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And a vision appeared unto them of a great profit: evidence of self-deception among the self-employed

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  • Arabsheibani, Gholamreza
  • de Meza, David
  • Maloney, John
  • Pearson, Bernard

Abstract

Evidence is presented that the self employed expect better financial outcomes than do employees but experience worse realisations. This is consistent with theories that entrepreneurship is driven by unrealistic optimism.
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Suggested Citation

  • Arabsheibani, Gholamreza & de Meza, David & Maloney, John & Pearson, Bernard, 2000. "And a vision appeared unto them of a great profit: evidence of self-deception among the self-employed," Economics Letters, Elsevier, vol. 67(1), pages 35-41, April.
    • Handle: RePEc:eee:ecolet:v:67:y:2000:i:1:p:35-41
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    References listed on IDEAS

    as
    1. Simon Wren-Lewis, 1985. "The Quantification of Survey Data on Expectations," National Institute Economic Review, National Institute of Economic and Social Research, vol. 113(1), pages 39-49, August.
    2. Michael Manove & A. Jorge Padilla, 1999. "Banking (Conservatively) with Optimists," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 324-350, Summer.
    3. de Meza, David & Southey, Clive, 1996. "The Borrower's Curse: Optimism, Finance and Entrepreneurship," Economic Journal, Royal Economic Society, vol. 106(435), pages 375-386, March.
    4. Jürg Niehans, 1997. "Adam Smith and the Welfare Cost of Optimism," History of Political Economy, Duke University Press, vol. 29(2), pages 185-200, Summer.
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    More about this item

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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