Abstract
We conducted an experiment to compare how overconfidence is influenced by performance-based and fixed payment schemes, Participants in the experiment were students prior to taking a final exam in Introduction to Microeconomics, We find that most participants were overconfident regarding their success on the exam, overestimating the number of questions they would answer correctly. When a fixed pay scheme was used, men were more overconfident than women. Performance-based pay increased the overconfidence of women, and decreased the overconfidence of men. As a result, no gender difference in overconfidence was found when pay is based on performance.
| Original language | English |
|---|---|
| Pages (from-to) | 2108-2114 |
| Number of pages | 7 |
| Journal | Economics Bulletin |
| Volume | 34 |
| Issue number | 4 |
| State | Published - 2014 |
| Externally published | Yes |