Memory Recall Bias of Overconfident and Underconfident Individuals after Feedback
Résumé
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.
Domaines
Economies et financesOrigine | Accord explicite pour ce dépôt |
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