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We develop a simple model that describes individuals’ self-assessments oftheir abilities. We assume that individuals learn about their abilities from appraisalsof others and experience. Our model predicts that if communicationis imperfect, then (i) appraisals of others tend to be too positive,...
Persistent link: https://www.econbiz.de/10010325242
This article analyzes under which conditions a manager can motivate a junior worker by verbal communication, and explains why communication is often tied up with organizational choices as job enlargement and collaboration. Our model has two important features. First, the manager has more...
Persistent link: https://www.econbiz.de/10010325390
Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue … that the connection between overconfidence and innovation is more complex than the previous literature suggests. In … particular, we show theoretically and experimentally that different forms of overconfidence may have opposing effects on …
Persistent link: https://www.econbiz.de/10010332036
We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011584855
Why are people so often overconfident? We conduct an experiment to test the hypothesis that people become overconfident to more effectively persuade or deceive others. After performing a cognitively challenging task, half of our subjects are informed that they can earn money by convincing others...
Persistent link: https://www.econbiz.de/10011663455
In this paper, we design an investment game which allows us to study the influence of selection when learning from …
Persistent link: https://www.econbiz.de/10011984926
We examine consumer certainty of future preferences and overconfidence in predicting future preferences. We explore how … preference certainty and overconfidence impact the option value to revise today's decisions in the future. We design a laboratory … overconfidence in predicting future preferences as: the difference between actual accuracy at predicting future choices and stated …
Persistent link: https://www.econbiz.de/10012101029
models of social learning to investigate the micro-level mechanisms. We find that overconfidence and conservatism contribute …We investigate how the selection process of a leader affects team performance with respect to social learning. We use a …
Persistent link: https://www.econbiz.de/10011816763
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/10011932952
This experiment explores whether individuals know that other people are biased. We confirm that overestimation of abilities is a pervasive problem, but observe that most people are not aware of it, i.e. they think others are unbiased. We investigate several explanations for this result. As a...
Persistent link: https://www.econbiz.de/10010264906