Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2006-01-17 Number: 06-010/1 Author-Name: Silvia Dominguez Martinez Author-Email: S.DominguezMartinez@uva.nl Author-Workplace-Name: Faculty of Economics & Business, University of Amsterdam Author-Name: Otto H. Swank Author-Email: email@example.com Author-Workplace-Name: Erasmus School of Economics, Erasmus Universiteit Rotterdam Title: A Simple Model of Self-Assessments Abstract: We develop a simple model that describes individuals’ self-assessments oftheir abilities. We assume that individuals learn about their abilities from appraisalsof others and experience. Our model predicts that if communicationis imperfect, then (i) appraisals of others tend to be too positive, and (ii) overconfidenceleading to too much activism is more likely than underconfidenceleading to too much passivity. The predictions of our model are consistentwith findings in the social psychological literature.
This discussion paper has led to a publication in the 'Economic Journal' 119(539), 1225-41. Classification-JEL: D81; D82; D83 Keywords: self-assessments; learning about ability; coaching; overconfidence; underconfidence File-Url: http://papers.tinbergen.nl/06010.pdf File-Format: application/pdf File-Size: 268033 bytes Handle: RePEc:tin:wpaper:20060010