The persistence of cognitive biases in financial decisions across economic groups

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14230%2F23%3A00134822" target="_blank" >RIV/00216224:14230/23:00134822 - isvavai.cz</a>

Result on the web

<a href="https://www.nature.com/articles/s41598-023-36339-2" target="_blank" >https://www.nature.com/articles/s41598-023-36339-2</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1038/s41598-023-36339-2" target="_blank" >10.1038/s41598-023-36339-2</a>

Result language

angličtina

Original language name

The persistence of cognitive biases in financial decisions across economic groups

Original language description

While economic inequality continues to rise within countries, efforts to address it have been largely ineffective, particularly those involving behavioral approaches. It is often implied but not tested that choice patterns among low-income individuals may be a factor impeding behavioral interventions aimed at improving upward economic mobility. To test this, we assessed rates of ten cognitive biases across nearly 5000 participants from 27 countries. Our analyses were primarily focused on 1458 individuals that were either low-income adults or individuals who grew up in disadvantaged households but had above-average financial well-being as adults, known as positive deviants. Using discrete and complex models, we find evidence of no differences within or between groups or countries. We therefore conclude that choices impeded by cognitive biases alone cannot explain why some individuals do not experience upward economic mobility. Policies must combine both behavioral and structural interventions to improve financial well-being across populations.

Czech name

—

Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50100 - Psychology and cognitive sciences

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Scientific Reports

ISSN

2045-2322

e-ISSN

—

Volume of the periodical

13

Issue of the periodical within the volume

1

Country of publishing house

GB - UNITED KINGDOM

Number of pages

11

Pages from-to

1-11

UT code for WoS article

001059061400011

EID of the result in the Scopus database

2-s2.0-85163393716