TY  - BOOK
AU  - Barron, Kai
AU  -  Huck, Steffen
AU  -  Jehiel, Philippe
TI  - Everyday Econometricians: Selection Neglect and Overoptimism When Learning from Others
SN  - 1945-7669
PB  - American Economic Journal: Microeconomics
KW  -   Micro-Based Behavioral Economics
KW  -  Behavioral Finance
KW  -  Consumer Economics
KW  - Econometricians
N2  - This study explores selection neglect in an experimental investment game where individuals can learn from others' outcomes. Experiment 1 examines aggregate-level equilibrium behavior. We find strong evidence of selection neglect and corroborate several comparative static predictions of Jehiel's (2018) model, showing that the severity of the bias is aggravated by the sophistication of other individuals and moderated when information is more correlated across individuals. Experiment 2 focuses on individual decision-making, isolating the influence of beliefs from possible confounding factors. This allows us to classify individuals according to their degree of naivety and explore the limits of, and potential remedies for, selection neglect
UR  - https://www.aeaweb.org/articles?id=10.1257/mic.20200030
ER  -