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Pragmatic beliefs and overconfidence

Hvide, Hans K.
Working paper
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URI
http://hdl.handle.net/11250/164079
Date
2000-06
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  • Discussion papers (FOR) [588]
Abstract
Several studies indicate that humans are overconfident about their own (relative) abilities. We propose a notion of pragmatic beliefs, and show through an example that this concept can shed light on why overconfidence emerges. Through the example, we also shed light on the idea that that ’bounded rationality’ may arise endogenously in a game - without assuming complexity costs.
Publisher
Norwegian School of Economics and Business Administration. Department of Finance and Management Science
Series
Discussion paper
2000:11

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