This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Overconfidence in interval estimates: What does expertise buy you?

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
McKenzie, Craig R.M.
Liersch, Michael J.
Yaniv, Ilan
Abstract

People's 90% subjective confidence intervals typically contain the true value about 50% of the time, indicating extreme overconfidence. Previous results have been mixed regarding whether experts are as overconfident as novices. Experiment 1 examined interval estimates from information technology (IT) professionals and UC San Diego (UCSD) students about both the IT industry and UCSD. This within-subjects experiment showed that experts and novices were about equally overconfident. Experts reported intervals that had midpoints closer to the true value--which increased hit rate--and that were narrower (i.e., more informative)--which decreased hit rate. The net effect was no change in hit rate and overconfidence. Experiment 2 showed that both experts and novices mistakenly expected experts to be much less overconfident than novices, but they correctly predicted that experts would provide narrower intervals with midpoints closer to the truth. Decisions about whether to consult experts should be based on which aspects of performance are desired.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/B6WP2-4S563TJ-1/2/236657ae5f0eca31ecd204dbd8f26633
File Format:
File Function:
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Elsevier in its journal Organizational Behavior and Human Decision Processes.

Volume (Year): 107 (2008)
Issue (Month): 2 (November)
Pages: 179-191
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:eee:jobhdp:v:107:y:2008:i:2:p:179-191

Contact details of provider:
Web page: http://www.elsevier.com/locate/obhdp

For technical questions regarding this item, or to correct its listing, contact: (Heidi Boesdal).

Related research
Keywords: Overconfidence Expertise Interval estimates;

Statistics
Access and download statistics

Did you know? Over 80% of the top 1000 economists are registered on RePEc.

This page was last updated on 2009-12-30.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.