A proper test of overconfidence

Benoît, Jean-Pierre and Dubra, Juan and Moore, Don (2008): A proper test of overconfidence.

Abstract

In this paper we conduct two proper tests of overconfidence. We reject the hypothesis "the data cannot be generated by a rational model" in both experiments.

• Item Type: MPRA Paper
• Language: English
• Keywords: Overconfidence; Better than Average; Experimental Economics; Irrationality; Signalling Models
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory; D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness

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