SIMULTANEOUS OVERCONFIDENCE AND UNDERCONFIDENCE - THE ROLE OF ERROR IN JUDGMENT PROCESSES

Two empirical judgment phenomena appear to contradict each other. In t he revision-of-opinion literature, subjective probability (SP) judgmen ts have been analyzed as a function of objective probability (OF) and generally have been found to be conservative, that is, to represent un derconfidence. In the calibration literature, analyses of OP (operatio nalized as relative frequency correct) as a function of SP have led to the opposite conclusion, that judgment is generally overconfident. Th e authors reanalyze 3 studies and show that both results can be obtain ed from the same set of data, depending on the method of analysis. The simultaneous effects are then generated and factors influencing them are explored by means of a model that instantiates a very general theo ry of how SP estimates arise from true judgments perturbed by random e rror. Theoretical and practical implications of the work are discussed .