Do people tend to be overconfident? Many think so. They’ve run studies on whether people are calibrated: whether their average confidence in their opinions matches the proportion of those opinions that are true. Under certain conditions, people are systematically ‘over-calibrated’—for example, of the opinions they’re 80% confident in, only 60% are true. From this empirical over-calibration, it’s inferred that people are irrationally overconfident. My question: When and why is this inference warranted? Answering it requires articulating a general connection between being (...) rational and being right—something extant studies have not done. I show how to do so using the notion of deference. This provides a theoretical foundation for calibration research, but also reveals a flaw: the connection between being rational and being right is much weaker than is standardly assumed, since rational people can often be expected to be miscalibrated. Thus we can’t test whether people are overconfident by simply testing whether they are over-calibrated; instead, we must try to predict the rational deviations from calibration, and then compare those predictions to people’s performance. I show how this can be done—and that doing so complicates the interpretation of robust empirical effects. (shrink)

Vice essentialism is the view that epistemic vices have robustly negative effects on our epistemic projects. Essentialists believe that the manifestation of epistemic vices can explain many of our epistemic failures, but few, if any, of our epistemic successes. The purpose of this paper is to argue that vice essentialism is false. In §1, I review the case that some epistemic vices, such as closed-mindedness and extreme epistemic deference, have considerably beneficial effects when manifested in collectivist contexts. In §2, I (...) add that there are putative epistemic vices whose repeated manifestation leads to significant epistemic achievements over time. Epistemic recklessness is one such unstable vice. Though Sosa argues that epistemically reckless judgements cannot constitute knowing full well, the repeated manifestation of epistemic recklessness is essential to our becoming fully well knowledgeable in the long run. Without making incompetent judgements in environments that offer unambiguous, actionable feedback, we could not develop the intuitive and reflective competences and meta-competences required for knowing full well. (shrink)

Physicians and other medical practitioners make untold numbers of judgments about patient care on a daily, weekly, and monthly basis. These judgments fall along a number of spectrums, from the mundane to the tragic, from the obvious to the challenging. Under the rubric of evidence-based medicine, these judgments will be informed by the robust conclusions of medical research. In the ideal circumstance, medical research makes the best decision obvious to the trained professional. Even when practice approximates this ideal, it does (...) so unevenly. Judgments in medical practice are always accompanied by uncertainty, and this uncertainty is a fickle companion—constant in its presence but inconstant in its expression. This feature of medical judgments gives rise to the moral responsibility of medical practitioners to be epistemically humble. This requires the recognition and communication of the uncertainty that accompanies their judgment as well as a commitment to avoiding intuitive innovations. (shrink)

Resource rationality may explain suboptimal patterns of reasoning; but what of “anti-Bayesian” effects where the mind updates in a direction opposite the one it should? We present two phenomena — belief polarization and the size-weight illusion — that are not obviously explained by performance- or resource-based constraints, nor by the authors’ brief discussion of reference repulsion. Can resource rationality accommodate them?

Philosophers tend to be pretty impressed by human self-knowledge. Descartes (1641/1984) thought our knowledge of our own stream of experience was the secure and indubitable foundation upon which to build our knowledge of the rest of the world. Hume – who was capable of being skeptical about almost anything – said that the only existences we can be certain of are our own sensory and imagistic experiences (1739/1978, p. 212). Perhaps the most prominent writer on self-knowledge in contemporary philosophy is (...) Sydney Shoemaker. The central aim of much of his work has been to show that certain sorts of error are impossible (1963, 1988, 1994). David Chalmers has likewise attempted to show that, for a suitably constrained class of beliefs about one’s own consciousness, error is impossible (2003, sec. 4.1). Even philosophers most of the community thinks of as pessimistic about self-knowledge of consciousness seem to me, really, to be fairly optimistic. Paul Churchland, famous for his disdain of ordinary people’s knowledge about the mind, compares the accuracy of introspection to the accuracy of sense perception – pretty good, presumably, about medium-sized, nearby matters (1985, 1988). Dan Dennett, often cited as a pessimist about introspective report, actually says that we can come close to infallibility when charitably interpreted (2002). The above references concern knowledge of the stream of conscious experience, but philosophers have also tended to be impressed with our self-knowledge of our attitudes, such as our beliefs and desires. Consider this: Although I can be wrong about its being sunny outside, I can’t in the same way be wrong, it seems, about the fact that I think it’s sunny outside. Some.. (shrink)

The gambler’s fallacy is the tendency to expect random processes to switch more often than they actually do—for example, to think that after a string of tails, a heads is more likely. It’s often taken to be evidence for irrationality. It isn’t. Rather, it’s to be expected from a group of Bayesians who begin with causal uncertainty, and then observe unbiased data from an (in fact) statistically independent process. Although they converge toward the truth, they do so in an asymmetric (...) way—ruling out “streaky” hypotheses more quickly than “switchy” ones. As a result, the majority (and the average) exhibit the gambler’s fallacy. If they have limited memory, this tendency persists even with arbitrarily-large amounts of data. Indeed, such Bayesians exhibit a variety of the empirical trends found in studies of the gambler’s fallacy: they expect switches after short streaks but continuations after long ones; these nonlinear expectations vary with their familiarity with the causal system; their predictions depend on the sequence they’ve just seen; they produce sequences that are too switchy; and they exhibit greater rates of gambler’s reasoning when forming binary predictions than when forming probability estimates. In short: what’s been thought to be evidence for irrationality may instead be rational responses to limited data and memory. (shrink)

Human decision making shows systematic simplifications and deviations from the tenets of rationality (‘heuristics’) that may lead to suboptimal decisional outcomes (‘cognitive biases’). There are currently three prevailing theoretical perspectives on the origin of heuristics and cognitive biases: a cognitive-psychological, an ecological and an evolutionary perspective. However, these perspectives are mainly descriptive and none of them provides an overall explanatory framework for the underlying mechanisms of cognitive biases. To enhance our understanding of cognitive heuristics and biases we propose a neural (...) network framework for cognitive biases, which explains why our brain systematically tends to default to heuristic (‘Type 1’) decision making. We argue that many cognitive biases arise from intrinsic brain mechanisms that are fundamental for the working of biological neural networks. In order to substantiate our viewpoint, we discern and explain four basic neural network principles: (1) Association, (2) Compatibility (3) Retainment, and (4) Focus. These principles are inherent to (all) neural networks which were originally optimized to perform concrete biological, perceptual, and motor functions. They form the basis for our inclinations to associate and combine (unrelated) information, to prioritize information that is compatible with our present state (such as knowledge, opinions and expectations), to retain given information that sometimes could better be ignored, and to focus on dominant information while ignoring relevant information that is not directly activated. The supposed mechanisms are complementary and not mutually exclusive. For different cognitive biases they may all contribute in varying degrees to distortion of information. The present viewpoint not only complements the earlier three viewpoints, but also provides a unifying and binding framework for many cognitive bias phenomena. (shrink)

The research theorizes how hubris impacts ethical decision making and develops empirical evidence that earnings manipulation is more likely at firms led by CEOs influenced by hubris. The theory posits that hubris impairs moral awareness by causing decision makers to ignore external factors that otherwise drive such awareness. Additionally, these individuals apply a flawed subjective assessment of the decision they face which further impairs moral awareness. The predicted result is that hubris leads managers to invoke an amoral decision process which (...) causes a higher incidence of unethical behavior among these individuals. An empirical study investigates the relationship between CEO hubris and the unethical practice of earnings manipulation. This study finds a significant correlation between CEO hubris and earnings manipulation at the firms they lead, an outcome broadly consistent with the theory developed. (shrink)

Topics in Cognitive Science, Volume 14, Issue 3, Page 602-620, July 2022.

The magnitude of public concerns about agricultural innovations has often been underestimated, as past examples, such as pesticides, nanotechnology, and cloning, demonstrate. Indeed, studies have proven that the agricultural sector presents an area of tension and often attracts skepticism concerning new technologies. Digital technologies have become increasingly popular in agriculture. Yet there are almost no investigations on the public acceptance of digitalization in agriculture so far. Our online survey provides initial insights to reduce this knowledge gap. The sample represents the (...) German population in terms of gender, age, education and size of place of residence. Results showed that if the potential of digital farming technologies regarding animal welfare and environmental protection was described, respondents reacted positively. Thus, the general attitudes of respondents toward the benefits of DFT were mostly positive. The approval to increasing adoption rates of particular DFT by providing subsidies was also high. Linear regression models showed that the dominant positive influences on respondents’ attitudes toward the benefits of DFT were a generally positive attitude toward farming and a strong trust in farmers in Germany. Confronting respondents with pictures showing DFT resulted in many spontaneous negative associations and general criticism of agricultural production. The latter holds true for DFT in animal husbandry in particular. However, as agriculture as a whole is criticized by many groups in Germany, it is unlikely that benefits from digitalization will significantly increase the public acceptance of agriculture as a whole. (shrink)

The Cognitive Reflection Test (CRT) is a measure of analytical reasoning that cues an intuitive but incorrect response that must be rejected for successful performance to be attained. The CRT yields two types of errors: Intuitive errors, which are attributed to Type 1 processes; and non-intuitive errors, which result from poor numeracy skills or deficient reasoning. Past research shows that participants who commit the highest numbers of errors on the CRT overestimate their performance the most, whereas those with the lowest (...) error-rates tend to slightly underestimate. This is an example of the Dunning-Kruger Effect (DKE). The present study examined how intuitive vs. non-intuitive errors contribute to overestimation in the CRT at different levels of performance. Female undergraduate students completed a seven-item CRT test and subsequently estimated their raw score. They also filled out the Faith in Intuition (FI) questionnaire, which is a dispositional measure of intuitive thinking. Data was separated into quartiles based on level of performance on the CRT. The results demonstrated the DKE. Additionally, intuitive and non-intuitive errors predicted miscalibration among low, but not high performers. However, intuitive errors were a stronger predictor of miscalibration. Finally, FI was positively correlated with CRT self-estimates and miscalibration, indicating that participants who perceived themselves to be more intuitive were worse at estimating their score. These results taken together suggest that participants who perform poorly in the CRT and also those who score higher in intuitive thinking disposition are more susceptible to the influences of heuristic-based cues, such as answer fluency, when judging their performance. (shrink)

The purpose of the study was to investigate how numeracy and acuity of the approximate number system (ANS) relate to the calibration and coherence of probability judgments. Based on the literature on number cognition, a first hypothesis was that those with lower numeracy would maintain a less linear use of the probability scale, contributing to overconfidence and nonlinear calibration curves. A second hypothesis was that also poorer acuity of the ANS would be associated with overconfidence and non-linearity. A third hypothesis, (...) in line with dual-systems theory (e.g., Kahneman and Frederick, 2002 ) was that people higher in numeracy should have better access to the normative probability rules, allowing them to decrease the rate of conjunction fallacies. Data from 213 participants sampled from the Swedish population showed that: (i) in line with the first hypothesis, overconfidence and the linearity of the calibration curves were related to numeracy, where people higher in numeracy were well calibrated with zero overconfidence. (ii) ANS was not associated with overconfidence and non-linearity, disconfirming the second hypothesis. (iii) The rate of conjunction fallacies was slightly, but to a statistically significant degree decreased by numeracy, but still high at all numeracy levels. An unexpected finding was that participants with better ANS acuity gave more realistic estimates of their performance relative to others. (shrink)

Timothy Murphy argues in his article “In Defense of Irreligious Bioethics” (2012) that the role of religion in normative bioethics should be limited and that a viable means for limiting its role (o...

Adaptive rationality theorists question the manner in which psychologists have typically assessed rational behavior and cognition. According to them, human rationality is adaptive, and the biases reported in the psychological literature are best seen as the result of using normative standards that are too narrow. As it turns out, their challenge is also quite controversial, and several aspects of it have been called into question. Yet, whilst it is often suggested that the lack of cogency comes about due to the (...) implausibility of the alternative normative framework, in this paper I articulate a different strategy to resist the revolutionary rhetoric of AR. As I argue here, even if we accept the normative framework of AR, the challenge from AR is less damaging than usually accepted. In particular, I challenge the claim that biases reported in the literature should be conceived of as violations of axiomatic rationality. I argue that the category of bias refers instead to a range of heterogeneous phenomena and that, since several important families of biases are not just violations of axiomatic rationality, these are not vulnerable to the AR challenge. In fact, I also show that the families I consider here look like plausible cases of irrational behavior from the perspective of AR, and that the outcome of my analysis does not sit well with AR theorists’ claim that people are generally successful at achieving prudential and epistemic goals. (shrink)

This study investigates whether local gambling norms are associated with audit pricing. Using a religion-based measure of local social gambling norms, we find strong evidence that public firms located in U.S. counties with more liberal gambling norms exhibit higher levels of audit fees. This result is consistent with our view that, as an important external risk factor, clients’ local gambling norms influence audit pricing decisions. Our findings are robust to a battery of sensitivity tests, including non-religion based measures of liberal (...) gambling norms and a natural experiment. (shrink)

Although experts are valuable assets to organizations, they suffer from the curse of knowledge and cognitive entrenchment, which prevents them from being able to adapt to changing situational demands. In this study, I propose that experts’ performance goal orientation resulting from pressures to perform contributes to their flexibility, but this mechanism can be moderated by learning goal orientation and humility. Data from a small sample of healthcare professionals suggested that performance goal orientation partially explained the mechanism of why experts may (...) be inflexible. Humility, both as self-report and other-report measures, was found to be the most consistent moderator of this indirect effect. Experts with low levels of humility suffered from the negative effects of performance goal orientation, leading them to be less flexible compared to their counterparts with higher levels of humility. Experts who reported high levels of humility, on the other hand, were perceived to be more flexible as their expertise increased. Meanwhile, learning goal orientation partially moderated the indirect effect of expertise on flexibility through performance goal orientation. These findings lead to new conversations on how to get experts unstuck and highlight the importance of developing humility as both a personal virtue and a strategic advantage for organizations. (shrink)

Optimistic beliefs have been criticized by philosophers as being irrational or epistemically deficient. This paper argues for the possibility of a rational optimism. We propose a novel four-fold taxonomy of optimistic beliefs and argue that people may hold optimistic beliefs rationally for at least two of the four types (resourced optimism and agentive optimism). These forms of rational optimism are grounded in facts about one’s resources and agency and may be epistemically justified under certain conditions. We argue that the fourth (...) type of optimism in our taxonomy (perspectival optimism) is not subject to epistemic scrutiny in the same way. It is better evaluated on practical and moral grounds. This paper advances the discussion of optimism within both the philosophical and psychological literatures by providing a compelling and philosophically rich taxonomy of optimism that clarifies the sometimes-competing forms of optimism identified by psychologists. This advances the field by putting forward cases of epistemically justified optimism, in contrast with unrealistic optimism, that is sometimes justified for its instrumental or adaptive characteristics, and also by highlighting a form of optimism, perspectival optimism, that is not being considered in the mainstream optimism literature in psychology. The paper concludes by suggesting several avenues for future empirical and philosophical research. (shrink)

Although it makes some progress, McKay & Dennett's (M&D's) proposal is limited because (1) the argument for adaptive misbelief is not new, (2) arguments overextend the evidence provided, and (3) the alleged sufficient conditions are not as prohibitive as suggested. We offer alternative perspectives and evidence, including individual differences research, indicating that adaptive misbeliefs are likely much more widespread than implied.

Naive physics beliefs can be systematically mistaken. They provide a useful test-bed because they are common, and also because their existence must rely on some adaptive advantage, within a given context. In the second part of the commentary we also ask questions about when a whole family of misbeliefs should be considered together as a single phenomenon.

The rapid development of online social media has significantly promoted product diffusion in online social networks. However, prior studies focusing on irrational behavior, such as overconfidence, in PDOSN are scarce. To investigate the effect of overconfidence on PDOSN, this study combined overconfidence and an evolutionary game to conduct a multiagent simulation on PDOSN. This combined method provided an effective reference to examine product diffusion in the context of irrational behavior. After careful consideration, this study identified three overconfidence scenarios, benefit, cost, (...) and benefit and cost overconfidence, developed a multiagent simulation model for PDOSN using various overconfidence scenarios, and conducted a comparison with real-world cases to validate the model’s feasibility. The findings indicated that adoption benefits and betrayal penalties had a positive effect on the results in all models, while adoption costs had the opposite effect. When benefit and cost overconfidence occurred simultaneously, benefit overconfidence offset the negative effect of cost overconfidence. Moderate connectivity, a large number of core nodes, and high reconnection probability fully promoted product diffusion. Benefit overconfidence and cost overconfidence had a significant impact on the results in different networks. As such, this study combined psychological theory with simulation methods, providing insights for future research on product diffusion. (shrink)

The theory of actively open-minded thinking (AOT) implies standards for good thinking. Two broad aspects of these standards characterise individual differences in their acceptance: myside bias, in which thinking favours possible conclusions that are already strong; and uncertainty aversion, a belief that good thinking results in high confidence. Acceptance of AOT standards is often measured with short questionnaire scales. The present paper reports one study focusing on each of these two biases in the evaluation of the trustworthiness of sources, on (...) the basis of short statements differing in signs of myside bias or of unjustified overconfidence. A 10-item scale measuring largely myside bias predicts sensitivity to both sources of difference in the statements. A third study examines the generality of the two standards across topics. The study used four questions about each topic and an 11-item scale with more items about uncertainty aversion. Individual differences are preserved across topic, although some results imply that individual differences are more pronounced when a standard is seen as more relevant to the content. The two standards are best characterised as two unidimensional factors that are correlated with each other. Thus, individual differences in AOT standards are not unidimensional. (shrink)

The growing prevalence of misleading information (i.e., bullshit) in society carries with it an increased need to understand the processes underlying many people’s susceptibility to falling for it. Here we report two studies (N = 412) examining the associations between one’s ability to detect pseudo-profound bullshit, confidence in one’s bullshit detection abilities, and the metacognitive experience of evaluating potentially misleading information. We find that people with the lowest (highest) bullshit detection performance overestimate (underestimate) their detection abilities and overplace (underplace) those (...) abilities when compared to others. Additionally, people reported using both intuitive and reflective thinking processes when evaluating misleading information. Taken together, these results show that both highly bullshit-receptive and highly bullshit-resistant people are largely unaware of the extent to which they can detect bullshit and that traditional miserly processing explanations of receptivity to misleading information may be insufficient to fully account for these effects. (shrink)

We propose another positive illusion – overconfidence in the generalisability of one's theory – that fits with McKay & Dennett's (M&D's) criteria for adaptive misbeliefs. This illusion is pervasive in adult reasoning but we focus on its prevalence in children's developing theories. It is a strongly held conviction arising from normal functioning of the doxastic system that confers adaptive advantage on the individual.

Civilian Immunity (‘Immunity’) is the legal and moral protection that civilians enjoy against the effects of hostilities under the laws of armed conflict and according to the ethics of killing in war. Immunity specifies different permissibility conditions fordirectly targeting civilianson the one hand, and forharming civilians incidentallyon the other hand. Immunity is standardly defended by appeal to the Doctrine of Double Effect (DDE). We show that Immunity's prohibitive stance towards targeting civilians directly, and its more permissive stance towards harming them (...) incidentally, can be defended without appealing to the DDE if agents suffer fromoverconfidence. Overconfidence is a cognitive bias that affects agents who are required to make decisions in the presence of significant uncertainty. (shrink)

We question a central premise upon which the target article is based. Namely, we point out that the evidence for is in fact quite mixed. As such, the question of whether positive illusions are adaptive from an evolutionary standpoint may be premature in light of the fact that their very existence may be an illusion.

People’s feelings of confidence in the correctness of their knowledge while answering a knowledge test can be inferred in two ways: either by averaging the values of specific confidence values assigned to each item in a test or by asking after the termination of the test for an evaluation of the number of correct answers regarding the entire test. Surprisingly, when local and global confidence values of the same test are compared, global confidence tends to be significantly lower than local (...) confidence. In the present study a heuristic process explanation for the effect is presented and its validity is empirically tested. The global confidence heuristic process is based on the ability of participants to recall, after a test was completed, the frequencies of specific confidence values which were assigned to the test’s items. Participants build their global confidence by adding about half the number of their guessed answers, to the number of questions with sure answers. The proposed GCH process was supported quantitatively. A content analysis on retrospective explanations provided by participants indicated that this process was feasible. Further research is needed in order to fully explore the power of the explanation suggested here for the confidence-frequency effect. (shrink)

Huttenlocher et al. (J Exp Psychol Gen 129:220–241, 2000) introduce the category adjustment model (CAM). Given that participants imperfectly remember stimuli (which we refer to as “targets”), CAM holds that participants maximize accuracy by using information about the distribution of the targets to improve their judgments. CAM predicts that judgments will be a weighted average of the imperfect memory of the target and the mean of the distribution of targets. Huttenlocher et al. (2000) report on three experiments and conclude that (...) CAM is “verified”. We attempt to replicate the conditions in Experiment 3 from Huttenlocher et al. (2000). We analyze judgment-level data rather than averaged data. We find evidence of a bias toward a set of recent targets rather than a bias toward the running mean. We do not find evidence of learning. The judgments in our dataset are not consistent with CAM. We discuss other defects in HHV—including dividing by zero. It seems that evidence for CAM is a statistical artifact that appears when researchers analyze data averaged across trials and do not consider a recency bias. (shrink)

This paper demonstrated the influences of initiation, development, turn-down, and reinitiation of the dynamic capability of an entrepreneurial firm in the solar energy industry. The focus is on the impact of entrepreneurial hubris, which may affect the decision of ambidexterity that can vitalize dynamic capability. The findings indicate that, when the major decision maker has the trait of hubris, the decision-making process may be overly arbitrary, and a decision of being exploratory or exploitative alone is likely to be made. On (...) the contrary, when the founder entrepreneur is aware of the hubris and shares decisive power, the decision of being ambidextrous as a dynamic capability is more freely achieved. This paper contributes by discovery of the cognitive-based microfoundation of entrepreneurial ventures and linkage of such microfoundation to organizational ambidexterity. (shrink)

1. Overconfidence is usually understood as being more confident than reality justifies (Harvey, 1997; Moore & Healy, 2008; Pompian, 2006), which leads individuals to overestimate their performance...

We design a double-or-quits game to compare the speed of learning one’s specific ability with the speed of rising confidence as the task gets increasingly difficult. We find that people on average learn to be overconfident faster than they learn their true ability and we present an intuitive-Bayesian model of confidence which integrates confidence biases and learning. Uncertainty about one’s true ability to perform a task in isolation can be responsible for large and stable confidence biases, namely limited discrimination, the (...) hard–easy effect, the Dunning–Kruger effect, conservative learning from experience and the overprecision phenomenon if subjects act as Bayesian learners who rely only on sequentially perceived performance cues and contrarian illusory signals induced by doubt. Moreover, these biases are likely to persist since the Bayesian aggregation of past information consolidates the accumulation of errors and the perception of contrarian illusory signals generates conservatism and under-reaction to events. Taken together, these two features may explain why intuitive Bayesians make systematically wrong predictions of their own performance. (shrink)

In this paper, we study overconfidence and goal-setting in academic performance, with and without monetary incentives. Students enrolled in a microeconomics course were offered the possibility of setting their own target grade before taking part in the final exam. They were also asked to guess their grade immediately after they had taken the exam (“post-diction”). In general, students overestimated their performance, both at the goal-setting and at the post-diction stages. Controlling for several sources of this bias (cognitive abilities, academic record (...) and self-reported academic confidence), we find that the use of monetary rewards mitigates the overestimation of potential achievements and eliminates overestimation of actual achievements through the improvement of actual performance. Our results suggest that monetary incentives do not cause subjects to put more effort into correct guesses but make them put more effort into academic performance. Using students’ academic records to measure overall skill, we find a strong Dunning–Kruger bias which is intensified in the presence of monetary rewards. (shrink)

Several studies highlight the importance of the order of different instructional methods when designing learning environments. Correct but also erroneous worked examples are frequently used methods to foster students’ learning performance, especially in problem-solving. However, so far no study examined how the order of these example types affects learning. While the expertise reversal effect would suggest presenting correct examples first, the productive failure approach hypothesizes the reversed order to be learning-facilitating. In addition, congruency of subsequent exemplified problems was tested as (...) a moderator of the effect of order on learning. For example, with arithmetic tasks, congruent problems target exactly the same calculation while incongruent problems refer to different calculations. Following cascade theory, a model of cognitive skill acquisition, presenting correct examples first should be more effective when the subsequent exemplified problems are different. To test the hypotheses, 83 university students were assigned to one of the four conditions in a 2 × 2 between-subject design. Learners navigated through a slideshow on the topic of Vedic mathematics consisting of explicit instruction, worked examples differing in terms of the experimental condition, and transfer problems. Although no main or interaction effects were found regarding students’ learning performance, mediational analysis offered support for the expertise reversal effect, as it indicated that there is a significant indirect effect of order via mental load on learning. Presenting correct examples first and erroneous examples second resulted in a lower mental load, which in turn was associated with better learning performance. In contrast, presenting erroneous examples first and correct examples second resulted in a more accurate self-assessment of learning performance. These findings offer first insights into the question of how the presentation order of different example types impacts learning and provide practical recommendations for the design of educational media. Results are discussed in light of the ongoing debate regarding the question if less guided instructional methods should precede or succeed more guided methods. (shrink)

Our thoughts, feelings, and behaviors are shaped in critical ways by our beliefs about how we compare to other people. Prior research has predominately focused on the consequences of believing oneself to be better than average (BTA). Research on the consequences of worse-than-average (WTA) beliefs has been far more limited, focusing mostly on the downsides of WTA beliefs. In this paper, we argue for the systematic investigation of the possible long-term benefits of WTA beliefs in domains including motivation, task performance, (...) and subjective well-being. We develop a conceptual framework for examining these possible benefits, we explore the usefulness of this framework to generate novel insights in an important psychological domain (skill learning), and we conclude with broader recommendations for research in other domains such as friendship formation, moral, and political decision making. (shrink)

Prior experimental studies have shown that individuals' actual ordering decisions significantly deviate from the theoretical optimum in newsvendor problems and show the robust pull-to-centre effect. Several human behaviours have been confirmed to be the causes of the PTC. However, most newsvendor experiments have been conducted in multicultural countries. As there exist mutual influences between culture and behaviour, in this study, we revisit the ordering biases in a monocultural country to examine the robustness of the PTC and whether the causes can (...) still explain this phenomenon. Our results show that the PTC still prevails and heuristics still work. However, overconfidence cannot perfectly interpret the PTC in China for probable inconsistent confidence levels in individual judgments and decisions. Moreover, the “centre" may no longer be the mean demand but the average value of the realised demand. We explain these changes from the perspective of cultural differences. To be more specific, collectivism, holistic style, and Doctrine of the Mean play vital roles in Chinese newsvendors' decisions. (shrink)

This thesis is an experimental study to investigate the operationalisability of the theory of social norms provided by Cristina Bicchieri. In Chapter 1 I critically summarise a main theme from recent literature and distinguish the accounts of norms based on social preferences from accounts based on social structure. I also summarise different theorists’ accounts of social norms as a social construct, in addition to surveying some issues scholars have raised empirically. Chapter 2 reviews the conceptual analysis of social norms by (...) Bicchieri as a social structure based account. Bicchieri’s conceptual analysis introduces three kinds of condition for norm identification. I review these in detail, and suggest hypothesis testing corresponding to each kind of condition. Chapter 2 briefly analyses a critical problem for Bicchieri’s theory. Chapter 3 provides philosophical background that supports the intentional concepts applied in Bicchieri’s analysis of social norms. I suggest that the Dennettian account of Intentional Stance is the best philosophical framework for Bicchieri’s account of social norms. I also argue that Revealed Preference Theory from economics is an application of the Intentional Stance. I conjecture that adopting the Intentional Stance and applying Revealed Preference Theory to empirical data can allow for improved operationalisation of Bicchieri’s conceptual analysis. In Chapter 4 I provide critical review of some key experimental work by Bicchieri and co-authors applying her conceptual analysis of social norms. I then provide a critical review of a widely used toolbox from the current economic literature for norm elicitation. Then I introduce a more rigorous experimental protocol for investigating social norms understood following Bicchieri’s analysis. The toolbox suggested in my thesis addresses limitations identified in Bicchieri’s empirical work. Chapter 5 presents design of the experiment administered as the core element of the thesis. Chapter 6 shows and analyses the results from the experiments described in Chapter 5. It also introduces the statistical models used in my thesis to assess the extent to which Bicchieri’s analyses successfully guides experimental identification of social norms. Chapter 7 offers concluding theoretical reflections, and discusses possible extensions of the research presented in this thesis. (shrink)

This paper studies performance predictions in the 7-item Cognitive Reflection Test (CRT) and whether they differ by gender. After participants completed the CRT, they predicted their own (i), the other participants' (ii), men's (iii), and women's (iv) number of correct answers. In keeping with existing literature, men scored higher on the CRT than women and both men and women were too optimistic about their own performance. When we compare gender-specific predictions, we observe that men think they perform significantly better than (...) other men and do so significantly more than women. The equality between women's predictions about their own performance and their female peers cannot be rejected. Our findings contribute to the growing literature on the underpinnings of behavior in economics and in psychology by uncovering gender differences in confidence about one's ability relative to same and opposite sex peers. (shrink)

The return on composite investment instruments takes the form of weighted-average, derived from two economic indicators or more. Three experiments illustrate that prospective investors tend to valuate composites “by-tranche”, consistently violating the premise of reduction. Valuation-by-tranche shows for uncertain and risky composites and reflects in allocation problems and binary choice. The willingness to invest still strongly increases when one tranche hedges against the other, suggesting that reduced-form considerations may interfere with the inclination to value by part. A hybrid model where (...) investors weight the values of tranches, but also respond to the reduced-form, approximates the data most accurately. (shrink)