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Institutions matter greatly in the development of competitive advantage. Different institutional strategies to manipulate and shape institutions are discussed in the literature. This paper aims at extending the existing conceptual model of membership strategy. Despite being referenced...
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and statements, and we investigate whether communication improves information aggregation and the accuracy of group … decisions. Our findings suggest that the effect of communication depends on the underlying accuracy of individual judgments …. Communication improves accuracy when individuals tend to be incorrect, but diminishes it when individuals are likely to be correct …
Persistent link: https://www.econbiz.de/10014495051
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Empirical evidence suggests that managerial overconfidence and government guarantees contribute substantially to excessive risk-taking in the banking industry. This paper incorporates managerial overconfidence and limited bank liability into a principal-agent model, where the bank manager...
Persistent link: https://www.econbiz.de/10011975913
, for example, pay for accessing a product instead of buying it. Within such sharing services, consumers can usually choose …
Persistent link: https://www.econbiz.de/10012033570
Overconfidence is one of the most important biases in financial markets and commonly associated with excessive trading and asset market bubbles. So far, most of the finance literature takes overconfidence as a given, "static" personality trait. In this paper we introduce a novel experimental...
Persistent link: https://www.econbiz.de/10012034133
We experimentally examine the effects of price competition in markets for expe-rience goods where sellers can build up reputations for quality. We compare price competition to monopolistic markets and markets where prices are exogenously fixed (somewhere between the endogenous oligopoly and...
Persistent link: https://www.econbiz.de/10010498486
Recent research in contract theory on the effects of behavioral biases implicitly assumes that they are stable, in the … subjects' self-confidence. Our novel experimental design allows us to disentangle selection into insurance from the effects of …
Persistent link: https://www.econbiz.de/10011899247
I investigate whether two mechanisms leading to biased beliefs about success, overconfidence and competition neglect, influence decisions to enter competitive environments. I use a controlled laboratory setting that allows to elicit belief distributions related to absolute as well as relative...
Persistent link: https://www.econbiz.de/10011900069