This paper reports findings of a laboratory experiment, which explores how elfassessment regarding the own relative … observe that underconfidence beats overconfidence in both respects. Underconfident subjects are rewarded significantly more …

We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a … possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more … results to the literature on empirically observed overconfidence and excessive risk taking in several domains of financial and …