Does the Better-than-Average Effect Show that People are Overconfident?: Two Experiments

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type , Preprint 01 Jan 2009 English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: Benoît, Jean-Pierre; Dubra, Juan; Moore, Don;

doi: 10.2139/ssrn.2231557 , 10.2139/ssrn.1337733 , 10.2139/ssrn.2446017

Does the Better-than-Average Effect Show that People are Overconfident?: Two Experiments

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Abstract

We conduct a proper test of the claim that people are overconfident, in the sense that they believe that they are better than others. The results of the experiment we present do not allow us to reject the hypotheses that the data has been generated by perfectly rational, unbiased, and appropriately confident agents.

Related Organizations

University of Montevideo
Uruguay
University of California, Berkeley
United States
London Business School
United Kingdom

Keywords

Overconfidence; Better than Average; Experimental Economics; Irrationality; Signalling Models, Overcon?dence; Better than Average; Experimental Economics; Irrationality; Signalling Models., Overconfidence; Better than Average; Experimental Economics; Irrationality; Signalling Models., jel: jel:D80, jel: jel:D82, jel: jel:D1, jel: jel:D83, jel: jel:D11, jel: jel:D12, jel: jel:D8

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