Scientific Reports (Jun 2023)
The persistence of cognitive biases in financial decisions across economic groups
- Kai Ruggeri,
- Sarah Ashcroft-Jones,
- Giampaolo Abate Romero Landini,
- Narjes Al-Zahli,
- Natalia Alexander,
- Mathias Houe Andersen,
- Katherine Bibilouri,
- Katharina Busch,
- Valentina Cafarelli,
- Jennifer Chen,
- Barbora Doubravová,
- Tatianna Dugué,
- Aleena Asfa Durrani,
- Nicholas Dutra,
- Eduardo Garcia-Garzon,
- Christian Gomes,
- Aleksandra Gracheva,
- Neža Grilc,
- Deniz Mısra Gürol,
- Zoe Heidenry,
- Clara Hu,
- Rachel Krasner,
- Romy Levin,
- Justine Li,
- Ashleigh Marie Elizabeth Messenger,
- Melika Miralem,
- Fredrik Nilsson,
- Julia Marie Oberschulte,
- Takashi Obi,
- Anastasia Pan,
- Sun Young Park,
- Daria Stefania Pascu,
- Sofia Pelica,
- Maksymilian Pyrkowski,
- Katherinne Rabanal,
- Pika Ranc,
- Žiga Mekiš Recek,
- Alexandra Symeonidou,
- Olivia Symone Tutuska,
- Milica Vdovic,
- Qihang Yuan,
- Friederike Stock
Affiliations
- Kai Ruggeri
- Department of Health Policy and Management, Columbia University
- Sarah Ashcroft-Jones
- Department of Experimental Psychology, University of Oxford
- Giampaolo Abate Romero Landini
- Department of Psychology, University of Padua
- Narjes Al-Zahli
- Department of Computer Science, Columbia University
- Natalia Alexander
- Columbia University
- Mathias Houe Andersen
- Department of Psychology and Behavioural Sciences, Aarhus University
- Katherine Bibilouri
- Department of Psychology, Columbia University
- Katharina Busch
- German Center for Addiction Research in Childhood and Adolescence, University Medical Center Hamburg-Eppendorf
- Valentina Cafarelli
- Department of Health Policy and Management, Columbia University
- Jennifer Chen
- Department of Economics, Columbia University
- Barbora Doubravová
- Department of Psychology, Faculty of Social Studies, Masaryk University
- Tatianna Dugué
- Department of Psychology, Columbia University
- Aleena Asfa Durrani
- Department of Health Policy and Management, Columbia University
- Nicholas Dutra
- Department of Psychology, Columbia University
- Eduardo Garcia-Garzon
- Department of Health, Universidad Camilo José Cela
- Christian Gomes
- Department of Psychology, Columbia University
- Aleksandra Gracheva
- Department of Political Science, Columbia University
- Neža Grilc
- Department of Life Sciences, University of Roehampton
- Deniz Mısra Gürol
- Department of Psychology, Koc University
- Zoe Heidenry
- Department of Psychology, Columbia University
- Clara Hu
- Department of Psychology, Columbia University
- Rachel Krasner
- Department of Psychology, Barnard College, Columbia University
- Romy Levin
- Department of Psychology, Barnard College, Columbia University
- Justine Li
- Department of Biological Sciences, Columbia University
- Ashleigh Marie Elizabeth Messenger
- Department of Psychology, University of Stirling
- Melika Miralem
- Lund University
- Fredrik Nilsson
- Department of Clinical Neuroscience, Division of Psychology, Karolinska Institutet
- Julia Marie Oberschulte
- Department of Psychology, Ludwig-Maximilians-Universität München
- Takashi Obi
- Department of Public Administration, Columbia University
- Anastasia Pan
- Department of Psychology, Barnard College, Columbia University
- Sun Young Park
- Department of Psychology, Columbia University
- Daria Stefania Pascu
- Department of Developmental Psychology and Socialisation, University of Padua
- Sofia Pelica
- Department of Social and Organizational Psychology, Iscte-University Institute of Lisbon
- Maksymilian Pyrkowski
- SWPS University
- Katherinne Rabanal
- Department of Cognitive Science, Columbia University
- Pika Ranc
- Department of Psychology, University of Ljubljana
- Žiga Mekiš Recek
- Department of Psychology, University of Ljubljana
- Alexandra Symeonidou
- Department of Clinical Psychology, Leiden University
- Olivia Symone Tutuska
- Department of Sociology, Columbia University
- Milica Vdovic
- Department of Psychology, Faculty of Media and Communications, Singidunum University
- Qihang Yuan
- Department of Psychology, Columbia University
- Friederike Stock
- University of Cologne
- DOI
- https://doi.org/10.1038/s41598-023-36339-2
- Journal volume & issue
-
Vol. 13,
no. 1
pp. 1 – 11
Abstract
Abstract 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.
