Self-Centered Beliefs : An Empirical Approach
AbstractWe perform an experiment designed to assess the accuracy of beliefs about distributions. The beliefs relate to behavior (mobile phone purchasing decisions, hypothetical restaurant choices), attitudes (happiness, politics) and observable characteristics (height, weight) and are typically formed through real world experiences. We nd a powerful and ubiquitous bias in perceptions that is \self-centered" in the sense that an individual's beliefs about the population distribution changes with their own position in the distribution. In particular, those at extremes tend to perceive themselves as closer to the middle of the distribution than is the case. We discuss possible explanations for this bias. Key words: subjective beliefs ; attitudes ; observable characteristics ; self-centered bias JEL classification: D03 ; C83 ; D84
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Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 978.
Date of creation: 2012
Date of revision:
Other versions of this item:
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-14 (All new papers)
- NEP-EVO-2012-03-14 (Evolutionary Economics)
- NEP-EXP-2012-03-14 (Experimental Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- We all have self-centered beliefs about others
by Economic Logician in Economic Logic on 2012-03-20 14:29:00
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