Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2, 2023 erstellt
Beschreibung:
Using a novel experimental design that directly elicits individuals’ mental models, we show that making choices can lead individuals to adopt models that exaggerate the importance of their choice variable for payoff-relevant outcomes. In other words, one key factor in the economic environment — the endowed ability to choose the value of a variable — can cause agents to form models that feature an outsized effect of that variable, leading to beliefs with an illusion of control. We discuss the potential psychological mechanisms and economic con- sequences of choice-induced misspecified models