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The effect of cross-nationality exposure on competitive tournament entry and overconfidence
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Resumo(s)
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.
Descrição
Palavras-chave
Laboratory experiment Overconfidence Tournament entry