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A Model of Positive Self-Image in Subjective Assessments

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Author Info
Luís Santos-Pinto
Joel Sobel

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Abstract

This paper suggests a mechanism that describes individuals' positive self-image in subjective assessments of their relative abilities. The mechanism assumes individuals have heterogeneous production functions that determine ability as a function of multiple skills; make skill-enhancing investments with the goal of maximizing their ability; and make ability comparisons using their own production function. Within this framework, the paper provides conditions under which there is positive self-image. Positive self-image is increasing in the ease of the task, the number of different skills needed for the task, and the variability of production technologies in the population.

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File URL: http://hdl.handle.net/10.1257/000282805775014245
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File URL: http://www.aeaweb.org/articles/article_detail.php?journal=AER&volume=95&issue=5&article=3&issue_date=December2005
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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 95 (2005)
Issue (Month): 5 (December)
Pages: 1386-1402
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Handle: RePEc:aea:aecrev:v:95:y:2005:i:5:p:1386-1402

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Eric Van den Steen, 2004. "Rational Overoptimism (and Other Biases)," American Economic Review, American Economic Association, vol. 94(4), pages 1141-1151, September. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Santos-Pinto, Luís, 2005. "Positive self-image over time," MPRA Paper 3145, University Library of Munich, Germany, revised 27 Apr 2006. [Downloadable!]
    Other versions:
  2. Isabelle Brocas & Juan D. Carrillo, 2005. "Biases in Perceptions, Beliefs and Behavior," Levine's Bibliography 172782000000000063, UCLA Department of Economics. [Downloadable!]
  3. Santos-Pinto, Luís & Park, Young-Joon, 2004. "Forecasts of relative performance in tournaments: evidence from the field," MPRA Paper 3144, University Library of Munich, Germany, revised 22 Mar 2007. [Downloadable!]
  4. Jean Pierre Benoit & Juan Dubra, 2008. "Overconfidence?," Levine's Working Paper Archive 122247000000002142, David K. Levine. [Downloadable!]
    Other versions:
  5. Zafer Akin, 2008. "Imperfect Information Processing in Sequential Bargaining Games with Present Biased Preferences," Working Papers 0810, TOBB University of Economics and Technology, Department of Economics. [Downloadable!]
    Other versions:
  6. repec:bep:mactop:v:7:y:2007:i:1:p:1495-1495 is not listed on IDEAS
  7. Colin F. Camerer & Thomas R. Palfrey & Brian W. Rogers, 2006. "Heterogeneous Quantal Response Equilibrium," Levine's Bibliography 321307000000000193, UCLA Department of Economics. [Downloadable!]
  8. Juan D Carrillo & Isabelle Brocas, 2007. "Systematic errors in decision-making," Levine's Bibliography 122247000000001473, UCLA Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-16.

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