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Previous work on the Dunning–Kruger effect has shown that poor performers often show little insight into the shortcomings in their performance, presumably because they suffer a double curse. Deficits in their knowledge prevent them from both producing correct responses and recognizing that the...
Persistent link: https://www.econbiz.de/10011051336
, we study whether, and to what extent, the miscalibration (largely, overconfidence) of the unskilled can be reduced by … the first study, participants improve their calibration after being exposed to naturally available information in the form … of environmental feedback (i.e., feedback about the nature of the task) and calibration feedback (i.e., feedback about …
Persistent link: https://www.econbiz.de/10011051337
Contract compliance is key for economic growth. However, determinants affecting contract breach are not yet well understood. In this paper, we focus on contract situations with a potential hold-up problem, such as contract farming agreements which are prevalent in many developing countries. We...
Persistent link: https://www.econbiz.de/10012201854
Contract compliance is key for economic growth. However, determinants affecting contract breach are not yet well understood. In this paper, we focus on contract situations with a potential hold-up problem, such as contract farming agreements which are prevalent in many developing countries. We...
Persistent link: https://www.econbiz.de/10012200093
Overconfidence in one's relative performance within a group is a wide-spread phenomenon. Similar to individual (or … within-group) overconfidence, it was also shown that individuals are, on average, overconfident about the performance of … their group relative to other groups. We hypothesize that this between-group overconfidence should mitigate within …
Persistent link: https://www.econbiz.de/10010902505
the relative standing of their group among other groups. On average, individuals exhibit overconfidence bias in both types …, the salience of between-group judgments should mitigate within-group overconfidence. Our second hypothesis is that within …-group overconfidence is reduced in the presence of group identity. Using a 2×2 between-subject design, we test, and find strong support for …
Persistent link: https://www.econbiz.de/10011051357
This study investigates the quality of direct probability judgments and quantile estimates with a focus on calibration …
Persistent link: https://www.econbiz.de/10009191751
This paper investigates collective denial and willful blindness in groups, organizations and markets. Agents with anticipatory preferences, linked through an interaction structure, choose how to interpret and recall public signals about future prospects. Wishful thinking (denial of bad news) is...
Persistent link: https://www.econbiz.de/10010293122
We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011584855
We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011557745