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subjects' self-confidence. Our novel experimental design allows us to disentangle selection into insurance from the effects of …Recent research in contract theory on the effects of behavioral biases implicitly assumes that they are stable, in the … case. We show that in an insurance context, being insured against losses that may be incurred in a real-effort task changes …
Persistent link: https://www.econbiz.de/10011812974
subjects' self-confidence. Our novel experimental design allows us to disentangle selection into insurance from the effects of …Recent research in contract theory on the effects of behavioral biases implicitly assumes that they are stable, in the … case. We show that in an insurance context, being insured against losses that may be incurred in a real-effort task changes …
Persistent link: https://www.econbiz.de/10011917380
subjects\' self-confidence. Our novel experimental design allows us to disentangle selection into insurance from the effects of …Recent research in contract theory on the effects of behavioral biases implicitly assumes that they are stable, in the … case. We show that in an insurance context, being insured against losses that may be incurred in a real-effort task changes …
Persistent link: https://www.econbiz.de/10011932945
We design a novel insurance advice mechanism aimed at promoting trust and cooperation in markets with asymmetric … information. In a buyer-seller game, sellers are given the option to advise buyers on whether to purchase third-party insurance … cooperative and strategic sellers will advise buyers not to purchase the insurance. Once this advice has been given, strategic …
Persistent link: https://www.econbiz.de/10013218362
I investigate whether two mechanisms leading to biased beliefs about success, overconfidence and competition neglect … distributions related to absolute as well as relative overconfidence to study it comprehensively and introduce two treatment … variations: First, some participants receive detailed performance feedback addressing absolute and relative overconfidence before …
Persistent link: https://www.econbiz.de/10011900069
A long-standing puzzle is how overconfidence can persist in settings characterized by repeated feedback. This paper …
Persistent link: https://www.econbiz.de/10014311540
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/10010342215
holding positive beliefs. This finding provides a behavioral explanation why and how overconfidence can evolve in the presence …
Persistent link: https://www.econbiz.de/10013433247
Persistent link: https://www.econbiz.de/10010191082
overconfidence and overentry into competition. In a broader context, the results provide an explanation for the overconfidence of …
Persistent link: https://www.econbiz.de/10010403249