Overconfidence and conflict
Abstract
This paper studies the causes and duration of conflicts with a war of attrition game featuring overconfident players. We find that overconfidence is neither necessary, nor sufficient to have conflict. Overconfident decision makers are nevertheless more likely to initiate conflict, and to also remain active longer in a conflict. Our main results are that (i) the degree of overconfidence and conflict duration may have an inverted U‐shaped...
Paper Details
Title
Overconfidence and conflict
Published Date
May 31, 2021
Journal
Volume
59
Issue
4
Pages
1483 - 1499
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