Download This PaperDoes the Better-than-Average Effect Show that People are Overconfident?: An Experiment
21 Pages Posted: 5 Feb 2009
Date Written: February 4, 2009
Abstract
We conduct a proper test of the claim that people are overconfident, in the sense that they believe that they are better than others. The results of the experiment we present do not allow us to reject the hypotheses that the data has been generated by perfectly rational, unbiased, and appropriately confident agents.
Keywords: Overconfidence, Better than Average, Experimental Economics, Irrationality, Signalling Models
JEL Classification: D11, D12, D82, D83
Suggested Citation: Suggested Citation
Don A. Moore
University of California, Berkeley - Haas School of Business ( email )
545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States
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