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Self-Centered Beliefs : An Empirical Approach

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  • Proto, Eugenio

    (University of Warwick)

  • Sgroi, Daniel

    (University of Warwick and CAGE)

Abstract

We perform an experiment designed to assess the accuracy of beliefs about distributions. The beliefs relate to behavior (mobile phone purchasing decisions, hypothetical restaurant choices), attitudes (happiness, politics) and observable characteristics (height, weight) and are typically formed through real world experiences. We nd a powerful and ubiquitous bias in perceptions that is \self-centered" in the sense that an individual's beliefs about the population distribution changes with their own position in the distribution. In particular, those at extremes tend to perceive themselves as closer to the middle of the distribution than is the case. We discuss possible explanations for this bias. Key words: subjective beliefs ; attitudes ; observable characteristics ; self-centered bias JEL classification: D03 ; C83 ; D84

Suggested Citation

  • Proto, Eugenio & Sgroi, Daniel, 2012. "Self-Centered Beliefs : An Empirical Approach," The Warwick Economics Research Paper Series (TWERPS) 978, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:978
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    References listed on IDEAS

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    1. We all have self-centered beliefs about others
      by Economic Logician in Economic Logic on 2012-03-20 19:29:00

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    More about this item

    Keywords

    subjective beliefs ; attitudes ; observable characteristics ; self-centered bias jel classification: d03 ; c83 ; d84;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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