Do risk and time preferences have biological roots?

Drichoutis, Andreas and Nayga, Rodolfo (2012): Do risk and time preferences have biological roots?

Abstract

We revisit the claims about the biological underpinnings of economic behavior by specifically exploring if observed gender differences in risk/time preferences can be explained by natural fluctuations in progesterone/estradiol levels during the menstrual cycle and by prenatal exposure to testosterone and estrogen levels. We find no effect of the menstrual cycle (and thereby, of associated fluctuations in progesterone and estradiol levels) or of the digit ratio on either risk or time preferences.

• Item Type: MPRA Paper
• Language: English
• Keywords: discount rates; risk aversion; lab experiment; menstrual cycle; 2D:4D; digit ratio; hormones; estradiol; progesterone; testosterone
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior

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