Abstract
It is commonly held that people believe themselves to be better than others, especially for outcomes under their control. However, such overconfidence is not universal. This paper presents evidence showing that people believe that they are below average on skill-based tasks that are difficult. A simple Bayesian explanation can account for these effects and for their robustness: On skill-based tasks, people generally have better information about themselves than about others, so their beliefs about others’ performances tend to be more regressive (thus less extreme) than their beliefs about their own performances. This explanation is tested in two experiments that examine these effects’ robustness to experience, feedback, and market forces. The discussion explores the implications for strategic planning in general and entrepreneurial entry in particular.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Organizational Behavior and Human Decision Processes
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
