Pragmatic beliefs and overconfidence
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- Discussion papers (FOR) 
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.
UtgiverNorwegian School of Economics and Business Administration. Department of Finance and Management Science