This paper illustrates the difficulties in quantifying overconfidence in experimental finance and suggests a procedure for the development of a reliable overconfidence measurement instrument. Following the outlined two–stage procedure a sample measure of overconfidence is developed. First, a pilot test is conducted to divide the initial 50 items into three difficulty levels: hard, moderate and easy questions. In the second stage a final instrument with six questions of each difficulty level was compiled and tested. Reliability of the final instrument was assessed.
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Michailova et al. (2014) studied this question.
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