Overconfidence, Incentives and Digit Ratio.

ABSTRACT: This paper contributes to a better understanding of the biological underpinnings of overconfidence by analyzing performance predictions in the Cognitive Reflection Test with and without monetary incentives. In line with the existing literature we find that the participants are too optimistic about their performance on average; incentives lead to higher performance; and males score higher than females on this particular task. The novelty of this paper is an analysis of the relation between participants' performance prediction accuracy and their second to fourth digit ratio. It has been reported that the digit ratio is a negatively correlated bio-marker of prenatal testosterone exposure. In the un-incentivized treatment, we find that males with low digit ratios, on average, are significantly

SUBMITTER: Neyse L 

PROVIDER: S-EPMC4819182 | biostudies-literature | 2016 Apr

REPOSITORIES: biostudies-literature