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Effects of Feedback on Self-Assessment

Author

Listed:
  • Eberlein, Marion
  • Ludwig, Sandra
  • Nafziger, Julia

Abstract

It is a well-known phenomenon that people tend to overestimate their relative abilities. Psychological studies show that a vast majority of people thinks that their ability is above the average when they have to assess their position in a distribution of a target group. We analyse in an experiment whether this is still true when people receive feedback on their relative abilities. Our main finding is that feedback influences agent?s decisions and improves overall self-assessment.

Suggested Citation

  • Eberlein, Marion & Ludwig, Sandra & Nafziger, Julia, 2005. "Effects of Feedback on Self-Assessment," Bonn Econ Discussion Papers 39/2005, University of Bonn, Bonn Graduate School of Economics (BGSE).
    • Handle: RePEc:zbw:bonedp:392005
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    References listed on IDEAS

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    1. Bruno Biais & Denis Hilton & Karine Mazurier & Sébastien Pouget, 2005. "Judgemental Overconfidence, Self-Monitoring, and Trading Performance in an Experimental Financial Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(2), pages 287-312.
    2. Barberis, Nicholas & Thaler, Richard, 2003. "A survey of behavioral finance," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, edition 1, volume 1, chapter 18, pages 1053-1128, Elsevier.
    3. Paul Ferraro, 2005. "Know thyself: Incompetence and overconfidence," Framed Field Experiments 00148, The Field Experiments Website.
    4. Markus Noth & Martin Weber, 2003. "Information Aggregation with Random Ordering: Cascades and Overconfidence," Economic Journal, Royal Economic Society, vol. 113(484), pages 166-189, January.
    5. Dan Lovallo & Colin Camerer, 1999. "Overconfidence and Excess Entry: An Experimental Approach," American Economic Review, American Economic Association, vol. 89(1), pages 306-318, March.
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    1. Mubashar Farooq & Dr. Muhamamd Aslam Khan, 2011. "Impact of Training and Feedback on Employee Performance," Far East Journal of Psychology and Business, Far East Research Centre, vol. 5(2), pages 23-33, October.
    2. Murad, Zahra & Starmer, Chris, 2021. "Confidence snowballing and relative performance feedback," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 550-572.
    3. D. Urbig & J. Stauf & U. Weitzel, 2009. "What is your level of overconfidence? A strictly incentive compatible measurement of absolute and relative overconfidence," Working Papers 09-20, Utrecht School of Economics.
    4. Böheim, Renè & Horvath, Gerard Thomas & Winter-Ebmer, Rudolf, 2011. "Great expectations: Past wages and unemployment durations," Labour Economics, Elsevier, vol. 18(6), pages 778-785.
    5. Herz, Holger & Schunk, Daniel & Zehnder, Christian, 2014. "How do judgmental overconfidence and overoptimism shape innovative activity?," Games and Economic Behavior, Elsevier, vol. 83(C), pages 1-23.

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    Keywords

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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