Author(s): Bohn, Robin
Date: 2018
Persistent ID: http://hdl.handle.net/10362/32552
Origin: Repositório Institucional da UNL
Subject(s): Laboratory experiment; Overconfidence; Tournament entry; Domínio/Área Científica::Ciências Sociais::Economia e Gestão
Overconfidence is a persistent bias that entails less-than-optimal decision making. Reducing overconfidence is of high interest to increase efficiency. Conducting a laboratory experiment at Nova SBE, this research proposes a novel information-based treatment on over-entry in a competitive setting. Participants receive information on their competitor ahead of decision making, including nationality. It is hypothesized that this information raises participants awareness of cross-nationality exposure as in- and out-groups which alters decision making. Findings are suggestive that treatment exposure reduces over-entry within the laboratory experiment. This outcome advocates that promoting multicultural environments could be beneficial to improve efficient decision making.
