| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5060926 | Economics Letters | 2011 | 4 Pages |
Abstract
⺠We consider a contest between a rational and an overconfident agent. ⺠We examine the relative payoff effects of overconfidence. ⺠Being overconfident increases effort but possibly also the success probability. ⺠The biased agent can have a comparative advantage. ⺠Overconfidence can even lead to an advantage in absolute terms.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Sandra Ludwig, Philipp C. Wichardt, Hanke Wickhorst,