Pragmatic Beliefs and Overconfidence

14 Pages Posted: 7 Feb 2000

See all articles by Hans K. Hvide

Hans K. Hvide

University of Bergen - Department of Economics; University of Aberdeen - Business School; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

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

Hvide, Hans, Pragmatic Beliefs and Overconfidence. Available at SSRN: https://ssrn.com/abstract=204648 or http://dx.doi.org/10.2139/ssrn.204648

Hans Hvide (Contact Author)

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007
Norway

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

HOME PAGE: http://hans.hvide.googlepages.com/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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