Overconfident Behavior In Informational Cascades: An Eye-Tracking Study

Alessandro Innocenti (), Alessandra Rufa () and Jacopo Semmoloni ()

Department of Economic Policy, Finance and Development (DEPFID) University of Siena from Department of Economic Policy, Finance and Development (DEPFID), University of Siena

Abstract: This paper investigates the validity of the Dual Process theory by using eye-tracking methods to trace the process of attention during a non-preference-based problem solving task, i.e. informational cascades. In this setting, gaze direction may convey evidence on how automatic detection is modified or sustained by controlled search. We provide laboratory evidence that gaze direction is driven by cognitive biases, such as overconfidence. In particular, we find a significant statistical correlation between first fixations and subjects’ actual choices. Our results suggest that attentional strategies are not necessarily consistent with efficient patterns of information collecting.

Keywords: dual process theory; eye-tracking; cognitive biases; overconfidence; informational cascades. (search for similar items in EconPapers)
JEL-codes: C91 D82 D83 D87 (search for similar items in EconPapers)
Date: 2009-09
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-neu
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:usi:depfid:1109

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