Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110766
Authors: 
Filippin, Antonio
Crosetto, Paolo
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9030
Abstract: 
Evidence of Illusion of Control – the fact that people believe to have control over pure chance events – is a recurrent finding in experimental psychology. Results in economics find instead little to no support. In this paper we test whether this dissonant result across disciplines is due to the fact that economists have implemented only one form of illusory control. We identify and separately tests in an incentive-compatible design two types of control: a) over the resolution of uncertainty, as usually done in the economics literature, and b) over the choice of the lottery, as sometimes done in the psychology literature but without monetary payoffs. Results show no evidence of illusion of control, neither on choices nor on beliefs about the likelihood of winning, thus supporting the hypotheses that incentives crowd out illusion of control.
Subjects: 
Illusion of Control
experiment
risk elicitation
hypothetical bias
JEL: 
B49
C91
D81
Document Type: 
Working Paper

Files in This Item:
File
Size
339.03 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.