Template-Type: ReDIF-Paper 1.0
Title: Experimental Evidence on Misguided Learning
Author-Name: Lorenz Götte
Author-Email: 
Author-Name: Marta Kozakiewicz
Author-Email:

Classification-JEL: C91, D83
Keywords: overcondence, belief formation, learning, experiment

Abstract: We test experimentally the theory of misguided learning formulated by Heidhues
et al. (2018). The model predicts the behavior of an agent who has a biased
perception of his ability and is learning about an unknown, decision-relevant parameter.
We use a novel experimental design to demonstrate that the learning process
of an overcondent agent diers signicantly from that of an unbiased agent. In a
dynamic setting, the overcondent agent repeatedly takes suboptimal actions, misinterprets
the output and forms erroneous beliefs about the unknown parameter.
We provide the rst empirical evidence that giving a biased agent the opportunity
to experiment and acquire new information is not only ineective, but in some cases
counterproductive.

Note: 
Length: 38
Creation-Date: 2020-05
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp170
Handle: RePEc:bon:boncrc:CRCTR224_2020_170