Pires, Tiago; Santos-Pinto, Luís - Départment d'économétrie et d'économie politique … - 2008
This paper analyzes the impact of overconfidence on the timing of entry in markets, profits, and welfare. To do that the paper uses an endogenous timing model where (i) players have private information about costs and (ii) one player is overconfident and the other is rational. The paper shows...