Behavioral biases and cognitive reflection

In a large-scale laboratory experiment, we investigate whether subjects' scores on the cognitive reflection test (CRT) are related to their susceptibility to the base rate fallacy, the conservatism bias, overconfidence, and the endowment effect.

Research Highlights► Cognitive abilities are related to the susceptibility to some behavioral biases. ► Base rate fallacy, conservatism, and overconfidence vary with CRT scores. ► The endowment effect is strong, but unrelated to cognitive abilities.