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Does the better –than- average effect show that people are Overconfident?: two experiments

Jean-Pierre Benoit, Juan Dubra () and Don Moore

No 1301, Documentos de Trabajo/Working Papers from Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo.

Abstract: We conduct two experiments of the claim that people are overconfident, using new tests of overplacement that are based on a formal Bayesian model. Our two experi- ments, on easy quizzes, find overplacement. More precisely, we find apparently over- confident data that cannot be accounted for by a rational population of expected utility maximizers with a good understanding of the nature of the quizzes they took. The finding is of particular interest because Benoit and Dubra (2011) have shown that the vast majority of the existing findings on the better-than-average efect are actually consistent with Bayesian updating.

Keywords: Overcon?dence; Better than Average; Experimental Economics; Irrationality; Signalling Models. (search for similar items in EconPapers)
JEL-codes: D11 D12 D82 D83 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
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http://www.um.edu.uy/docs/working_paper_um_cee_2013_01.pdf (application/pdf)

Related works:
Journal Article: DOES THE BETTER-THAN-AVERAGE EFFECT SHOW THAT PEOPLE ARE OVERCONFIDENT?: TWO EXPERIMENTS (2015) Downloads
Working Paper: Does the Better-Than-Average Effect Show That People Are Overconfident?: Two Experiments (2013) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:mnt:wpaper:1301

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