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The role of overconfidence in overweighting private information: Does gender matter?

Author

Listed:
  • Cao, Qian
  • Li, Jianbiao
  • Niu, Xiaofei

Abstract

This paper analyzes gender differences of overweighting private information in a social learning game. The results show that male participants’ fraction of choosing in line with private signal is significantly higher than female, i.e. men are more likely to follow their own private information than women. This gender effect is primarily salient in the incongruent rounds where a participant receives a private signal that is against with majority of the public information. However, no significant gender differences of overweighting private information are found in the congruent rounds where a participant receives a private signal that matches with majority of public information. In addition, we find that overweighting private information is positively correlated with overconfidence; men are more overconfident than women; a mediation analysis reveals that overconfidence explains the gender differences of overweighting private information.

Suggested Citation

  • Cao, Qian & Li, Jianbiao & Niu, Xiaofei, 2019. "The role of overconfidence in overweighting private information: Does gender matter?," EconStor Preprints 203448, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:203448
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    References listed on IDEAS

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    More about this item

    Keywords

    overweighting private information; gender; overconfidence;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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