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Aging and decision making: a comparison between neurologically healthy elderly and young individuals

Kovalchik, Stephanie and Camerer, Colin F. and Grether, David M. and Plott, Charles R. and Allman, John M. (2005) Aging and decision making: a comparison between neurologically healthy elderly and young individuals. Journal of Economic Behavior & Organization, 58 (1). pp. 79-94. ISSN 0167-2681. http://resolver.caltech.edu/CaltechAUTHORS:20110204-102649257

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Abstract

We report the results of experiments on economic decisions with two populations, one of healthy elderly individuals (average age 82) and one of younger students (average age 20). We examine confidence, decisions under uncertainty, differences between willingness to pay and willingness to accept and the theory of mind (strategic thinking). Our findings indicate that the older adults’ decision behavior is similar to that of young adults, contrary to the notion that economic decision making is impaired with age. Moreover, some of the demonstrated decision behaviors suggest that the elderly individuals are less biased than the younger individuals.


Item Type:Article
Related URLs:
URLURL TypeDescription
http://dx.doi.org/10.1016/j.jebo.2003.12.001 DOIUNSPECIFIED
http://www.sciencedirect.com/science/article/B6V8F-4F1H011-1/2/dd014b83f256221eb6eadb6d121790d5PublisherUNSPECIFIED
Additional Information:© 2004 Elsevier B.V. Received 17 March 2003; accepted 15 December 2003. Available online 15 December 2004. We thank Dr. Gail Murdock and Dr. Linda Clark, from the Alzheimer’s Disease Research Center, who coordinated the recruitment of the older population and provided demographic data for these subjects.We also thank Kathy Zeiler for her assistance with the loss-aversion methodology, as well as Neda Afsarmanesh for her involvement in the questionnaire design. The financial support of the National Science Foundation, the Summer Undergraduate Research Fellowship at the California Institute of Technology, the Arthur R. Adams Fellowship, and the David and Lucile Packard Foundation are gratefully acknowledged.For their reading of and helpful responses to early versions of our paper, we thank an Associate Editor and an anonymous referee.
Group:Social Science Working Papers
Funders:
Funding AgencyGrant Number
NSFUNSPECIFIED
Caltech Summer Undergraduate Research Fellowship (SURF)UNSPECIFIED
Arthur R. Adams FellowshipUNSPECIFIED
David and Lucile Packard FoundationUNSPECIFIED
Subject Keywords:age; overconfidence; willingness to pay/accept; endowment effect; theory of mind; game theory; risk-taking
Other Numbering System:
Other Numbering System NameOther Numbering System ID
Social Science Working Paper1180
Classification Code:JEL classification: D00; D80; D81.
Record Number:CaltechAUTHORS:20110204-102649257
Persistent URL:http://resolver.caltech.edu/CaltechAUTHORS:20110204-102649257
Official Citation:Stephanie Kovalchik, Colin F. Camerer, David M. Grether, Charles R. Plott, John M. Allman, Aging and decision making: a comparison between neurologically healthy elderly and young individuals, Journal of Economic Behavior & Organization, Volume 58, Issue 1, September 2005, Pages 79-94, ISSN 0167-2681, DOI: 10.1016/j.jebo.2003.12.001. (http://www.sciencedirect.com/science/article/B6V8F-4F1H011-1/2/dd014b83f256221eb6eadb6d121790d5)
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:22013
Collection:CaltechAUTHORS
Deposited By: Tony Diaz
Deposited On:11 Feb 2011 23:11
Last Modified:26 Mar 2014 23:40

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