Overconfidence and Generosity: An Online Experiment on Covid-19

Under the backdrop of the pandemic of COVID-19, people have different predictions of the future condition and understanding of the current status. In this paper, findings from an online experiment show how overconfidence can play an important role in terms of decision-making of the pandemic: among the main findings from data analysis, self overconfidence significantly increases donations. Also, with the growth of age, people tend to donate more while as they advance the education level, people prefer to donate less. The results of this research can further inform policymakers on individuals’ behaviors during a negative economic shock.