The available evidence from numerous studies in psychology suggests that overconfidence is a much more important … investment decisions, generating a \North American" equilibrium with overconfidence and low sensitivity to shame, and a \Japanese …" equilibrium with high sensitivity to shame and no overconfidence. The analysis identifies the key equilibrium costs as well as the …

The available evidence from numerous studies suggests that overconfidence is a more important phenomenon in North …, it yields novel implications for differences in overconfidence and behavior within countries. A crucial tradeoff arises … initiative and investment in new activities. Overconfidence and high sensitivity to shame emerge as substitute mechanisms to …