Memory Recall Bias of Overconfident and Underconfident Individuals after Feedback

We experimentally investigate the memory recall bias of overconfident (underconfident) individuals after receiving feedback on their overconfidence (underconfidence). Our study differs from the literature by identifying the recall pattern conditional on subjects’ overconfidence/underconfidence. We o...

Full description

Saved in:
Bibliographic Details
Published in:Games 2022-06, Vol.13 (3), p.41
Main Author: Li, King-King
Format: Article
Language:English
Subjects:
Bias
Decision making
Economics and Finance
experiment
Experiments
Feedback
Humanities and Social Sciences
Laboratories
Market entry
memory recall bias
overconfidence
Recall
Self image
underconfidence
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We experimentally investigate the memory recall bias of overconfident (underconfident) individuals after receiving feedback on their overconfidence (underconfidence). Our study differs from the literature by identifying the recall pattern conditional on subjects’ overconfidence/underconfidence. We obtain the following results. First, overconfident (underconfident) subjects exhibit overconfident (underconfident) recall despite receiving feedback on their overconfidence (underconfidence). Second, awareness of one’s overconfidence or underconfidence does not eliminate memory recall bias. Third, the primacy effect is stronger than the recency effect. Overall, our results suggest that memory recall bias is mainly due to motivated beliefs of sophisticated decision makers rather than naïve decision-making.
ISSN:2073-4336
2073-4336
DOI:10.3390/g13030041