A model of rational bias in self-assessments

B-Tier
Journal: Economic Theory
Year: 2004
Volume: 23
Issue: 2
Pages: 259-282

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

A body of empirical work documents that most people believe they are above average in a variety of skills and abilities. This paper argues that such evidence does not necessarily imply that people process information in an irrational way. I build a model in which people can learn about their abilities at a cost of foregone production. Individuals in this model keep testing their abilities until their self-assessments become favorable enough, at which point they stop. This way, a disproportionately large share of the population ends up with a high opinion about their abilities. Copyright Springer-Verlag Berlin/Heidelberg 2004

Technical Details

RePEc Handle
repec:spr:joecth:v:23:y:2004:i:2:p:259-282
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29