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Persistent link: https://www.econbiz.de/10014502189
. Higher risk taking may be explained by a higher degree of overconfidence, less herding behavior, or a lower degree of risk … overconfidence is mixed. We will argue that this mixed evidence may be likely due to the heterogeneity in the employed definitions of … risk taking and overconfidence. …
Persistent link: https://www.econbiz.de/10010261673
We investigate the theoretically proposed link between judgmental overconfidence and trading activity. In addition to … the relevant bias in the theoretical overconfidence literature. We relate the obtained overconfidence measures to trading …
Persistent link: https://www.econbiz.de/10010291808
Many firms fail shortly after inception. Yet individuals continue starting businesses. Prewar economists such as Keynes invoked animal spirits and stressed psychological factors in their explanations of economic behavior. Using a large sample obtained from surveys conducted in 18 countries, we...
Persistent link: https://www.econbiz.de/10010292631
profited from high firm rents in the past. We interpret our findings as evidence for overconfidence generated by imperfectly …
Persistent link: https://www.econbiz.de/10010294904
profited from high firm rents in the past. We interpret our findings as evidence for overconfidence generated by imperfectly …
Persistent link: https://www.econbiz.de/10011310718
Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue … that the connection between overconfidence and innovation is more complex than the previous literature suggests. In … particular, we show theoretically and experimentally that different forms of overconfidence may have opposing effects on …
Persistent link: https://www.econbiz.de/10010332036
structures. We conduct maze-solving experiments under both reward structures and reveal that overconfidence is a significant … factor in increasing productivity. Specifically, subjects exhibiting progressively higher degrees of overconfidence solve … more mazes. This result shows a positive aspect of overconfidence, which usually has been examined in its negative aspect …
Persistent link: https://www.econbiz.de/10010332484
We extend Akerlof (1970)'s 'Market for Lemons' by assuming that some buyers are overconfident. Buyers in our model receive a noisy signal about the quality of the good that is on display for sale. Overconfident buyers do not update according to Bayes' rule but take the noisy signal at face...
Persistent link: https://www.econbiz.de/10010333856
insufficiently reflected in anticipations of project success. Furthermore, project managers' overconfidence may lead them to assess … how overconfidence on the part of project managers influences such assessments. We assume that project managers' risk … awareness serves as a mediator between overconfidence and risk assessment. To observe the planning behavior of 204 project …
Persistent link: https://www.econbiz.de/10011624505