On the positive effects of overconfident self-perception in teams

Sandra Ludwig; Philip C. Wichardt und Hanke Wickhorst

In this paper, we study the individual payoff effects of overconfident self-perception in teams. In particular, we demonstrate that the welfare of an overconfident agent in a team of one rational and one overconfident agent or a team of two overconfident agents can be higher than that of the members of a team of two rational agents. This result holds irrespective of the assumption about the agents' awareness of their colleague's bias. Moreover, we show that an overcondent agent is always better of when he is unaware of a potential bias of his colleague.

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Year of publication:	2011 ; This version: April 29, 2011
Authors:	Ludwig, Sandra ; Wichardt, Philipp C. ; Wickhorst, Hanke
Publisher:	München : Univ., Volkswirtschaftl. Fak.
Subject:	Overconfidence \| Team Production \| Arbeitsgruppe \| Team \| Vertrauen \| Confidence \| Persönlichkeitspsychologie \| Personality psychology \| Leistungsmotivation \| Work motivation \| Wohlfahrtsanalyse \| Welfare analysis \| Theorie \| Theory