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Evolutionary Justifications for Overconfidence
2017
Social Science Research Network
This paper provides evolutionary justifications for overconfidence. In each period, players are pairwise matched to fight for a resource and there is uncertainty about who wins the resource if they engage in the fight. Players have different confidence levels about their chance of winning although they actually have the same chance of winning in reality. Each player may know or may not know her opponent's confidence level. We characterize the evolutionarily stable equilibrium, represented by
doi:10.2139/ssrn.3026885
fatcat:7rovsa3rnnfrlpxf7cfzm7feeq