Thought this was interesting …
Full article at http://www.bps.org.uk/publications/thepsychologist/extras/pages$/2007/financial-decision-making.cfm
For those here who know if their T levels are high or low, how does this compare to you? It fits in fairly well with me, more so when I am on cycle.
[quote]The financial decisions we make are not as rational as economists used to believe, but instead are buffeted by an array of biases and errors. Now two new studies have shed further light on some of these influences, one showing that men with more testosterone are more likely to punish others at their own financial expense, and the other revealing how people with superior cognitive ability are less risk averse and more likely to sacrifice immediate financial gratification for greater reward later.
The testosterone study involved the Ultimatum Game, which features a “proposer” offering to share a portion of a budget with a “responder”, who must decide whether or not to accept. Crucially, if the responder rejects the offer, neither party receives anything. Human financial irrationality is betrayed by the game because so many people choose to reject a low offer from the proposer, even though this means losing out themselves.
Twenty-six male students played the Ultimatum Game with real money after having their testosterone levels measured by saliva swab over three days. Terence Burnham at Harvard University found the students with higher testosterone levels were more likely to reject a poor offer from the proposer: 45 per cent of the men with above-average testosterone chose to reject a low $5 offer from a budget of $40 compared with 7 per cent of men with below-average testosterone. [/quote]
–
renton