
10.1080/15427560.2019.1663850