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Consequences of unrealistic optimism and pessimism for actual behavior: An experimental evidence

In this study, we performed experiments to investigate the negative consequences of unrealistic optimism and pessimism. We also attempted to extend the theory of unrealistic optimism and pessimism by investigating how past events running contrary to expectations impact unrealistic optimism and pessimism. We made participants play an insurance decision game pertaining to a gamble for two consecutive rounds while inducing unrealistic optimism and pessimism within the context of the game.