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Overconfidence, Alcohol and the Environment: Evidence from a Lab-in-the-Field Experiment

Author

Listed:
  • Long, Iain W

    (Cardiff Business School)

  • Matthews, Kent

    (Cardiff Business School)

  • Sivarajasingam, Vaseekaran

    (Cardiff University,School of Dentistry)

Abstract

Alcohol has long been known as the demon drink; an epithet owed to numerous social ills associated with it. Our lab-in-the-field experiment assesses the extent to which intoxication leads to changes in overconfidence or cognitive ability that are often linked to problematic behaviours. Results suggest that it is the joint effect of being intoxicated in a bar that matters. Subjects systematically underestimated their magnitude, suggesting that they cannot be held fully accountable for their actions.

Suggested Citation

  • Long, Iain W & Matthews, Kent & Sivarajasingam, Vaseekaran, 2022. "Overconfidence, Alcohol and the Environment: Evidence from a Lab-in-the-Field Experiment," Cardiff Economics Working Papers E2022/6, Cardiff University, Cardiff Business School, Economics Section.
    • Handle: RePEc:cdf:wpaper:2022/6
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Alcohol intoxication; overconfidence;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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