Overconfidence as a social bias: Experimental evidence
2014 | journal article. A publication with affiliation to the University of Göttingen.
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Details
- Authors
- Proeger, Till E. ; Meub, Lukas
- Abstract
- The overconfidence bias is discussed extensively in economic studies, yet fails to hold experimentally once monetary incentives and feedback are implemented. We consider overconfidence as a social bias. For a simple real effort task, we show that, individually, economic conditions effectively prevent overconfidence. By contrast, the introduction of a very basic, purely observational social setting fosters overconfident self-assessments. Additionally, observing others' actions effectively eliminates underconfidence compared to the individual setting. (C) 2013 Elsevier B.V. All rights reserved.
- Issue Date
- 2014
- Status
- published
- Publisher
- Elsevier Science Sa
- Journal
- Economics Letters
- ISSN
- 1873-7374; 0165-1765