When "hope springs eternal": The role of chance in risk taking

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Karelaia, Natalia; Hogarth, Robin. When "hope springs eternal": The role of chance in risk taking. 2008
http://hdl.handle.net/10230/4577
To cite or link this document: http://hdl.handle.net/10230/4577
dc.contributor.author Karelaia, Natalia
dc.contributor.author Hogarth, Robin
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2008-12-01
dc.identifier.uri http://hdl.handle.net/10230/4577
dc.description.abstract In most naturally occurring situations, success depends on both skill and chance. We contrast experimental market entry decisions where payoffs depend on skill as opposed to combinations of skill and chance. Our data show differential attitudes toward chance by those whose self-assessed skills are low and high. Making chance more important induces greater optimism for the former who start taking more risk, while the latter maintain a belief that high levels of skill are sufficient to overcome the vagaries of chance. Finally, although we observed “excess entry” (i.e., too many participants entered markets), this could not be attributed to overconfidence.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1131
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title When "hope springs eternal": The role of chance in risk taking
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:23Z
dc.subject.keyword Behavioral and Experimental Economics
dc.subject.keyword skill
dc.subject.keyword chance
dc.subject.keyword overconfidence
dc.subject.keyword optimism
dc.subject.keyword competition
dc.subject.keyword risk taking
dc.subject.keyword gender differences
dc.rights.accessRights info:eu-repo/semantics/openAccess


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