We conduct a proper test of the claim that people are overconfident, in the sense that they believe that they are better than others. The results of the experiment we present do not allow us to reject the hypotheses that the data has been generated by perfectly rational, unbiased, and...

Numerous experiments demonstrate attitude polarization. For instance, Lord, Ross & Lepper presented subjects with the same mixed evidence on the deterrent effect of the death penalty. Both believers and skeptics of its deterrent effect became more convinced of their views; that is, the...

Many studies have shown that people display an apparent overconfidence. In particular, it is common for a majority of people to describe themselves as better than average. The literature takes for granted that this better-than-average effect is problematic. We argue, however, that, even...

In this paper we conduct two proper tests of overconfidence. We reject the hypothesis "the data cannot be generated by a rational model" in both experiments.

Many studies have shown that people display an apparent overconfidence. In particular, it is common for a majority of people to describe themselves as better-than-average. The literature takes for granted that this better-than-average effect is problematic. We argue, however, that, even...

Many studies have shown that people display an apparent overconfidence. In particular, it is common for a majority of people to describe themselves as better than average. The literature takes for granted that this better-than-average effect is problematic. We argue, however, that, even...

The study explores the application of demand theory in studying consumer spending behaviour and policy analysis, with a focus on food demand and consumption patterns. It reviews various demand function systems and introduces the differential approach as a superior method for modelling demand....

This study assessed households’ willingness to pay and payments for water services supplied by the Akwa Ibom Water Company Limited using the Heckman two-step analysis. Using the survey research design, these households comprised households that have access to 5.06% of water supply services...

This study assessed households’ willingness to pay and payments for water services supplied by the Akwa Ibom Water Company Limited using the Heckman two-step analysis. Using the survey research design, these households comprised households that have access to 5.06% of water supply services...

This paper studies whether anomalies in consumption can be explained by a behavioral model in which agents make predictable errors in forecasting income. We use a micro-data set containing subjective expectations about future income. The paper shows that, the null hypothesis of rational...