Cited by 472Decision-Making and Behavioral EconomicsExperimental Behavioral Economics StudiesFinancial Markets and Investment Strategies

How Basic Are Behavioral Biases? Evidence from Capuchin Monkey Trading Behavior

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Chen, M. Keith, Lakshminarayanan, Venkat, Santos, Laurie R.·2006·Journal of Political Economy

Abstract

Behavioral economics has demonstrated systematic decision‐making biases in both lab and field data. Do these biases extend across contexts, cultures, or even species? We investigate this question by introducing fiat currency and trade to a colony of capuchin monkeys and recovering their preferences over a range of goods and gambles. We show that capuchins react rationally to both price and wealth shocks but display several hallmark biases when faced with gambles, including reference dependence and loss aversion. Given our capuchins’ inexperience with money and trade, these results suggest that loss aversion extends beyond humans and may be innate rather than learned.

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Crossref · 10.1086/503550

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Authors
Chen, M. K., Lakshminarayanan, V., & Santos, L. R.
Affiliations
Yale University (US)
Venue
Journal of Political Economy
Published
2006-06
Volume
114
Issue
3
Pages
517-537
ISSN
  • 0022-3808 (ISSN-L)
  • 1537-534X
OpenAlex
W1985067115
Cited by
472
References
42
Citations by year
2026: 6 · 2025: 8 · 2024: 45 · 2023: 9 · 2022: 13 · 2021: 25 · 2020: 21 · 2019: 25 · 2018: 24 · 2017: 18 · 2016: 28 · 2015: 23 · 2014: 38 · 2013: 30 · 2012: 29
FWCI
16.89
Type
journal article
Language
en
Open access
Locations
  • Journal of Political Economy (publishedVersion)
  • SSRN Electronic Journal (submittedVersion)
Topics
  • Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
  • Social Sciences › Safety Research › Experimental Behavioral Economics Studies
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
Keywords
behavioral biases, capuchin monkeys, loss aversion, reference dependence, trade, fiat money, price shocks, wealth shocks, innate behavior, cross-species comparison

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