Excess entry refers to the high failure rate of new entrepreneurial ventures. Economic explanations suggest 'hit and run' entrants and risk-seeking behavior. A psychological explanation is that people (entrepreneurs) are overconfident in their abilities (Camerer & Lovallo, 1999). Characterizing...

Social identity theory has become increasingly important for economists. I discuss the contribution of Van Bavel and Packer's "The Power of Us" in light of what economists (especially experimental ones) can learn from their research.