Risky Business: The Influence Of Psychological Traits On Economic Risk Behavior

This thesis investigates the relationship between psychological metrics and economic risk behavior through a laboratory experiment (n=39). A better understanding of the influence of psychological traits on risk preferences could elucidate what drives human decisions under uncertainty and foster a better understanding of ideal portfolio compositions, the real world effects of economic policy, and consumer behavior. The experiment found that the psychological metrics examined, sensation seeking and impulsivity, had little to no predictive ability for economic risk behavior.