competence hypothesis (Heath & Tversky, 1991), this pattern derives from favorable perceptions of one's competence. In most past … tests of the competence hypothesis, ambiguity is confounded with personal controllability and the source of the ambiguity (e … effects of both ambiguity aversion and competence. In Experiment 1, participants preferred an unambiguous chance-based option …

-sided ambiguity and pure risk. Our results show a significant relationship between individual overconfidence and competence measures …) competence, the perception of feeling knowledgeable or competent in an area and 2) overconfidence, the well documented result … and elicited values of lotteries in a financial decision context. Further, the interaction of overconfidence, competence …