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dc.contributor.authorRotaru, Kristian
dc.contributor.authorKalev, Petko S
dc.contributor.authorYadav, Nitin
dc.contributor.authorBossaerts, Peter
dc.date.accessioned2021-12-15T11:10:35Z
dc.date.available2021-12-15T11:10:35Z
dc.date.issued2021-11-29
dc.date.submitted2021-07-14
dc.identifier.issn2045-2322
dc.identifier.others41598-021-02596-2
dc.identifier.other2596
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/331463
dc.description.abstractWe consider Theory of Mind (ToM), the ability to correctly predict the intentions of others. To an important degree, good ToM function requires abstraction from one's own particular circumstances. Here, we posit that such abstraction can be transferred successfully to other, non-social contexts. We consider the disposition effect, which is a pervasive cognitive bias whereby investors, including professionals, improperly take their personal trading history into account when deciding on investments. We design an intervention policy whereby we attempt to transfer good ToM function, subconsciously, to personal investment decisions. In a within-subject repeated-intervention laboratory experiment, we record how the disposition effect is reduced by a very significant 85%, but only for those with high scores on the social-cognitive dimension of ToM function. No such transfer is observed in subjects who score well only on the social-perceptual dimension of ToM function. Our findings open up a promising way to exploit cognitive talent in one domain in order to alleviate cognitive deficiencies elsewhere.
dc.languageen
dc.publisherSpringer Science and Business Media LLC
dc.subjectArticle
dc.subject/631/477/2811
dc.subject/631/378/3919
dc.subject/631/378/2649/1409
dc.subject/631/378/2645/1458
dc.subjectarticle
dc.titleTransferring cognitive talent across domains to reduce the disposition effect in investment.
dc.typeArticle
dc.date.updated2021-12-15T11:10:34Z
prism.issueIdentifier1
prism.publicationNameSci Rep
prism.volume11
dc.identifier.doi10.17863/CAM.78917
dcterms.dateAccepted2021-11-11
rioxxterms.versionofrecord10.1038/s41598-021-02596-2
rioxxterms.versionVoR
rioxxterms.licenseref.urihttp://creativecommons.org/licenses/by/4.0/
dc.identifier.eissn2045-2322
cam.issuedOnline2021-11-29


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