Geyer, Hannah; Wickhorst, Hanke - Wirtschaftswissenschaftliche Fakultät, Westfälische … - 2011
We analyse the effect of overconfidence in a model of team-production with effort complementarities. We show that overconfidence may not only enhance an overconfident agent's effort but also that of a rational one. Focusing the agents' payoffs we see that this increase in effort can be to the...