Genetic Factors in Financial Risk Taking
Author Information
Author(s): Camelia M. Kuhnen, Joan Y. Chiao
Primary Institution: Northwestern University
Hypothesis
Individuals carrying two copies of the s allele of the 5-HTTLPR would be significantly more risk averse relative to individuals carrying one or two copies of the l allele, and individuals with a 7-repeat allele of the DRD4 polymorphism would be significantly more risk seeking relative to those without the 7-repeat allele.
Conclusion
The study found that genetic variations in the 5-HTTLPR and DRD4 genes significantly influence financial risk-taking behavior.
Supporting Evidence
- Individuals with two copies of the short allele of the 5-HTTLPR invest significantly less in risky assets.
- Carriers of the 7-repeat allele of the DRD4 gene invest significantly more in risky assets.
- The study contributes to understanding the genetic basis of economic behavior.
Takeaway
Some people are more willing to take financial risks because of their genes, which affect how their brains process rewards.
Methodology
Participants completed an investment task and were genotyped for 5-HTTLPR and DRD4 polymorphisms.
Limitations
The study does not establish causality between genotype and risk preferences.
Participant Demographics
The sample consisted of 65 subjects (26 male; M age = 22.4 yrs; SD age: 4.9 yrs).
Statistical Information
P-Value
p<0.02 for 5-HTTLPR; p<0.04 for DRD4
Digital Object Identifier (DOI)
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