English, Article edition: Optimism and Overconfidence in Search Juan Dubra

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Optimism and Overconfidence in Search
Author
  • Juan Dubra
Physical Description
  • article
Notes
  • In a standard search model I relax the assumption that agents know the distribution of offers and characterize the behavioral and welfare consequences of overconfidence. Optimistic individuals search longer than pessimists if they are equally "stubborn" and high offers are good news. Otherwise, the pessimists search longer. The welfare of unbiased individuals is larger than that of overconfident decision makers if the latter's biases are large and searchers stubborn. Otherwise, the overconfident may be better off. Finally, I give a testable implication of overconfidence and discuss some applications and policy issues. (Copyright: Elsevier)
  • RePEc:red:issued:v:7:y:2004:i:1:p:198-218
Language
  • English
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