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Our experiment investigates managers’ self-predictions of their subsequent performance and, based upon, their choice of a collaborator. Our results show that managers’ self-predictions are not biased anymore after they are informed about the performance of a reference group. In spite of...
Persistent link: https://www.econbiz.de/10010264922
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
This paper investigates the relationship between market overconfidence and occurrence of stock-price bubbles. Sixty … participants traded stocks in ten experimental asset markets. Markets were constructed on the basis of subjects' overconfidence … bubble measures and trading volume on overconfident markets. Altogether, our data provide evidence that overconfidence has …
Persistent link: https://www.econbiz.de/10010285715
overconfidence in a contest can improve the agent's performance relative to an unbiased opponent and can even lead to an advantage …
Persistent link: https://www.econbiz.de/10010427565
We extend Akerlof ’s (1970) “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 at display for sale. Overconfident buyers do not update according to Bayes’ rule but take the noisy signal at...
Persistent link: https://www.econbiz.de/10010427601
In this paper, we study the individual payoff effects of overconfident self-perception in teams. In particular, we demonstrate that the welfare of an overconfident agent in a team of one rational and one overconfident agent or a team of two overconfident agents can be higher than that of the...
Persistent link: https://www.econbiz.de/10010427615
There is ample empirical evidence documenting widespread financial illiteracy and limited pension knowledge. At the same time, the distribution of wealth is widely dispersed and many workers arrive on the verge of retirement with few or no personal assets. In this paper, we investigate the...
Persistent link: https://www.econbiz.de/10010308580
and overconfidence in hard tasks) found in a large number of studies using non-incentivised self-reports. The latter …
Persistent link: https://www.econbiz.de/10011434351
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