Overconfidence?

46 Pages Posted: 30 Jan 2008 Last revised: 5 Feb 2009

See all articles by Jean-Pierre Benoit

Jean-Pierre Benoit

London Business School - Department of Economics

Juan Dubra

University of Montevideo - Department of Economics

Date Written: January 2009

Abstract

Many studies have shown that people display an apparent overconfidence. In particular, it is common for a majority of people to describe themselves as better than average. The literature takes for granted that this better-than-average effect is problematic. We argue, however, that, even accepting these studies completely on their own terms, there is nothing at all wrong with a strict majority of people rating themselves above the median.

Keywords: Overconfidence, Better than Average, Experiments, Irrationality, Signalling Models

JEL Classification: D11, D12, D82, D83

Suggested Citation

Benoit, Jean-Pierre and Dubra, Juan, Overconfidence? (January 2009). Available at SSRN: https://ssrn.com/abstract=1088746 or http://dx.doi.org/10.2139/ssrn.1088746

Jean-Pierre Benoit

London Business School - Department of Economics ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom

Juan Dubra (Contact Author)

University of Montevideo - Department of Economics ( email )

Prudencio de Pena 2440
Montevideo, CP 11600
Uruguay
5982 707 4461 (Phone)

HOME PAGE: http:\\www2.um.edu.uy\dubraj

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