We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a … possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more … results to the literature on empirically observed overconfidence and excessive risk taking in several domains of financial and …

decision and its eroding biases were still elusive. The vital role of emotion as a bias in decision making was also … control, overconfidence, and investors’ decision making. In total, 456 initial investors in Indonesia participated in online … increased the illusion of control, but not overconfidence or decision making, contrary to the bulk of previous studies. The …

A long-standing puzzle is how overconfidence can persist in settings characterized by repeated feedback. This paper …