Thoughts on quantifying overconfidence in economic experiments

Julija Michailova () and Joana K. Q. Katter

MPRA Paper from University Library of Munich, Germany

Abstract: This article illustrates the difficulties in quantifying overconfidence in experimental finance and outlines a procedure for the development of a reliable overconfidence measurement instrument. Following the suggested two-stage procedure a sample measure of overconfidence is developed. First a pilot test is conducted to divide the initial fifty items into three difficulty levels: hard, moderate and easy questions. A final test was compiled of six questions of each difficulty levels. In the second phase a replicability check was run with the final instrument.

Keywords: miscalibration; overconfidence; overconfidence quantification; instrument development; experimental finance; economic experiments. (search for similar items in EconPapers)
JEL-codes: C49 C80 C90 (search for similar items in EconPapers)
Date: 2013-01, Revised 2014-01
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https://mpra.ub.uni-muenchen.de/53112/8/MPRA_paper_53112.pdf original version (application/pdf)

Related works:
Working Paper: Thoughts on quantifying overconfidence in economic experiments (2013)
Working Paper: Development of the overconfidence measurement instrument for the economic experiment (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:53112

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