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A large body of literature finds that managerial overconfidence increases risk-taking by financial institutions. This … introduced after the financial crisis as a natural experiment, I find that overconfidence-induced risk-taking decreases in … financial institutions subject to stricter regulation. Following the easing of these regulations, overconfidence-induced risk …
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are not. When governments maximize tax revenues, we show that overconfidence unambiguously reduces the bonus tax rate that … overconfidence is increased. …
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We study the relationship between overconfidence and the political and financial behavior of a nationally … representative sample. To do so, we introduce a new method of eliciting overconfidence that is simple to understand, quick to … price forecasting errors, and more extreme political views. Additionally, we find that overconfidence is correlated with …
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risk] and those that pay a fixed wage [low earnings risk], and (ii) the subsequent choice of how much effort to exert …
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informed subjects are significantly more confident than the beliefs of subjects in the control condition. By generating …
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There are many important decision problems where learning through experimentation is costly or impossible. In these situations, individuals may try to learn from observing the outcomes of others who have made similar decisions. Often, however, information about others comprises a selected...
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different incentive schemes, and the subsequent choice of how much effort to exert within the job. An exogenous increase in …
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