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Self Centred Beliefs: An Empircal Approach

Author

Listed:
  • Proto, Eugenio

    (University of Warwick)

  • Sgroi, Daniel

    (University of Warwick)

Abstract

We 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

Suggested Citation

  • Proto, Eugenio & Sgroi, Daniel, 2012. "Self Centred Beliefs: An Empircal Approach," CAGE Online Working Paper Series 75, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:75
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    subjective beliefs; attitudes; observable characteristics; self-centered bias;

    JEL classification:

    • 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

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