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On the overconfidence-effect in teams

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  • Wickhorst, Hanke
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    Abstract

    This paper analyses the effects of overconfidence on a coordination problem within a team of two agents and in the presence of effort complementarities. We show that in several settings an overconfidence bias or the mere anticipation of having an overconfident partner might not only help mitigate the coordination problem but also result in a Pareto improvement. -- In diesem Papier werden die Effekte eines Overconfidence-Bias auf das Koordinationsproblem innerhalb eines Teams betrachtet. In einem Team aus zwei Agenten, deren Arbeitseinsätze komplementär sind, zeigt sich, dass ein Overconfidence-Bias oder aber auch die Antizipation eines overconfidenten Partners das entstandene Koordinationsproblem abschwächen und möglicherweise sogar zu einer Pareto-Verbesserung führen können.

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    File URL: http://econstor.eu/bitstream/10419/45033/1/642371156.pdf
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    Bibliographic Info

    Paper provided by University of Münster, Institute for Organisational Economics in its series Discussion Papers of the Institute for Organisational Economics with number 3/2010.

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    Date of creation: 2010
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    Handle: RePEc:zbw:umiodp:32010

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