In a standard search model I relax the assumption that agents know the distribution of offers and characterize the behavioral and welfare consequences of overconfidence. Optimistic individuals search longer if they are equally stubborn and high offers are good news. Otherwise, the pessimists...

Plant-level data from US textile industries indicate : (1) significant cross-sectional dispersion in plant-level productivity within narrowly defined industries; (2) that highly productive plants grow faster and are less likely to exit; (3) dispersion in productivity is larger in industries with...