Overconfidence Increases Productivity
AbstractRecent studies report that productivity increases under tournament reward structures than under piece rate reward structures. We conduct maze-solving experiments under both reward structures and reveal that overconfidence is a significant factor in increasing productivity. Specifically, subjects exhibiting progressively higher degrees of overconfidence solve more mazes. This result shows a positive aspect of overconfidence, which usually has been examined in its negative aspect as an expectation bias.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0814.
Date of creation: 01 Aug 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-09 (All new papers)
- NEP-CBE-2011-08-09 (Cognitive & Behavioural Economics)
- NEP-EFF-2011-08-09 (Efficiency & Productivity)
- NEP-EVO-2011-08-09 (Evolutionary Economics)
- NEP-EXP-2011-08-09 (Experimental Economics)
- NEP-HRM-2011-08-09 (Human Capital & Human Resource Management)
- NEP-LMA-2011-08-09 (Labor Markets - Supply, Demand, & Wages)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brad M. Barber & Terrance Odean, 2001. "Boys Will Be Boys: Gender, Overconfidence, And Common Stock Investment," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 261-292, February.
- Freeman, Richard B. & Gelber, Alexander M., 2008.
"Prize Structure and Information in Tournaments: Experimental Evidence,"
12156, University Library of Munich, Germany.
- Richard B. Freeman & Alexander M. Gelber, 2010. "Prize Structure and Information in Tournaments: Experimental Evidence," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 149-64, January.
- Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
- Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance In Competitive Environments: Gender Differences," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 1049-1074, August.
- Muriel Niederle & Lise Vesterlund, 2005.
"Do Women Shy Away From Competition? Do Men Compete Too Much?,"
NBER Working Papers
11474, National Bureau of Economic Research, Inc.
- Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away from Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1067-1101, 08.
- Muriel Niederle & Lise Vesterlund, 2005. "Do Women Shy Away from Competition? Do Men Compete too Much?," Discussion Papers 04-030, Stanford Institute for Economic Policy Research.
- Alberto Galasso & Timothy S. Simcoe, 2010. "CEO Overconfidence and Innovation," NBER Working Papers 16041, National Bureau of Economic Research, Inc.
- David Hirshleifer & Angie Low & Siew Hong Teoh, 2012.
"Are Overconfident CEOs Better Innovators?,"
Journal of Finance,
American Finance Association, vol. 67(4), pages 1457-1498, 08.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fumiko Matsumoto).
If references are entirely missing, you can add them using this form.