We consider the motivations of a customer-facing focal firm in a supply network regarding a choice between options for production methods and project direction. One option is purely economic, but with a negative social impact, while the other is a socially responsible alternative that entails a...

We present a theory of entrepreneurial behavior that explores the relationship between overconfidence and successful firm outcomes, such as acquisition or IPO. In our model, increasing overconfidence produces two conflicting effects on the probability of a successful outcome: it not only induces...

We present a theory of entrepreneurial behavior that explores the relationship between overconfidence and successful firm outcomes, such as acquisition or IPO. In our model, increasing overconfidence produces two conflicting effects on the probability of a successful outcome: it not only induces...

Behavioral economists are increasingly debating the desirability of overconfidence for individual and social welfare. For example, in Gervais and Goldstein's (2003) model of teamwork, a two-player team consisting of one overconfident and one rational agent outperforms a team consisting of two...

It has been recognised that a major contributory factor to the current financial crisis has been the excessive risk-taking behaviour of the banking sector. The UK Banking Commission Report proposes, as a remedy, that bankers who take excessive risks that lead their banks into bail-out situations...