Description

Tendency for people to perceive their abilities, attributes, and personality traits as superior compared with their average peer.

Alicke, M. D., & Govorun, O. (2005). The better-than-average effect. In M. D. Alicke, D. A. Dunning, J. I. Krueger, M. D. Alicke, D. A. Dunning, & J. I. Krueger (Eds.), The self in social judgment (pp. 85–106). New York, NY: Psychology Press.

Items (3)

1. Assume that the average annual return of the Taiwan stock market in the past 15 years (2003–2017) is 9.85%. In any given year, how much do you think your own stock investment will have generated?

a. Less than 9.85% (-1)
b. About 9.85% (0)
c. More than 9.85% (1)
d. Far more than 9.85% (2)

2. Do you believe that you can control your ability to make your chosen investment's performance beat the market?

a. Not at all
b. A little (-1)
c. To some extent (0)
d. Pretty much (1)

3. Please compare with other drivers on the road. Do you think your driving skills are better than those of the others?

a. Worse than the average (-1)
b. Near the average (0)
c. Better than the average (1)
d. Much better than the average (2)

Scoring

Each option is associated with a given number of points and the total score is the sum of the responses.

Source

Rieger, M. O., Wang, M., Huang, P.-K., & Hsu, Y.-L. (2022). Survey evidence on core factors of behavioral biases. Journal of Behavioral and Experimental Economics, 101912.