If you are interested in how your personality and cognitive skills affect your economic choices, you might want to check out this paper by Tomáš Jagelka. He uses a novel method to link psychological traits to risk and time preferences, and to measure how consistent and rational people are in their decisions. He finds that personality matters for what people want, while cognitive ability matters for how well they achieve it. He explains up to 60% of the variation in preferences and decision quality using four cognitive factors and three of the Big Five personality traits. This paper shows that economics and psychology can work together to understand human behavior better.

https://www.econstor.eu/bitstream/10419/223745/1/dp13303.pdf

Want to Learn More?