IDEAS home Printed from https://ideas.repec.org/a/eee/intell/v90y2022ics0160289621001033.html
   My bibliography  Save this article

Normative responding on cognitive bias tasks: Some evidence for a weak rationality factor that is mostly explained by numeracy and actively open-minded thinking

Author

Listed:
  • Erceg, Nikola
  • Galić, Zvonimir
  • Bubić, Andreja

Abstract

We conducted two studies with two goals in mind. First, we investigated the dimensionality of several prominent cognitive bias tasks to see whether a single rationality factor can explain a performance on these tasks. Second, we validated this factor by correlating it with a number of constructs from its nomological network (fluid intelligence, numeracy, actively open-minded thinking, conspiracy and superstitious thinking, personality traits) and several real-life outcomes (decision-outcome inventory, job and career satisfaction, peer-rated decision-making quality). Although in both studies one-factor solution was the most appropriate for our tasks, this factor (i.e., “rationality factor”) was weak and only able to account for modest portion of variance among the tasks. Across both studies, the two strongest correlates of this rationality factor were numeracy and actively open-minded thinking. We conclude that cognitive bias tasks are highly heterogeneous, having very little in common. What they had in common, however, was largely underpinned by abilities and dispositions assessed with numeracy and actively open-minded thinking. We discuss how our findings relate to the dual-process theories and offer our view on the place of rationality in a broader model of human intelligence.

Suggested Citation

  • Erceg, Nikola & Galić, Zvonimir & Bubić, Andreja, 2022. "Normative responding on cognitive bias tasks: Some evidence for a weak rationality factor that is mostly explained by numeracy and actively open-minded thinking," Intelligence, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:intell:v:90:y:2022:i:c:s0160289621001033
    DOI: 10.1016/j.intell.2021.101619
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160289621001033
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intell.2021.101619?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:cup:judgdm:v:15:y:2020:i:1:p:93-111 is not listed on IDEAS
    2. repec:cup:judgdm:v:15:y:2020:i:5:p:741-755 is not listed on IDEAS
    3. repec:cup:judgdm:v:9:y:2014:i:1:p:15-34 is not listed on IDEAS
    4. Peter, J Paul & Churchill, Gilbert A, Jr & Brown, Tom J, 1993. "Caution in the Use of Difference Scores in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(4), pages 655-662, March.
    5. Yigal Attali & Maya Bar-Hillel, 2020. "The False Allure of Fast Lures," Discussion Paper Series dp733, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    6. Sobkow, Agata & Olszewska, Angelika & Traczyk, Jakub, 2020. "Multiple numeric competencies predict decision outcomes beyond fluid intelligence and cognitive reflection," Intelligence, Elsevier, vol. 80(C).
    7. repec:cup:judgdm:v:11:y:2016:i:1:p:99-113 is not listed on IDEAS
    8. repec:cup:judgdm:v:4:y:2009:i:1:p:20-33 is not listed on IDEAS
    9. repec:cup:judgdm:v:10:y:2015:i:6:p:549-563 is not listed on IDEAS
    10. Rosseel, Yves, 2012. "lavaan: An R Package for Structural Equation Modeling," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 48(i02).
    11. Shane Frederick, 2005. "Cognitive Reflection and Decision Making," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 25-42, Fall.
    12. Arkes, Hal R. & Blumer, Catherine, 1985. "The psychology of sunk cost," Organizational Behavior and Human Decision Processes, Elsevier, vol. 35(1), pages 124-140, February.
    13. repec:cup:judgdm:v:7:y:2012:i:1:p:25-47 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gignac, Gilles E. & Stevens, Elizabeth M., 2024. "Attitude toward numbers: A better predictor of financial literacy and intelligence than need for cognition," Intelligence, Elsevier, vol. 103(C).
    2. repec:cup:judgdm:v:17:y:2022:i:4:p:720-744 is not listed on IDEAS
    3. repec:jdm:journl:v:17:y:2022:i:4:p:720-744 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Białek Michał & Węgrzyn Michał & Meyers Ethan A., 2021. "Escalation of commitment is independent of numeracy and cognitive reflection. Failed replication and extension of Staw (1976)," Economics and Business Review, Sciendo, vol. 7(2), pages 5-16, June.
    2. Ronayne, David & Sgroi, Daniel & Tuckwell, Anthony, 2021. "Evaluating the sunk cost effect," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 318-327.
    3. repec:cup:judgdm:v:15:y:2020:i:1:p:93-111 is not listed on IDEAS
    4. Yigal Attali & Maya Bar-Hillel, 2020. "The False Allure of Fast Lures," Discussion Paper Series dp733, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    5. Shakira MUKHTAR & Anisa JAN, 2023. "Decoding financial literacy's mediating role: analyzing the influence of biopsychosocial indicators on financial satisfaction and risk tolerance among millennial investors," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(637), W), pages 219-242, Winter.
    6. Sheheryar Banuri & Stefan Dercon & Varun Gauri, 2019. "Biased Policy Professionals," The World Bank Economic Review, World Bank, vol. 33(2), pages 310-327.
    7. Nicolas Eber & Patrick Roger & Tristan Roger, 2024. "Finance and intelligence: An overview of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 38(2), pages 503-554, April.
    8. Roger, Tristan & Roger, Patrick & Willinger, Marc, 2022. "Number sense, trading decisions and mispricing: An experiment," Journal of Economic Dynamics and Control, Elsevier, vol. 135(C).
    9. Stephen Leider & Özge Şahin, 2014. "Contracts, Biases, and Consumption of Access Services," Management Science, INFORMS, vol. 60(9), pages 2198-2222, September.
    10. repec:cup:judgdm:v:15:y:2020:i:5:p:741-755 is not listed on IDEAS
    11. Gignac, Gilles E. & Stevens, Elizabeth M., 2024. "Attitude toward numbers: A better predictor of financial literacy and intelligence than need for cognition," Intelligence, Elsevier, vol. 103(C).
    12. Antonides, Gerrit & Manon de Groot, I. & Fred van Raaij, W., 2011. "Mental budgeting and the management of household finance," Journal of Economic Psychology, Elsevier, vol. 32(4), pages 546-555, August.
    13. Nikola Erceg & Zvonimir Galić & Mitja RužojÄ ić, 2020. "A reflection on cognitive reflection – testing convergent/divergent validity of two measures of cognitive reflection," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 15(5), pages 741-755, September.
    14. Arkes, Hal R. & Hirshleifer, David & Jiang, Danling & Lim, Sonya S., 2010. "A cross-cultural study of reference point adaptation: Evidence from China, Korea, and the US," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(2), pages 99-111, July.
    15. Haita-Falah, Corina, 2017. "Sunk-cost fallacy and cognitive ability in individual decision-making," Journal of Economic Psychology, Elsevier, vol. 58(C), pages 44-59.
    16. Yigal Attali & Maya Bar-Hillel, 2020. "The false allure of fast lures," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 15(1), pages 93-111, January.
    17. Tifferet, Sigal, 2021. "Verifying online information: Development and validation of a self-report scale," Technology in Society, Elsevier, vol. 67(C).
    18. Insoo Cho & Peter F. Orazem, 2021. "How endogenous risk preferences and sample selection affect analysis of firm survival," Small Business Economics, Springer, vol. 56(4), pages 1309-1332, April.
    19. Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    20. David J. Cooper & Krista Saral & Marie Claire Villeval, 2021. "Why Join a Team?," Management Science, INFORMS, vol. 67(11), pages 6980-6997, November.
    21. Son K. Lam & Thomas E. DeCarlo & Ashish Sharma, 2019. "Salesperson ambidexterity in customer engagement: do customer base characteristics matter?," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 659-680, July.
    22. Zakaria Babutsidze & Nobuyuki Hanaki & Adam Zylbersztejn, 2019. "Digital Communication and Swift Trust," Post-Print halshs-02409314, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intell:v:90:y:2022:i:c:s0160289621001033. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/intelligence .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.