Understanding the Impact of Stereotype Threat on Decision Making

Behavioral economist Linda Babcock and a team of three psychologists will investigate the impact of stereotype threat on college students’ decision making that can lead to educational disparities across categories such as race, gender, and socioeconomic status. They will examine how stereotype threat impacts students’ attitudes toward risk (risk aversion), how students weigh losses versus gains in evaluating risky situations (loss aversion), and how they spend their time on activities where the benefits will accrue now versus in the future (present bias). Their study will include laboratory and field experiments assessing the impact of stereotype threat on decision-making and evaluating practical interventions designed to mitigate the negative effects of stereotype threat on academic behaviors and outcomes.