overconfidence bias does not aect informational efficiency, price volatility, rational traders’ expected profits or their welfare …. Intuitively, as overconfidence goes up, so does price infornativeness, which makes rational agents cut their information …

underconfident. Self-selection implies greater confidence (but not necessarily overconfidence) among those who start new businesses …Excess entry – or the high failure rate of market-entry decisions – is often attributed to overconfidence exhibited by … entrepreneurial skill, it does not imply overconfidence. Judgmental fallibility leads to excess entry even when everyone is …

. Overconfidence, as such, plays no role. This hypothesis is confirmed in an experimental study that also documents the phenomenon of …

), this could not be attributed to overconfidence. …

ability. We assume that the joint distribution of an individual firm’s profit and market movements depends on the ability of …