IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0137685.html
   My bibliography  Save this article

Optimism Bias in Fans and Sports Reporters

Author

Listed:
  • Bradley C Love
  • Łukasz Kopeć
  • Olivia Guest

Abstract

People are optimistic about their prospects relative to others. However, existing studies can be difficult to interpret because outcomes are not zero-sum. For example, one person avoiding cancer does not necessitate that another person develops cancer. Ideally, optimism bias would be evaluated within a closed formal system to establish with certainty the extent of the bias and the associated environmental factors, such that optimism bias is demonstrated when a population is internally inconsistent. Accordingly, we asked NFL fans to predict how many games teams they liked and disliked would win in the 2015 season. Fans, like ESPN reporters assigned to cover a team, were overly optimistic about their team’s prospects. The opposite pattern was found for teams that fans disliked. Optimism may flourish because year-to-year team results are marked by auto-correlation and regression to the group mean (i.e., good teams stay good, but bad teams improve).

Suggested Citation

  • Bradley C Love & Łukasz Kopeć & Olivia Guest, 2015. "Optimism Bias in Fans and Sports Reporters," PLOS ONE, Public Library of Science, vol. 10(9), pages 1-7, September.
  • Handle: RePEc:plo:pone00:0137685
    DOI: 10.1371/journal.pone.0137685
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0137685
    Download Restriction: no

    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0137685&type=printable
    Download Restriction: no

    File URL: https://libkey.io/10.1371/journal.pone.0137685?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Puri, Manju & Robinson, David T., 2007. "Optimism and economic choice," Journal of Financial Economics, Elsevier, vol. 86(1), pages 71-99, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tatjana Aue & Mihai Dricu & Dominik A. Moser & Boris Mayer & Stephanie Bührer, 2021. "Comparing personal and social optimism biases: magnitude, overlap, modifiability, and links with social identification and expertise," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-12, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Herrmann, Tabea & Hübler, Olaf & Menkhoff, Lukas & Schmidt, Ulrich, 2016. "Allais for the poor," Kiel Working Papers 2036, Kiel Institute for the World Economy (IfW Kiel).
    2. Michele Dell'Era & Luis Santos-Pinto, 2011. "Entrepreneurial Overconfidence, Self-Financing and Capital Market Efficiency," Cahiers de Recherches Economiques du Département d'économie 11.06, Université de Lausanne, Faculté des HEC, Département d’économie, revised Nov 2012.
    3. Niculaescu, Corina E. & Sangiorgi, Ivan & Bell, Adrian R., 2023. "Does personal experience with COVID-19 impact investment decisions? Evidence from a survey of US retail investors," International Review of Financial Analysis, Elsevier, vol. 88(C).
    4. David Hirshleifer & Angie Low & Siew Hong Teoh, 2012. "Are Overconfident CEOs Better Innovators?," Journal of Finance, American Finance Association, vol. 67(4), pages 1457-1498, August.
    5. Despina Gavresi & Anastasia Litina & Christos A. Makridis, 2021. "Split Personalities? Behavioral Effects of Temperature on Financial Decision-making," Discussion Paper Series 2021_16, Department of Economics, University of Macedonia, revised Nov 2021.
    6. Joan Costa-Font & Cristina Vilaplana-Prieto, 2022. "Biased survival expectations and behaviours: Does domain specific information matter?," Journal of Risk and Uncertainty, Springer, vol. 65(3), pages 285-317, December.
    7. A. Alventosa & Y. Gómez & V. Martínez-Molés & J. Vila, 2016. "Location and Innovation Optimism: a Behavioral-Experimental Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(4), pages 890-904, December.
    8. Neil Garrett & Tali Sharot, 2014. "How Robust Is the Optimistic Update Bias for Estimating Self-Risk and Population Base Rates?," PLOS ONE, Public Library of Science, vol. 9(6), pages 1-8, June.
    9. Bentzen, Jeanet Sinding, 2021. "In crisis, we pray: Religiosity and the COVID-19 pandemic," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 541-583.
    10. Hannes Schwandt, 2013. "Unmet Aspirations as an Explanation for the Age U-Shape in Human Wellbeing," SOEPpapers on Multidisciplinary Panel Data Research 580, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Lepinteur, Anthony & Waltl, Sofie R., 2020. "Tracking Owners' Sentiments: Subjective Home Values, Expectations and House Price Dynamics," Department of Economics Working Paper Series 299, WU Vienna University of Economics and Business.
    12. Dimitris Christelis & Dimitris Georgarakos & Tullio Jappelli & Maarten van Rooij, 2020. "Trust in the Central Bank and Inflation Expectations," International Journal of Central Banking, International Journal of Central Banking, vol. 16(6), pages 1-37, December.
    13. Christelis, Dimitris & Georgarakos, Dimitris & Jappelli, Tullio & Pistaferri, Luigi & Rooij, Maarten van, 2021. "Heterogeneous wealth effects," European Economic Review, Elsevier, vol. 137(C).
    14. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2008. "Trusting the Stock Market," Journal of Finance, American Finance Association, vol. 63(6), pages 2557-2600, December.
    15. Christopher Dawson & David de Meza & Andrew Henley & G. Reza Arabsheibani, 2014. "Entrepreneurship: Cause and Consequence of Financial Optimism," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(4), pages 717-742, December.
    16. Talwar, Manish & Talwar, Shalini & Kaur, Puneet & Tripathy, Naliniprava & Dhir, Amandeep, 2021. "Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    17. Bharati, Rakesh & Doellman, Thomas & Fu, Xudong, 2016. "CEO confidence and stock returns," Journal of Contemporary Accounting and Economics, Elsevier, vol. 12(1), pages 89-110.
    18. Alexander Zimper & Alexander Ludwig & Max Groneck, 2012. "A Life-Cycle Consumption Model with Ambiguous Survival Beliefs," 2012 Meeting Papers 693, Society for Economic Dynamics.
    19. Parker, Simon C., 2006. "A Selection-Based Theory of the Transition from Employment to Entrepreneurship: The Role of Employer Size," IZA Discussion Papers 2071, Institute of Labor Economics (IZA).
    20. Bazley, William J. & Bonaparte, Yosef & Korniotis, George M., 2021. "Financial Self-awareness: Who Knows What They Don’t Know?," Finance Research Letters, Elsevier, vol. 38(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0137685. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.