How do risk attitudes affect measured confidence?

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 2016
Volume: 52
Issue: 1
Pages: 21-46

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract We examine the relationship between confidence in own absolute performance and risk attitudes using two confidence elicitation procedures: self-reported (non-incentivised) confidence and an incentivised procedure that elicits the certainty equivalent of a bet based on performance. The former procedure reproduces the “hard-easy effect” (underconfidence in easy tasks and overconfidence in hard tasks) found in a large number of studies using non-incentivised self-reports. The latter procedure produces general underconfidence, which is significantly reduced, but not eliminated when we filter out the effects of risk attitudes. Finally, we find that self-reported confidence correlates significantly with features of individual risk attitudes including parameters of individual probability weighting.

Technical Details

RePEc Handle
repec:kap:jrisku:v:52:y:2016:i:1:d:10.1007_s11166-016-9231-1
Journal Field
Theory
Author Count
3
Added to Database
2026-01-26