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Self-Confidence and Teamwork : An Experimental Test

Author

Listed:
  • Isabelle Vialle

    (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France)

  • Luis Santos-Pinto

    (Faculty of Business and Economics, University of Lausanne, Internef 535, CH-1015, Lausanne, Switzerland)

  • Jean-Louis Rullière

    (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France)

Abstract

We use a laboratory experiment to study how perceptions of skill influence teamwork. Our design is based on Gervais and Goldstein (2007) theory of teams. Team output is increasing in skill and in effort, skill and effort are complements, and workers’ effort choices are complements. An overconfident agent thinks that his skill is higher than it actually is. We find that the presence of overconfi-dent workers in teams is beneficial for firms since it raises effort provision and team output. We also find that overconfidence leads to a Pareto improvement in workers’ payoffs. In contrast, underconfidence is detrimental to firms as well as workers.

Suggested Citation

  • Isabelle Vialle & Luis Santos-Pinto & Jean-Louis Rullière, 2011. "Self-Confidence and Teamwork : An Experimental Test," Working Papers 1126, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:1126
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    Cited by:

    1. Alice Soldà & Changxia Ke & Lionel Page & William von Hippel, 2019. "Strategically delusional," Working Papers 1908, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    2. Adrian Bruhin & Fidel Petros & Luís Santos-Pinto, 2024. "The role of self-confidence in teamwork: experimental evidence," Experimental Economics, Springer;Economic Science Association, vol. 27(3), pages 687-712, July.
    3. Hendrik Hakenes & Svetlana Katolnik, 2018. "Optimal Team Size and Overconfidence," Group Decision and Negotiation, Springer, vol. 27(4), pages 665-687, August.
    4. Gary Charness & Aldo Rustichini & Jeroen Ven, 2018. "Self-confidence and strategic behavior," Experimental Economics, Springer;Economic Science Association, vol. 21(1), pages 72-98, March.
    5. Alice Soldà & Changxia Ke & Lionel Page & William von Hippel, 2020. "Strategically delusional," Experimental Economics, Springer;Economic Science Association, vol. 23(3), pages 604-631, September.
    6. Gary Charness & Aldo Rustichini & Jeroen van de Ven, 2011. "Self-Confidence and Strategic Deterrence," Tinbergen Institute Discussion Papers 11-151/1, Tinbergen Institute.

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    More about this item

    Keywords

    Teamwork; Self-Confidence; Laboratory Experiment;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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