Overconfidence Review Of Its Economic Implications

Download or read book Overconfidence. Review of its Economic Implications written by Stefan Dietrich and published by GRIN Verlag. This book was released on 2018-05-02 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2017 in the subject Psychology - Work, Business, Organisation, grade: 1,00, University of Mannheim, course: Behavioral Economics Seminar, language: English, abstract: Overconfidence is believed to be one of the most widespread behavioral biases. Empirical evidence supports this argument in many instances and differentiates between various forms and manifestations. Whether this is in sum economically negative for the individual or society remains unanswered in the literature. I analyze the economic implications of overconfidence based on recent research and connects them to reasons and viable solutions to overcome this bias in certain areas of the economic realm: consumer choices, market entry and decision making of firms, financial markets and bubbles.