Self-Centered Beliefs: An Empirical Approach

Eugenio Proto and Daniel Sgroi

No 270746, Economic Research Papers from University of Warwick - Department of Economics

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 find 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.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 39
Date: 2012-02
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Related works:
Working Paper: Self Centred Beliefs: An Empircal Approach (2012)
Working Paper: Self-Centered Beliefs: An Empirical Approach (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:270746

DOI: 10.22004/ag.econ.270746

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