IGL Trials Database

IGL curates a database with randomised controlled trials in the field of innovation, entrepreneurship and growth. Browse our list of topics, see it as a map, or use the search function below.

Camerer, C. and Lovallo, D.

In the context of a lab experiment intended to mimick market entry decisions, overconfidence leads to the neglect of the quality of competition. When post-entry payoffs are based on individual abilities, individuals tend to overestimate their chances of relative success and enter more frequently. Surprisingly, overconfidence is even stronger when individuals' self-select into the experimental sessions knowing their success will depend partly on their skill.