2019/05. Strategically delusional
Alice Solda, Queensland University of Technology & University of Lyon; Changxia Ke, Queensland University of Technology; Lionel Page, Queensland University of Technology & University of Technology Sydney and William von Hippel, University of Queensland
Date of publication: March 2019
Working paper number: 05
We aim to test the hypothesis that overconfidence arises as a strategy to influence others in social interactions. We design an experiment in which participants are incentivised either to form accurate beliefs about their performance at a test, or to convince a group of other participants that they performed well. We also vary participants’ ability to gather information about their performance. Our results provide, the different empirical links of von Hippel and Trivers’ (2011) theory of strategic overconfidence.