Arbeitspapier
Motivated Belief Updating and Rationalization of Information
We study belief updating about relative performance in an ego-relevant task. Manipulating the perceived ego-relevance of the task, we show that subjects update their beliefs optimistically because they derive direct utility flows from holding positive beliefs. This finding provides a behavioral explanation why and how overconfidence can evolve in the presence of objective information. Moreover, we document that subjects, who received more bad signals, downplay the ego-relevance of the task. Taken together, these findings suggest that subjects use two alternative strategies to protect their ego when presented with objective information.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 15682
- Klassifikation
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Expectations; Speculations
- Thema
-
motivated beliefs
optimistic belief updating
overconfidence
direct belief utility
Bayes' rule
ex-post rationalization
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Drobner, Christoph
Goerg, Sebastian J.
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute of Labor Economics (IZA)
- (wo)
-
Bonn
- (wann)
-
2022
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Drobner, Christoph
- Goerg, Sebastian J.
- Institute of Labor Economics (IZA)
Entstanden
- 2022
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