Understanding Overconfidence

Last registered on March 23, 2026

Pre-Trial

Trial Information

General Information

Title
Understanding Overconfidence
RCT ID
AEARCTR-0018159
Initial registration date
March 20, 2026

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
March 23, 2026, 8:00 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Primary Investigator

Affiliation
National University of Singapore

Other Primary Investigator(s)

PI Affiliation
University of California, San Diego
PI Affiliation
University of California, San Diego

Additional Trial Information

Status
In development
Start date
2026-03-03
End date
2026-12-31
Secondary IDs
Prior work
This trial is based on or builds upon one or more prior RCTs.
Abstract
We aim to understand what drives individual overplacement when participants are asked questions about their ability or intelligence. Our main hypothesis is that overplacement is driven by a desire to not perceive oneself in the very bottom of the distribution (lowest quartile), rather than a desire to place oneself at the very top of the distribution (highest quartile). To test this hypothesis we will compare participants’ beliefs when asked to place themselves in two cases: below or above median (Median condition), and in one of four quartiles of the distribution (Q1-Q4, Quartiles condition). We also hypothesize that there will be a difference by gender, according to which men will display a stronger desire to avoid the bottom quartile than women. The study will consider two domains, an objective, verifiable task (IQ test) and a subjective, unverifiable task (IQ prediction without any test).
External Link(s)

Registration Citation

Citation
Dutta, Amrita, Uri Gneezy and Marta Serra-Garcia. 2026. "Understanding Overconfidence." AEA RCT Registry. March 23. https://doi.org/10.1257/rct.18159-1.0
Experimental Details

Interventions

Intervention(s)
This multi-wave study investigates overplacement in self-assessment. Wave 1 (N=600) utilized a domain-specific design to contrast an objective, verifiable task (IQ test) with a subjective, unverifiable task (driving ability). In Wave 2 (N=400), participants are randomized into one of two task types (Subjective IQ Prediction vs. Easy IQ Test) and one of two response scales (Quartile vs. Median).
Intervention Start Date
2026-03-03
Intervention End Date
2026-04-01

Primary Outcomes

Primary Outcomes (end points)
Categorical self-assessed placement of IQ performance and driving skills relative to a reference group of 99 other participants.
Primary Outcomes (explanation)
Overplacement is constructed by comparing the distribution of self-placements against a uniform distribution. In the Quartile condition, we measure the fraction of individuals placing themselves in the lowest quartile relative to the 25% expected by chance. In the Median condition, we measure the fraction of individuals placing themselves "Above Median" relative to the 50% expected by chance.

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The overall study employs a multi-wave between-subjects design to examine the interaction between task subjectivity, difficulty, and response scale granularity.

Wave 1: 600 participants were randomized into experimental cells crossing two domains, IQ (cognitive test) and driving ability, with two scale types (quartile vs. median), along with the presence or absence of monetary incentives for accuracy.

Wave 2: 400 additional participants are randomized into a 2x2 design (100 participants per cell) within the IQ domain. This wave crosses two new task types, Subjective Prediction (no test) and Easy IQ Test (simplified assessment), with the same two response scales (quartile vs. median).
Experimental Design Details
Not available
Randomization Method
Randomization is done using the built-in randomizer tool in the Qualtrics survey flow.
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
1000 individuals (not clustered).
Sample size: planned number of observations
1000 individuals.
Sample size (or number of clusters) by treatment arms
The study comprises a total of 1,000 participants across two waves of data collection.

Wave 1 (N=600): Participants were randomized into six blocks crossing domain and scale type:
Unincentivized IQ (Quartile): 100 individuals
Unincentivized IQ (Median): 100 individuals
Incentivized IQ (Quartile): 100 individuals
Incentivized IQ (Median): 100 individuals
Driving (Quartile): 100 individuals
Driving (Median): 100 individuals

Wave 2 (N=400): Participants are randomized into four blocks:
Subjective IQ (Quartile Scale): 100 individuals.
Subjective IQ (Median Scale): 100 individuals.
Easy IQ Test (Quartile Scale): 100 individuals.
Easy IQ Test (Median Scale): 100 individuals.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
The study is powered to detect moderate-to-large effects in self-placement bias using a standardized sample of N=100 per experimental cell, resulting in a total sample of N=1,000 across both waves. This sample size is chosen to address specific methodological requirements. The choice of N=100 per arm is calibrated against findings in the better-than-average (BTAE) literature, most notably Svenson (1981), which demonstrated that in subjective domains like driving, up to 80–90% of participants place themselves in the top 50% of the distribution. These high expected proportions provide the signal baseline for the study. A sample of N=100 per group allows for 80% power (1-β = 0.80) at a 5% significance level (α = 0.05) to detect a Minimum Detectable Effect of approximately 14 percentage points between treatment arms. This precision is necessary to determine if experimental manipulations, such as scale granularity (Quartile vs. Median), significantly shift these established baselines. A critique of self-assessment data in the literature is that observed overplacement may be a statistical artifact of random noise or regression to the mean, particularly at the boundaries of a response scale, as argued by Burson, Larrick, & Klayman (2006). By maintaining N=100 per cell, the study ensures that individual random errors cancel out, resulting in a stable and reliable estimate of the group's mean self-placement. This sample size provides the robustness needed to distinguish true error from the statistical artifacts identified in the literature, especially when comparing the Easy IQ and Subjective IQ tasks in Wave 2, where task difficulty is known to influence response variance. The study is designed to test the primary hypothesis that overplacement is driven by a desire to avoid the bottom of the distribution. In a uniform, unbiased distribution, 25% of participants are expected to place themselves in each quartile. With N=100, the study is sufficiently powered to detect if the proportion of participants in the bottom quartile (Q1) is significantly lower than this 25% benchmark (e.g., an observation of 11% or lower is significant at p < 0.05). Similarly, for the median condition, N=100 is sufficient to detect if "Above Median" placement significantly exceeds the 50% null hypothesis benchmark. This ensures that any detected deviations from the expected distribution represent meaningful biases rather than marginal shifts.
Supporting Documents and Materials

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information
IRB

Institutional Review Boards (IRBs)

IRB Name
University of California San Diego · Office of IRB Administration
IRB Approval Date
2026-03-02
IRB Approval Number
814254
Analysis Plan

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information