2020

The Impact of Overconfidence and Ambiguity Attitude on Market Entry

Särtryck nr 2020:27

Författare: Cédric Gutierrez, Thomas Åstebro och Tomasz OblojÅr: 2020 Publikation: Organization Science Årgång (nr): 31 (2) Sidor: 308–329
Artikeln online (behörighet kan krävas)


We study the behavioral drivers of market entry. An experiment allows us to disentangle the impact on entry across different types of markets of two key behavioral mechanisms: overconfidence and attitude toward ambiguity. We theorize and show that the causal effect of overconfidence on entry is limited to skill-based markets and does not appear in those that are chance based. Moreover, we also find that, independent of confidence levels, individuals exhibit ambiguity-seeking behavior when the result of the competition depends on their skills, which, in turn, leads to higher levels of entry. This preference for ambiguity thus can explain results that have previously been attributed to overconfidence. Our results challenge existing literature that has inferred overconfidence from differential entry levels across types of markets.


Referens:
Gutierrez, Cédric, Thomas Åstebro och Tomasz Obloj (2020), "The Impact of Overconfidence and Ambiguity Attitude on Market Entry". Organization Science 31(2), 308–329.

Thomas Åstebro

Kontakt

Tel: +33 1 39677483
astebro@hec.fr

Aktuell forskare

Gabriel Heller Sahlgren Ph.D.

Ämnesområden: Hälsa, privatiseringar, skattefinansierade tjänster, utbildning

Några av de frågor Gabriel Heller Sahlgren försöker besvara i sin forskning:

  • Vad krävs för att skolmarknader ska fungera?
  • Hur reagerar aktörer inom skolväsendet på ekonomiska incitament?
  • Skillnader mellan vinstdrivande och icke-vinstdrivande skolor.

 

Institutet för Näringslivsforskning, Grevgatan 34 - 2 tr, Box 55665, SE-102 15 Stockholm, Sweden | Tel: +46-(0)8-665 45 00 | info@ifn.se