Showing 1 - 10 of 10
A tradition from Knight (1921) argues that more risk tolerant individuals are more likely to become entrepreneurs, but perform worse. We test these predictions with two risk tolerance proxies: stock market participation and personal leverage. Using investment data for 400,000 individuals, we...
Persistent link: https://www.econbiz.de/10010610137
labor market trajectories. Using an experiment to derive students' levels of overconfidence, and preferences for … and overconfidence, but not risk aversion, is systematically related with expectations about future earnings: individuals … in overconfidence and competitiveness explain about 18% of the gender gap in earnings expectations. These experimental …
Persistent link: https://www.econbiz.de/10010959644
This paper studies the influence of information on entry choices in a competition with a controlled laboratory experiment. We investigate whether information provision attracts mainly high productivity individuals and reduces competition failure, where competition failure occurs when a subject...
Persistent link: https://www.econbiz.de/10011279246
In this paper we ask if reports of private information about skills, abilities or achievements are affected by image concerns. We develop a simple model that illustrates how image utility can lead to misreporting of private information in contexts where truthful reports maximize monetary...
Persistent link: https://www.econbiz.de/10011279286
underrepresentation of women, namely, gender differences in overconfidence concerning past performance, in the willingness to exaggerate … past performance to the group, and in the reaction to monetary incentives. We find that men’s overconfidence is the driving …
Persistent link: https://www.econbiz.de/10008693848
information leads people to choose tasks that raise expected output, however extreme overconfidence leads people to undertake … tasks that are excessively challenging. Consistent with our results, psychologists have found that moderate overconfidence …
Persistent link: https://www.econbiz.de/10005039646
additional individual characteristics such as subjects’ risk attitudes, measures of selfassessment and overconfidence, social … overconfidence affect worker self-selection, in particular into tournaments. Fourth, risk averse workers prefer fixed payments and …
Persistent link: https://www.econbiz.de/10005703774
Using a large running race in Sweden, this study shows that there are male-dominated environments in which the selection of women who participate are more likely to be confident/competitive and that, within this group, performance improves equally for both genders.
Persistent link: https://www.econbiz.de/10005822984
relatively. We test three different theories about observed relative overconfidence. The first theory notes that simple … asymmetry produces overconfidence (Kőszegi, 2006; Weinberg, 2006). We test an important specific prediction of these models … might make this belief worse. Our data also reject this prediction. The third theory is that overconfidence is induced by …
Persistent link: https://www.econbiz.de/10008529123
This paper investigates collective denial and willful blindness in groups, organizations and markets. Agents with anticipatory preferences, linked through an interaction structure, choose how to interpret and recall public signals about future prospects. Wishful thinking (denial of bad news) is...
Persistent link: https://www.econbiz.de/10010704406