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Does the Better-Than-Average Effect Show That People Are Overconfident?: An Experiment

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Author Info
Benoît, Jean-Pierre
Dubra, Juan
Moore, Don

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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.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13168.

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Date of creation: 02 Feb 2009
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Handle: RePEc:pra:mprapa:13168

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Related research
Keywords: Overconfidence; Better than Average; Experimental Economics; Irrationality; Signalling Models.;

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Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information

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    Other versions:
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    Other versions:
  3. Peng, Lin & Xiong, Wei, 2006. "Investor attention, overconfidence and category learning," Journal of Financial Economics, Elsevier, vol. 80(3), pages 563-602, June. [Downloadable!] (restricted)
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  17. Brad M. Barber & Terrance Odean, 2001. "Boys Will Be Boys: Gender, Overconfidence, And Common Stock Investment," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 261-292, February. [Downloadable!] (restricted)
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This page was last updated on 2009-11-23.

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