Are the Smart Kids More Rational?

17 Pages Posted: 30 Jan 2013

See all articles by Sabrina Bruyneel

Sabrina Bruyneel

Carnegie Mellon University - David A. Tepper School of Business

L. Cherchye

KU Leuven; Erasmus Research Institute of Management (ERIM)

Sam Cosaert

Luxembourg Institute of Socio-Economic Research (LISER)

Bram De Rock

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES)

Siegfried Dewitte

KU Leuven - Faculty of Business and Economics (FEB)

Date Written: December 1, 2012

Abstract

We conducted an experiment to collect data on consumption decisions made by children of different age categories. In particular, our experiment involves unsophisticated discrete consumption choices, and we present a rationality test that is specifically designed for the resulting choice data. Our first conclusion is that, in general, the observed children's consumption behavior is largely irrational. Next, we also investigate the relationship between the degree of rationality and the children's characteristics. Specifically, we use teacher based assessments on several personal characteristics to investigate whether and to what extent smart children tend to behave more rational. Here, our main conclusion is that it is important to recognize the multidimensional nature of intelligence to obtain a balanced insight into the effect of intelligence on rationality.

Keywords: rationality, children, revealed preference, intelligence

JEL Classification: C14, C91, D12

Suggested Citation

Bruyneel, Sabrina and Cherchye, Laurens and Cosaert, Sam and De Rock, Bram and Dewitte, Siegfried, Are the Smart Kids More Rational? (December 1, 2012). Available at SSRN: https://ssrn.com/abstract=2208412 or http://dx.doi.org/10.2139/ssrn.2208412

Sabrina Bruyneel

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

Laurens Cherchye (Contact Author)

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant
Belgium

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Sam Cosaert

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

Bram De Rock

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Av. F. D. Roosevelt, 50
CP 114
Brussels, B-1050
Belgium

Siegfried Dewitte

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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