How do judgmental overconfidence and overoptimism shape innovative activity?

Details

Serval ID
serval:BIB_29652D046284
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
How do judgmental overconfidence and overoptimism shape innovative activity?
Journal
Games and Economic Behavior
Author(s)
Herz  H., Schunk  D., Zehnder  C.
ISSN
0899-8256
Publication state
Published
Issued date
01/2014
Peer-reviewed
Oui
Volume
83
Pages
1-23
Language
english
Abstract
Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue that the connection between overconfidence and innovation is more complex than the previous literature suggests. In particular, we show theoretically and experimentally that different forms of overconfidence may have opposing effects on innovative activity. While overoptimism is positively associated with innovation, judgmental overconfidence is negatively linked to innovation. Our results indicate that future research is well advised to take into account that the relationship between innovation and overconfidence may crucially depend on what type of overconfidence is most prevalent in a particular context.
Keywords
Innovation, Entrepreneurship, Overconfidence, Experiment
Web of science
Create date
07/11/2013 18:30
Last modification date
21/08/2019 5:14
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