Journal Article10.1162/JEEA.2006.4.4.673
Ego utility, overconfidence, and task choice
TL;DR: In this article, the authors model behavior when a decision maker cares about and manages her self-image and derive "ego utility" from positive views about her ability to do well in a skill-sensitive, "ambitious" task.
read more
Abstract: This paper models behavior when a decision maker cares about and manages her self-image. In addition to having preferences over material outcomes, the agent derives “ego utility” from positive views about her ability to do well in a skill-sensitive, “ambitious,” task. Although she uses Bayes’ rule to update beliefs, she tends to become overconfident regarding which task is appropriate for her. If tasks are equally informative about ability, her task choice is also overconfident. If the ambitious task is more informative about ability, she might initially display underconfidence in behavior, and, if she is disappointed by her performance, later become too ambitious. People with ego utility prefer to acquire free information in smaller pieces. Applications to employee motivation and other economic settings are discussed. (JEL: D83, D11)
read more
Chat with Paper
AI Agents for this Paper
Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps
Citations
Choosing to be trained: Do behavioral traits matter?
TL;DR: In this article, the determinants of self-selection into a vocational training program in India were examined using data from an artefactual field experiment with survey data collected from the targeted community.
•Posted Content
Overconfidence is a social signaling bias
Stephen V. Burks,Jeffrey P. Carpenter,Jeffrey P. Carpenter,Lorenz Goette,Lorenz Goette,Lorenz Goette,Aldo Rustichini +6 more
TL;DR: Kőszegi et al. as discussed by the authors found that overconfidence is most likely induced by social concerns than by either of the other two factors, and that personality traits strongly affect relative ability judgments.
Unemployed But Optimistic: Optimal Insurance Design with Biased Beliefs
TL;DR: In this article, the authors show empirically that unemployed workers overestimate how quickly they will find work, but underestimate the return to their search efforts, and that with biased beliefs, contracts equalizing the marginal smoothing benefit and the moral hazard cost of insurance are suboptimal.
•Posted Content
Obvious Mistakes in a Strategically Simple College Admissions Environment
Ran I. Shorrer,Sándor Sóvágó +1 more
TL;DR: This paper showed that college applicants make obvious mistakes: they forgo the free opportunity to receive a tuition waiver worth thousands of dollars, and at least 10 percent of the applicants made such mistakes in 2013.
35
An Economic Model of the Planning Fallacy
TL;DR: The authors showed that people underpredict and procrastinate because the ex-ante utility benefits of anticipating that a task will be easy to complete outweigh the average ex-post costs of poor planning.
References
•Book
A Theory of Cognitive Dissonance
Leon Festinger
- 01 Jan 1957
TL;DR: Cognitive dissonance theory links actions and attitudes as discussed by the authors, which holds that dissonance is experienced whenever one cognition that a person holds follows from the opposite of at least one other cognition that the person holds.
22.7K
Advances In Experimental Social Psychology
Abstract: Advances in Experimental Social Psychology continues to be one of the most sought after and most often cited series in this field. Containing contributions of major empirical and theoretical interest, this series represents the best and the brightest in new research, theory, and practice in social psychology. This serial is part of the Social Sciences package on ScienceDirect. Visit info.sciencedirect.com for more information. Advances in Experimental Social Psychology is available online on ScienceDirect - full-text online of volume 32 onward. Elsevier book series on ScienceDirect gives multiple users throughout an institution simultaneous online access to an important complement to primary research. Digital delivery ensures users reliable, 24-hour access to the latest peer-reviewed content. The Elsevier book series are compiled and written by the most highly regarded authors in their fields and are selected from across the globe using Elsevier's extensive researcher network. For more information about the Elsevier Book Series on ScienceDirect Program, please visit store.elsevier.com.One of the most sought after and most often cited series in this fieldContains contributions of major empirical and theoretical interestRepresents the best and the brightest in new research, theory, and practice in social psychology
19.7K
•Book
Handbook of social psychology
Susan T. Fiske,Daniel T. Gilbert,Gardner Lindzey +2 more
- 01 Jan 1935
TL;DR: In this paper, Neuberg and Heine discuss the notion of belonging, acceptance, belonging, and belonging in the social world, and discuss the relationship between friendship, membership, status, power, and subordination.
18.5K
•Book
The psychology of interpersonal relations
Fritz Heider
- 01 Jan 1958
TL;DR: The psychology of interpersonal relations as mentioned in this paper, The psychology in interpersonal relations, The Psychology of interpersonal relationships, کتابخانه دیجیتال و فن اطلاعات دانشگاه امام صادق(ع)
15.9K
Illusion and well-being: a social psychological perspective on mental health
TL;DR: Research suggesting that certain illusions may be adaptive for mental health and well-being is reviewed, examining evidence that a set of interrelated positive illusions—namely, unrealistically positive self-evaluations, exaggerated perceptions of control or mastery, and unrealistic optimism—can serve a wide variety of cognitive, affective, and social functions.