Memory Recall Bias of Overconfident and Underconfident Individuals after Feedback

King-King Li (1)

1 Shenzhen Audencia Business School, Shenzhen University

We experimentally investigate the memory recall bias of overconfident (underconfident) individuals after receiving feedback on their overconfidence (underconfidence). Our study differs from the literature by identifying the recall pattern conditional on subjects’ overconfidence/underconfidence. We obtain the following results. First, overconfident (underconfident) subjects exhibit overconfident (underconfident) recall despite receiving feedback on their overconfidence (underconfidence). Second, awareness of one’s overconfidence or underconfidence does not eliminate memory recall bias. Third, the primacy effect is stronger than the recency effect. Overall, our results suggest that memory recall bias is mainly due to motivated beliefs of sophisticated decision makers rather than naïve decision-making.

Mots clés: memory recall bias; overconfidence; underconfidence; experiment

Domaines: Economies et finances

King-King Li. Memory Recall Bias of Overconfident and Underconfident Individuals after Feedback. Games, 2022, 13, ⟨10.3390/g13030041⟩. ⟨hal-03841235⟩