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This paper analyzes the self-identification process and its role in motivation. We build a model of self-confidence … performance. Higher self-confidence thus enhances motivation, and this creates incentives for the manipulation of self …-perception. An individual suffering from time-inconsistency may thus want to enhance the self-confidence of his future selves, so as …
Persistent link: https://www.econbiz.de/10014161487
Overconfident behavior, the excessive willingness to bet on one’s performance, may be driven by optimistic beliefs and/or ambiguity attitudes. Separating these factors is key for understanding and correcting overconfident behavior, as they may call for different corrective actions. We present...
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Digitalization has changed existing business models and enabled new ones. This development has been accompanied by the emergence of new pricing options and the possibility of applying established pricing models in new domains. Today, consumers can, for example, pay for accessing a product...
Persistent link: https://www.econbiz.de/10012033570
variable environments and revise their self-confidence over time. In contrast, underconfident decision-makers might be trapped …
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We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more risk-averse to imminent than to distant...
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This study analyzes group influence on investment decisions in an attempt to determine the correlation between two financial behavior tendencies: overconfidence and herding behavior. An experiment was carried out with 92 students from the Universidade Católica de Brasília. The results...
Persistent link: https://www.econbiz.de/10013105697