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Cognitive Ability and Miscalibrated Financial Expectations
Cognitive Abilities and Intelligence

Cognitive Ability and Optimism Bias

This post examines findings from Chris Dawson’s research on the connection between cognitive ability and optimism bias in financial decision-making. Using data from over 36,000 individuals in the U.K., the study highlights how cognitive ability influences unrealistic optimism, particularly in financial expectations versus actual outcomes. Background Optimism bias refers to …