We experimentally investigate the determinants of overconfidence and test the hypothesis, advanced by Robert Trivers, that overconfidence serves to more effectively persuade or deceive others. After performing a cognitively challenging task, half of our subjects are informed about the...

We examine the characteristics of effective leaders in a simple leader-follower voluntary contributions game. We focus on two factors: the individual's cooperativeness and the individual's beliefs about the cooperativeness of others. We find that groups perform best when led by those who are...

We study a laboratory social dilemma game in which incentives to steal from others lead to the socially inefficient diversion of resources from production unless the members of a given mini-society can abide by norms of non-theft or engage in low cost collective protection of their members'...

We test in the laboratory how entrepreneurs' skill perceptions influence the design of financing and advising contracts. Our theoretical framework proposes that self-confident entrepreneurs prefer issuing debt whereas low self-confident ones prefer equity which induces strong investor...