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A Simple Model of Self-Assessments


Author Info

  • Silvia Dominguez Martinez

    (Faculty of Economics & Business, University of Amsterdam)

  • Otto H. Swank

    (Erasmus School of Economics, Erasmus Universiteit Rotterdam)


We develop a simple model that describes individuals’ self-assessments oftheir abilities. We assume that individuals learn about their abilities from appraisalsof others and experience. Our model predicts that if communicationis imperfect, then (i) appraisals of others tend to be too positive, and (ii) overconfidenceleading to too much activism is more likely than underconfidenceleading to too much passivity. The predictions of our model are consistentwith findings in the social psychological literature. This discussion paper has led to a publication in the ' Economic Journal ' 119(539), 1225-41.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 06-010/1.

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Date of creation: 17 Jan 2006
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Handle: RePEc:dgr:uvatin:20060010

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Keywords: self-assessments; learning about ability; coaching; overconfidence; underconfidence;

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  1. Eric Van den Steen, 2004. "Rational Overoptimism (and Other Biases)," American Economic Review, American Economic Association, vol. 94(4), pages 1141-1151, September.
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