A Simple Model of Self-Assessments

Tinbergen Institute Discussion Paper No. 2006-010/1

25 Pages Posted: 23 Jan 2006

See all articles by Silvia Dominguez-Martinez

Silvia Dominguez-Martinez

University of Amsterdam - Amsterdam School of Economics (ASE)

Otto H. Swank

Erasmus University Rotterdam - Department of Economics; Tinbergen Institute Rotterdam (TIR)

Date Written: January 17, 2006

Abstract

We develop a simple model that describes individuals' self-assessments of their abilities. We assume that individuals learn about their abilities from appraisals of others and experience. Our model predicts that if communication is imperfect, then (i) appraisals of others tend to be too positive, and (ii) overconfidence leading to too much activism is more likely than underconfidence leading to too much passivity. The predictions of our model are consistent with findings in the social psychological literature.

Keywords: self-assessments, learning about ability, coaching, overconfidence, underconfidence

JEL Classification: D81, D82, D83

Suggested Citation

Dominguez-Martinez, Silvia and Swank, Otto H., A Simple Model of Self-Assessments (January 17, 2006). Tinbergen Institute Discussion Paper No. 2006-010/1, Available at SSRN: https://ssrn.com/abstract=876594 or http://dx.doi.org/10.2139/ssrn.876594

Silvia Dominguez-Martinez (Contact Author)

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

Roetersstraat 11
Amsterdam, North Holland 1018 WB
Netherlands

Otto H. Swank

Erasmus University Rotterdam - Department of Economics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Tinbergen Institute Rotterdam (TIR)

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 4081448 (Phone)
+31 10 2120551 (Fax)

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