Pragmatic Beliefs and Overconfidence
14 Pages Posted: 7 Feb 2000
Abstract
Several studies indicate that humans are overconfident about their own (relative) abilities. The paper proposes a notion of pragmatic beliefs, and shows through an example that this concept can shed light on why overconfidence emerges. Through the example, we also shed light on the idea that that 'bounded rationality' may arise endogenously in a game - without assuming complexity costs.
JEL Classification: C7, C9, D8, J0
Suggested Citation: Suggested Citation
Hvide, Hans, Pragmatic Beliefs and Overconfidence. Available at SSRN: https://ssrn.com/abstract=204648 or http://dx.doi.org/10.2139/ssrn.204648
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Overconfidence in the Continuous-Time Principal-Agent Problem
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.