Articles

The Heritability of Attitude Toward Economic Risk

Songfa Zhong^a1, Soo Hong Chew^a2 c1, Eric Set^a3, Junsen Zhang^a4, Hong Xue^a5, Pak C. Sham^a6, Richard P. Ebstein^a7 and Salomon Israel^a8

^a1 Department of Economics, Hong Kong University of Science and Technology, Hong Kong, China; Center for Experimental Business Research, Hong Kong University of Science and Technology, Hong Kong, China.

^a2 Department of Economics, Hong Kong University of Science and Technology, Hong Kong, China; Center for Experimental Business Research, Hong Kong University of Science and Technology, Hong Kong, China; Department of Economics and Department of Business policy, National University of Singapore, Singapore. chew.sh@ust.hk

^a3 Center for Experimental Business Research, Hong Kong University of Science and Technology, Hong Kong, China.

^a4 Department of Economics, Chinese University of Hong Kong, Hong Kong, China.

^a5 Applied Genomics Center, Hong Kong University of Science and Technology, Hong Kong, China.

^a6 Department of Psychiatry and Genome Research Center, University of Hong Kong, Hong Kong, China.

^a7 Department of Psychology, Hebrew University, Jerusalem 91905, Israel.

^a8 Department of Psychology, Hebrew University, Jerusalem 91905, Israel.

Abstract

The propensity to take risk underpins a wide variety of decision-making behavior, ranging from common ones such as asking for directions and trying out a new restaurant to more substantial economic decisions involving, for instance, one's investment or career. Despite the fundamental role of risk attitude in the economy, its genetic basis remains unknown. Using an experimental economics protocol combined with a classical twin strategy, we provide the first direct evidence of the heritability of economic risk attitude, at 57%. We do not find a significant role for shared environmental effects, a common observation in behavioral genetics that is contrary to commonly held views in economics. Our findings complement recent neuroeconomic studies in enhancing the understanding of the neurobiological basis of risk taking.

(Received October 02 2008)

(Accepted November 27 2008)

Keywords

• economic risk;
• behaviour genetics;
• experimental economics

Correspondence:

^c1 Address for correspondence: Soo Hong Chew, Department of Economics, Hong Kong University of Science and Technology, Clearwater Bay, Kowloon, Hong Kong.