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Strategically delusional

Author

Listed:
  • Alice Solda

    () (Queensland University of Technology; University of Lyon)

  • Changxia Ke

    () (Queensland University of Technology)

  • Lionel Page

    () (Queensland University of Technology; University of Technology Sydney)

  • William von Hippel

    () (University of Queensland)

Abstract

We aim to test the hypothesis that overconfidence arises as a strategy to influence others in social interactions. We design an experiment in which participants are incentivised either to form accurate beliefs about their performance at a test, or to convince a group of other participants that they performed well. We also vary participants’ ability to gather information about their performance. Our results provide, the different empirical links of von Hippel and Trivers’ (2011) theory of strategic overconfidence.

Suggested Citation

  • Alice Solda & Changxia Ke & Lionel Page & William von Hippel, 2019. "Strategically delusional," Working Paper Series 2019/05, Economics Discipline Group, UTS Business School, University of Technology, Sydney.
  • Handle: RePEc:uts:ecowps:2019/05
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    File URL: https://www.uts.edu.au/sites/default/files/2019-06/Lionel%20Page%20strategically.pdf
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    References listed on IDEAS

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    Cited by:

    1. Barron, Kai & Gravert, Christina, 2018. "Confidence and Career Choices: An Experiment," Working Papers in Economics 715, University of Gothenburg, Department of Economics.
    2. Barron, Kai, 2020. "Belief updating: does the `good-news, bad-news' asymmetry extend to purely financial domains?," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics.
    3. Banerjee, Ritwik & Gupta, Nabanita Datta & Villeval, Marie Claire, 2020. "Feedback spillovers across tasks, self-confidence and competitiveness," Games and Economic Behavior, Elsevier, vol. 123(C), pages 127-170.
    4. Barron, Kai, 2020. "Belief updating: does the `good-news, bad-news' asymmetry extend to purely financial domains?," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics.
    5. Christine L. Exley & Judd B. Kessler, 2019. "The Gender Gap in Self-Promotion," NBER Working Papers 26345, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Overconfidence; motivated cognition; self-deception; persuasion; information sampling; experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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