Cognitive Abilities and Behavioral Biases

We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the Cognitive Reflection Test of Frederick (2005) indeed are correlated with lower incidences of the conjunction fallacy, conservatism in updating probabilities, and overconfidence. Test scores are also significantly related to subjects’ time and risk preferences. We find no influence on anchoring. However, even if biases are lower for people with higher cognitive abilities, they still remain substantial.cognitive reflection test, behavioral finance, biases, cognitive abilities

Cognitive effort in the Beauty Contest Game

This paper analyzes cognitive effort in 6 different one-shot p-beauty games. We use both Raven and Cognitive Reflection tests to identify subjects' abilities. We find that the Raven test does not provide any insight on beauty contest game playing but CRT does: subjects with higher scores on this test are more prone to play dominant strategies.Beauty Contest Game, Raven, Cognitive Reflection Test

On Cognitive Ability and Learning in a Beauty Contest

We reinvestigate a version of the beauty contest originally developed by Keynes (1936) with a focus on cognitive reflection. Using a sample of 166 undergraduate students at a regional university in Florida, we confirm previous research by Burnham et al. (2009) that cognitive reflection, as measured by Frederick's (2005) cognitive reflection test, matters in the first round of the game; players with a higher CRT score pick significantly lower numbers, and their responses cluster more. Unlike previous research, however, we find that cognitive ability is important only when faced with a new situation. In subsequent rounds of the game, cognitive ability is subordinate to a learning effect and players' responses and the variability of responses are not significantly related to CRT scores. This finding is important in financial markets, since it implies that anticipating the decisions and actions of other players is a function of experience, not necessarily cognitive ability.beauty contest, cognitive reflection test, cognitive ability, CRT

Cognitive reflection test: whom, how, when

The use of the Cognitive Reflection Test as a covariate to explain behavior in Economics and Psychology experiments has significantly increased in the past few years. Experiments have shown its usefulness in predicting behavior. However, little is known about if the test is gender biased, whether incentives matter or how different implementation procedures impact outcomes. Here we report the results of a meta-study of 118 Cognitive Reflection Test studies comprising of 44,558 participants across 21 countries. We find that there is a negative correlation between being female and the overall, and individual, correct answers to CRT questions. Monetary incentives do not impact performance. Regarding implementation procedures, taking the test at the end of the experiment negatively impacts performance. Students perform better compared to non-students. We obtain mixed evidence on whether the sequence of questions matters. Finally, we find that computerized tests marginally improve results

Does the cognitive reflection test measure cognitive reflection? A mathematical modeling approach

We used a mathematical modeling approach, based on a sample of 2,019 participants, to better understand what the cognitive reflection test (CRT; Frederick In Journal of Economic Perspectives, 19, 25–42, 2005) measures. This test, which is typically completed in less than 10 min, contains three problems and aims to measure the ability or disposition to resist reporting the response that first comes to mind. However, since the test contains three mathematically based problems, it is possible that the test only measures mathematical abilities, and not cognitive reflection. We found that the models that included an inhibition parameter (i.e., the probability of inhibiting an intuitive response), as well as a mathematical parameter (i.e., the probability of using an adequate mathematical procedure), fitted the data better than a model that only included a mathematical parameter. We also found that the inhibition parameter in males is best explained by both rational thinking ability and the disposition toward actively open-minded thinking, whereas in females this parameter was better explained by rational thinking only. With these findings, this study contributes to the understanding of the processes involved in solving the CRT, and will be particularly useful for researchers who are considering using this test in their research

Cognitive Abilities and Behavioral Biases

We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the Cognitive Reflection Test of Frederick (2005) indeed are correlated with lower incidences of the conjunction fallacy, conservatism in updating probabilities, and overconfidence. Test scores are also significantly related to subjects' time and risk preferences. We find no influence on anchoring. However, even if biases are lower for people with higher cognitive abilities, they still remain substantial.

Inducing Cognitive Reflection and its Impact on Contradictory Belief Holding

Cognitive reflection is the propensity to reflect on one’s intuitions. 1 Some people are more likely than others to engage in cognitive reflection. This tendency can be measured with the Cognitive Reflection Test (CRT). 2 Cognitive reflection appears to be an important individual difference factor. For example, lower CRT performance has been linked to greater belief in conspiracy theories 3 and greater social conservatism. 4 Hence, it is important to test whether reflection can be induced among people who do not spontaneously engage in it. The present research will also test whether cognitive reflection is related to yea yeaing . Yea yeaing is a form of cognitive inconsistency where one agrees with two contradictory statements. 5 Yea yeaing has been linked to authoritarianism 5 and may support prejudicial thinking.

ANALYSIS OF PRE-SERVICE TEACHERS' COGNITIVE PROFILES

In recent years there has been increased attention to the problem of teachers' competences. The need for developing critical thinking in schools turns the focus also on the teachers' cognitive skills including not only intelligence but also cognitive reflection and implicit theories of intelligence. This study aimed to analyse pre-service teachers' (N = 344) cognitive profiles covering data from cognitive reflection test (CRT), implicit theories of intelligence test and Mannheim intelligence test (MIT, measuring verbal, numerical and spatial abilities). Significant correlations were found between cognitive reflection and other cognitive abilities. However, the implicit theories of intelligence seemed to be independent of cognitive abilities. Significant differences between senior and junior pre-service teachers were found in cognitive reflection and two MIT items. Based on the presented results, we discuss the assessment of pre-service teachers’ competences and the development of critical and higher order thinking in pre-gradual teacher education.

Measuring Cognitive Reflection without Maths: Development and Validation fo the Verbal Cognitive Reflection Test

The Cognitive Reflection Test (CRT) became popular for its impressive power to predict how well people reason and make decisions. Despite the popularity of the CRT, a major issue complicates its interpretation: the numerical nature of the CRT confounds reflection ability with mathematical ability. We have addressed this issue by developing the Verbal CRT (CRT-V), a novel 10-item measure of cognitive reflection (https://osf.io/xehbv/), using non-mathematical problems with good statistical and psychometric properties and with low familiarity. First, we selected suitable items with relatively low familiarity and optimal difficulty as identified in two different populations (Studies 1 and 2) and with high content validity as judged by an expert panel (Study 3). Second, we demonstrated good criterion and construct validity for the test in different populations with a wide range of variables (Studies 4-6, 8) and a good internal consistency and test-retest reliability (Study 7). The Verbal CRT was less associated with math anxiety, objective and subjective numeracy than the original CRT and it was test equivalent across gender, age groups and administration setting. In contrast with the original CRT (Hedge’s g = 0.29, 95% CI[0.17, 0.40]), the Verbal CRT showed no gender differences (Hedge’s g = -0.06, 95% CI[-0.18, 0.06]). The Verbal CRT can complement existing, numerical, tests of cognitive reflection

Phishing, Data-Disclosure and The Cognitive Reflection Test

Phishing is a form of online identity theft that aims to steal sensitive information such as passwords and credit card information from users. Data is key for the digital economy, but disclosing personal data online increases vulnerabilities and the likelihood of experiencing negative consequences from disclosure. In this paper, we analyze willingness to share personal data, a preference for an intuitive decision style and susceptibility to phishes. We report the results of three large-scale national studies in Norway that included the cognitive reflection test (CRT) and a choice experiment on willingness to share personal data. With a binary logistic regression method, we analyzed the relationship between the CRT, willingness to share data and demographical variables with susceptibility to phishes as the outcome variable. Our main finding is that the willingness to share personal data and an intuitive thinking style significantly predict the probability of falling for phish. These results are based on three large-scale studies with national populations, in contrast to earlier studies that in most cases relying on student populations, giving them greater validity