Abstract
We investigated through a laboratory experiment whether performance in a cognitively demanding financial task can depend on prior outcome from independent and unrelated financial tasks. Subjects first faced a sequence of lottery choice problems, which generated a financial history, and then allocated a budget across two deterministic options, one with a linear, and the other with a highly non-linear return function. We found that more negative financial outcome histories tended to produce poorer cognitive performance. We also found that the proportion of subjects providing the poorest performance was independent of specific history, suggesting that performance of weaker sections of the population may be immune to prior personal experience.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
