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S. Lichtenstein, B. Fischhoff and L. D. Phillips, “Calibration of Probabilities: The State of the Art to 1980,” In: D. Kahneman, P. Solvic and A. Tversky, Eds., Judgment under Uncertainty: Heuristics and Biases, Cambridge University Press, Cambridge, New York, 1982. doi:10.1017/CBO9780511809477.023

has been cited by the following article:

• TITLE: An Experimental Analysis of Over-Confidence

  AUTHORS: Saoussen Jemaiel, Chokri Mamoghli, Mohamed Walid Seddiki

  KEYWORDS: Over-Confidence; Uncertainty; Monetary Incentives; Experiments

  JOURNAL NAME: American Journal of Industrial and Business Management, Vol.3 No.4, July 24, 2013

  ABSTRACT: The purpose of this paper is to experimentally demonstrate the existence of the bias of over-confidence as a human psychological bias. This bias was measured by three methods: the estimation interval, the frequency estimation method and the method of question with two answer choices. The estimation interval method finds a very wide bias compared to the other two methods, but overconfidence persists in the other two methods at lower levels. In the first experiment, monetary incentives have exacerbated the over-confidence because of the given compensation. This system has demonstrated that there is a strong link between over-confidence and risk taking. The second experiment that used the method of question with two answer choices was given a different pay system and it was expected that overconfidence will be reduced by monetary incentives but the results show that the bias is not significantly reduced by these new monetary incentives. Similarly, the iteration that was made during the first experiment did not significantly reduce the bias.