Author

Benoit, Jean Pierre ; Dubra, Juan

Editor

Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía, Departamento de Economía

Date

2011

Extensión

28 p.

Abstract

It is common for a majority of people to rank themselves as better than average on simple tasks and worse than average on difficult tasks. The literature takes for granted that this apparent misconfidence is problematic. We argue, however, that this behaviour is consistent with purely rational Bayesian updaters. In fact, better-than average data by itself cannot be used to show overconfidence; we indicate which type of data can be used. Our theory is consistent with empirical patterns found in the literature.

Palabras claves

Overconfidence Experimental Economics Irrationality Signalling Models

Tipo

Documento de trabajo

Derechos

Abierto

Versión

Publicada

En

Documentos de trabajo del Departamento de Economía; UM_CEE_2011_06

Collections

• Documentos de trabajo [65]