Behavioral biases and cognitive reflection

Hoppe, Eva I.; Kusterer, David J.

doi:10.1016/j.econlet.2010.11.015

Cited by 154 publications

(77 citation statements)

References 8 publications

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“…Economics) as coherent predictors of behavior and decision-making. Oechssler, Roider, and Schmitz (2009) and Hoppe and Kusterer (2011), for instance, present results from laboratory experiments connecting CRT score to the tendency to follow (or not) heuristics and biases in judgment and decision-making (JDM).…”

Section: Introductionmentioning

confidence: 99%

An Assessment of Professional Accountants' Cognitive Reflection Ability

Barcellos¹,

Cardoso²,

Aquino³

2016

ASAA Journal

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In this paper, we map Brazilian professional accountants' cognitive reflection abilities, exploring the demographic characteristics associated with such ability. To operationalize individuals' cognitive reflection ability, we use the Cognitive Reflection Test (CRT). Our sample consists of 4,902 Brazilian accountants who voluntarily answered an online survey. We analyze data using three ordered logistic regression (ologit) models that provide a good fit for our data set. Our exploratory analysis reveals that male Brazilian accountants tend to be more reflective than their female counterparts. We also find that professional accountants tend to become less reflective, and, consequentially, more impulsive, as they age. Besides that, we present evidence that preparers and managers working for larger companies tend to be less reflective than their counterparts working for smaller firms. Additionally, our results suggest that auditors' scores on CRT are significantly higher than preparers' , analysts' , managers' and professors' scores, raising interesting questions for future research. Our findings contribute not only to the literature in accounting and psychology, but also for practitioners interested in understanding how cognitive reflection abilities relate to demographic characteristics within the accounting field. Since cognitive reflection abilities significantly affect JDM quality, as reported in previous studies, the importance of our findings connects to the remarkable role that JDM plays in several fields of accounting activity.To our knowledge, our study is the first to assess how demographic individual characteristics predict CRT scores looking at professionals that share a background in a very specific area. Besides, we use the largest data set that we are aware of for studies of similar nature.

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Section: Introductionmentioning

confidence: 99%

An Assessment of Professional Accountants' Cognitive Reflection Ability

Barcellos¹,

Cardoso²,

Aquino³

2016

ASAA Journal

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“…Accuracy on the CRT is positively associated with better performance on multiple decision-making (e.g., Campitelli & Labollita, 2010;Frederick, 2005;Hoppe & Kusterer, 2011;Koehler & James, 2010;Oechssler, Roider, & Schmitz, 2009;Toplak et al, 2011Toplak et al, , 2014 and reasoning (e.g., Lesage, Navarrete, & De Neys, 2013;Sirota, Juanchich, & Hagmayer, 2014;Toplak et al, 2011Toplak et al, , 2014 tasks, as well as with utilitarian moral judgment (Paxton, Unger, & Greene, 2012;Pennycook, Cheyne, Barr, Koehler, & Fugelsang, 2014), less traditional moral values (Pennycook et al, 2014;Rozyman, Landy, & Goodwin, 2014), religious disbelief (Gervais & Norenzayan, 2012;Pennycook, Cheyne, Seli, Koehler, & Fugelsang, 2012;Shenhav, Rand, & Greene, 2012), paranormal disbelief (Cheyne & Pennycook, 2013;Pennycook et al, 2012), improved scientific understanding (Shtulman & McCallum, 2014), and creativity on complex tasks (Barr, Pennycook, Stolz, & Fugelsang, 2015).…”

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confidence: 99%

Is the cognitive reflection test a measure of both reflection and intuition?

Pennycook¹,

Cheyne²,

Koehler³

et al. 2015

Behav Res

203

177

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The Cognitive Reflection Test (CRT) is one of the most widely used tools to assess individual differences in intuitive-analytic cognitive styles. The CRT is of broad interest because each of its items reliably cues a highly available and superficially appropriate but incorrect response, conventionally deemed the Bintuitiver esponse. To do well on the CRT, participants must reflect on and question the intuitive responses. The CRT score typically employed is the sum of correct responses, assumed to indicate greater Breflectiveness( i.e., CRT-Reflective scoring). Some recent researchers have, however, inverted the rationale of the CRT by summing the number of intuitive incorrect responses, creating a putative measure of intuitiveness (i.e., CRTIntuitive). We address the feasibility and validity of this strategy by considering the problem of the structural dependency of these measures derived from the CRT and by assessing their respective associations with selfreport measures of intuitive-analytic cognitive styles: the Faith in Intuition and Need for Cognition scales. Our results indicated that, to the extent that the dependency problem can be addressed, the CRT-Reflective but not the CRT-Intuitive measure predicts intuitive-analytic cognitive styles. These results provide evidence that the CRT is a valid measure of reflective but not of intuitive thinking.

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“…Thus we can conclude that previous findings cannot be applied to settings where the random walk of changes is salient. Instead, as in most studies investigating the effect of cognitive abilities on decision behavior (e.g., Hoppe & Kusterer, 2011;Oechssler, Roider, & Schmitz, 2009;Toplak, West, & Stanovich, 2011), subjects with higher cognitive skills are less prone to behavioral biases.…”

Section: Resultsmentioning

confidence: 99%

Disentangling Two Causes of Biased Probability Judgment Cognitive Skills and Perception of Randomness

Duttle

2015

SSRN Journal

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Behavioral biases and cognitive reflection

Cited by 154 publications

References 8 publications

An Assessment of Professional Accountants' Cognitive Reflection Ability

An Assessment of Professional Accountants' Cognitive Reflection Ability

Is the cognitive reflection test a measure of both reflection and intuition?

Disentangling Two Causes of Biased Probability Judgment Cognitive Skills and Perception of Randomness

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