The Influence of Exogenously Induced Stress and Performance-Based Feedback on Confidence

Abstract

This thesis investigates how exogenous stress and performance-based feedback affect individual confidence, measured through prediction intervals. Two experiments reveal that stress slightly increases confidence, while feedback has no significant effect—alone or combined with stress. An exploratory analysis considers the influence of Big Five personality traits and risk attitudes on confidence. The findings suggest that while stress has a statistically significant effect, its economic significance is minimal, and feedback does not meaningfully influence confidence.