1. The relationship between economic preferences and psychological personality measures
- Author
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Thomas Dohmen, Anke Becker, Thomas Deckers, Armin Falk, Fabian Kosse, Macro, International & Labour Economics, Research Centre for Educ and Labour Mark, and RS: GSBE DUHR
- Subjects
jel:D80 ,History ,Economics and Econometrics ,Polymers and Plastics ,media_common.quotation_subject ,050109 social psychology ,jel:D01 ,Social preferences ,jel:I00 ,Industrial and Manufacturing Engineering ,jel:J62 ,Big Five ,RISK-AVERSION ,0502 economics and business ,Economics ,Personality ,0501 psychology and cognitive sciences ,locus of control ,ATTITUDES ,Business and International Management ,050207 economics ,locus of control, social preferences, time preference, risk preference, Big Five ,Association (psychology) ,Reciprocity (cultural anthropology) ,050205 econometrics ,media_common ,labour economics ,Actuarial science ,050208 finance ,time preference ,jel:C91 ,jel:D90 ,Risk aversion ,05 social sciences ,Life satisfaction ,risk preference, time preference, social preferences, locus of control, Big Five ,RECIPROCITY ,Preference ,jel:J30 ,risk preference ,Locus of control ,Time preference ,TRUST ,Psychology ,Social psychology ,social preferences - Abstract
Although both economists and psychologists seek to identify determinants of heterogeneity in behavior, they use different concepts to capture them. In this review, we first analyze the extent to which economic preferences and psychological concepts of personality, such as the Big Five and locus of control, are related. We analyze data from incentivized laboratory experiments and representative samples and find only low degrees of association between economic preferences and personality. We then regress life outcomes (such as labor market success, health status, and life satisfaction) simultaneously on preference and personality measures. The analysis reveals that the two concepts are rather complementary when it comes to explaining heterogeneity in important life outcomes and behavior.
- Published
- 2012