A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
- Topic classification is ongoing.
- Please kindly let me know [mingze.gao@sydney.edu.au] in case of any errors.
Confidence, Self-Selection, and Bias in the Aggregate
Resource type
Authors/contributors
- Enke, Benjamin (Author)
- Graeber, Thomas (Author)
- Oprea, Ryan (Author)
Title
Confidence, Self-Selection, and Bias in the Aggregate
Abstract
The influence of behavioral biases on aggregate outcomes depends in part on self-selection: whether rational people opt more strongly into aggregate interactions than biased individuals. In betting market, auction and committee experiments, we document that some errors are strongly reduced through self-selection, while others are not affected at all or even amplified. A large part of this variation is explained by differences in the relationship between confidence and performance. In some tasks, they are positively correlated, such that self-selection attenuates errors. In other tasks, rational and biased people are equally confident, such that self-selection has no effects on aggregate quantities.
Publication
American Economic Review
Volume
113
Issue
7
Pages
1933-66
Date
2023-07
Citation
Enke, B., Graeber, T., & Oprea, R. (2023). Confidence, Self-Selection, and Bias in the Aggregate. American Economic Review, 113, 1933–1966.
Journals
Link to this record