Hogarth, Robin; Karelaia, Natalia - Department of Economics and Business, Universitat … - 2008
Excess entry – or the high failure rate of market-entry decisions – is often attributed to overconfidence exhibited by … entreprene urs. We show analytically that whereas excess entry is an inevitable consequence of imperfect assessments of … entrepreneurial skill, it does not imply overconfidence. Judgmental fallibility leads to excess entry even when everyone is …