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 … overestimates the returns to effort and risk. We find that managerial overconfidence necessitates an intervention into banker pay …

This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt-taking. In a … represent real financial losses. To assess the external validity, we find further evidence for the link between overconfidence …

biased. Overconfidence was identified as one of the key drivers. Yet, prior research is nonexperimental and focused on the so …-called flat-rate bias. By contrast, we examine the effects of overconfidence on tariff choice experimentally. We show that …

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 design which allows us to track different measures of overconfidence …