salient perturbations, we propose a strategic foundation of overconfidence. Since overconfident statements are used in …

We study the effects of overconfidence in a two-period investment-decision agency setting. Under common priors, agent … from first-period investment. This implies that agent overconfidence mitigates the agency problems arising from the agent …

are not. In this setting we show that overconfidence (i) unambiguously increases the bonus component in the managers … overconfidence can contribute to explaining both the increasing role of bonus contracts and the fall in marginal tax rates for high …

We analyze the effects of optimism and overconfidence when the manager's compensation package includes severance pay … negative effect on profit. Overconfidence, on the contrary, reduces incentive pay as shown by the previous literature, while … its effect on severance pay depends on the intensity of the bias. High values of overconfidence yield an inefficient level …

Gender differences in overconfidence have been extensively documented in the empirical literature, but the implications … for labor market outcomes are not well understood. In this paper, we analyze how men's relatively higher overconfidence …, they incur higher effort costs and discourage their peers, and we find that overconfidence can be either self-serving or …

overconfidence. We find experimental evidence that individuals update beliefs about their own investment ability based on realized … disposition effect leads to overconfidence and examine model implications for investors' trading behavior and expected profit. …