Overconfident Distribution Channels
Volume: 28, Issue: 6, Pages: 1347 - 1365
Published: Jun 1, 2019
Abstract
We study the effects associated with overconfidence in distribution channels, where overconfidence is defined as a decision maker’s cognitive bias in perceiving the expected outcome of an uncertain event as more certain than it likely is. Although overconfidence bias always leads to a lower expected profit for a centralized channel, we find that overconfidence can in fact enhance the performance of a decentralized channel comprising one...
Paper Details
Title
Overconfident Distribution Channels
Published Date
Jun 1, 2019
Volume
28
Issue
6
Pages
1347 - 1365
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