A Bibliographic Review of Illusion of Knowledge in the Financial Field

Abstract

People tend to believe that more information will improve the accuracy of predicting outcomes in highly uncertain situations. This behaviour, known as ‘illusion of knowledge,’ is related to overconfidence in multiple areas of study, and attracts scientific attention. The aim of this research is to determine the academic evolution of the illusion of knowledge within the financial field. For this purpose, two different methodologies have been used to generate a more solid contribution. The first part is based on the ReSiste-CSH bibliographic framework raised for the study of social sciences, and the second part uses the Bibliometrix software to measure the performance of the subject over time. The Web of Science academic database was used as a reference source for the period 1987–2021, resulting in a sample of 1,202 papers in highly impactful academic journals. The results show a positive evolution over time in the number of publications, as well as a geographical concentration in journals of the Q1 category from the United States and the United Kingdom, together with a close relationship with areas of study such as psychology, business and economics, among others. JEL Code: G41