Negative Affect and Overconfidence: a Laboratory Investigation
نویسنده
چکیده
We conduct a carefully designed random-assignment experiment to investigate whether negative affect impacts overconfidence. Our result indicates that, compared to neutralaffect, fear and sadness significantly increase overconfidence. All decisions were incentivized, and the result is robust to various specification checks. Further, our result has implications for the role of emotions in economic decision making, in general. Finally, we reconfirm the ubiquity of overconfidence and start to explore its determinants (JEL D01, D83, D03).
منابع مشابه
Affect and Overconfidence: A Laboratory Investigation
We conduct two incentivized random-assignment experiments to investigate whether overconfidence is impacted by (1) incidental mild positive affect, or (2) incidental mild negative affects—anger, fear, and sadness. We measure overconfidence using overestimation of past quiz-performance and overestimation of past quiz-performance compared to peers. The results of the first experiment indicate tha...
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