Do IQ and personality predict risk-taking behaviour?
This research project investigates how individuals’ cognitive abilities, personality traits and socioeconomic background predict their risk preferences and behaviour in gambling markets. We use a unique data set which combines socioeconomic registry data on the Finnish population, player account data on horse race betting, and the Finnish Defence Forces’ cognitive ability and personality traits test data on conscripts. Our approach allows for drawing conclusions about individual behaviour in an actual market setting with a rich set of controllable attributes. Our findings provide novel insights into decision making under risk and gambling behaviour. The results can be applied in analyses of financial decision making and gambling markets. Research is funded by Academy of Finland.