Incorrect weighting of absolute performance in self-assessment

Abstract

Students spend much of their life in an attempt to assess their aptitude for numerous tasks. For example, they expend a great deal of effort to determine their academic standing given a distribution of grades. This research finds that students use their absolute performance, or percentage correct as a yardstick for their self-assessment, even when relative standing is much more informative. An experiment shows that this reliance on absolute performance for self-evaluation causes a misallocation of time and financial resources. Reasons for this inappropriate responsiveness to absolute performance are explored. © 2010 Springer Science+Business Media B.V.