Overconfidence And Preferences For Competition
We study whether and when preferences for competition are a positive economic trait among high-earners and to what extent this trait can explain the gender gap in income among MBAs. Consistent with the experimental evidence, preferences for competition are a positive economic trait only for non-overconfident individuals. Preferences for competition correlate with income only at graduation when bonuses are guaranteed and not a function of performance. Overconfident, competition loving MBAs have lower compensation and income growth, and experience greater exit from high-reward industries and more frequent job interruptions. Preferences for competition do not explain the gender pay gap among MBAs.
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Copy CitationErnesto Reuben, Paola Sapienza, and Luigi Zingales, "Overconfidence And Preferences For Competition," NBER Working Paper 21695 (2015), https://doi.org/10.3386/w21695.
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Published Versions
ERNESTO REUBEN & PAOLA SAPIENZA & LUIGI ZINGALES, 2024. "Overconfidence and Preferences for Competition," The Journal of Finance, vol 79(2), pages 1087-1121. citation courtesy of