Does Confidence Predict Out-of-Domain Effort?

Elena Prokudina, Luc Renneboog, Philippe Tobler

Research output: Working paperDiscussion paperOther research output

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Abstract

Predicting worker’s effort is important in many different areas, but is often
difficult. Using a laboratory experiment, we test the hypothesis that confidence,
i.e. the person-specific beliefs about her abilities, can be used as a generic proxy to predict future effort provision. We measure confidence in the domain of financial knowledge in three different ways (self-assessed knowledge, probability-based confidence, and incentive-compatible confidence) and find a positive relation with actual effort provision in an unrelated domain. Additional analysis shows that the findings are independent of a person’s traits such as gender, age, and nationality.
Original languageEnglish
Place of PublicationTilburg
PublisherCentER, Center for Economic Research
Number of pages29
Volume2015-055
Publication statusPublished - 23 Nov 2015

Publication series

NameCentER Discussion Paper
Volume2015-055

Fingerprint

Confidence
Incentive compatible
Nationality
Financial knowledge
Workers
Laboratory experiments

Keywords

  • Real-effort task
  • financial literacy
  • overconfidence

Cite this

Prokudina, E., Renneboog, L., & Tobler, P. (2015). Does Confidence Predict Out-of-Domain Effort? (CentER Discussion Paper; Vol. 2015-055). Tilburg: CentER, Center for Economic Research.
Prokudina, Elena ; Renneboog, Luc ; Tobler, Philippe. / Does Confidence Predict Out-of-Domain Effort?. Tilburg : CentER, Center for Economic Research, 2015. (CentER Discussion Paper).
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Prokudina, E, Renneboog, L & Tobler, P 2015 'Does Confidence Predict Out-of-Domain Effort?' CentER Discussion Paper, vol. 2015-055, CentER, Center for Economic Research, Tilburg.

Does Confidence Predict Out-of-Domain Effort? / Prokudina, Elena; Renneboog, Luc; Tobler, Philippe.

Tilburg : CentER, Center for Economic Research, 2015. (CentER Discussion Paper; Vol. 2015-055).

Research output: Working paperDiscussion paperOther research output

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N2 - Predicting worker’s effort is important in many different areas, but is oftendifficult. Using a laboratory experiment, we test the hypothesis that confidence,i.e. the person-specific beliefs about her abilities, can be used as a generic proxy to predict future effort provision. We measure confidence in the domain of financial knowledge in three different ways (self-assessed knowledge, probability-based confidence, and incentive-compatible confidence) and find a positive relation with actual effort provision in an unrelated domain. Additional analysis shows that the findings are independent of a person’s traits such as gender, age, and nationality.

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Prokudina E, Renneboog L, Tobler P. Does Confidence Predict Out-of-Domain Effort? Tilburg: CentER, Center for Economic Research. 2015 Nov 23. (CentER Discussion Paper).