The effect of cross-nationality exposure on competitive tournament entry and overconfidence
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. P...
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| Format: | masterThesis |
| Language: | eng |
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2018
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| Online Access: | http://hdl.handle.net/10362/32552 |
| Country: | Portugal |
| Oai: | oai:run.unl.pt:10362/32552 |
| Summary: | 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. |
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