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The purpose of this study is to address why managers enter the excessive market. A comparison of the facts and perceptions of entrants relative to success in the market shows that many entrants are confident about the viability of their businesses and enter the market. Accordingly, the authors simulate market entry decisions to detect behavioral biases.

The authors adapted the entry decisions simulation method, which is supported by the theoretical foundations of signal detection theory (SDT) and signaling theory. The simulation model is implemented on the Anaconda platform and written in Python 3.

The results of this study suggest that overestimation relates to excess market entry. Also, the proportion of excess entry under difficult conditions is always higher than under easy conditions.

This research helps managers and firms think about their and their competitors' abilities and evaluate them before entering the market. Policymakers and practitioners can also design programs such as experiential learning to help entrants assess their skills.

So far, no research has investigated the role of overconfidence under different market conditions. Accordingly, this study contributes to the current market entry literature by disentangling the debate between absolute and relative confidence and by considering the role of task difficulty.

In this study, it is investigated whether narcissistic tendencies can predict financial literacy overconfidence.

Financial literacy overconfidence is analyzed under these three subcategories: overestimation, overplacement and overprecision, according to individual's self-perception of his/her own financial literacy. In order to evaluate narcissistic tendencies, the Turkish version of the Structured Clinical Interview for the Diagnostic and Statistical Manual of Mental Disorders Axis II (SCID II) Fourth Edition (DSM-IV) is used. To measure the financial literacy overestimation, overplacement and overprecision biases, a multistaged measurement process designed specially on basic and advanced financial literacy is implemented.

The current study provides strong evidence that narcissistic tendencies are predictors of financial literacy overestimation, overplacement and overprecision biases. These tendencies in men are greater than in women. Evaluated risk factors of being exposed to these biases among people who have narcissistic tendencies are found to be greater than among people who do not have those tendencies. Due to a particular exposure of narcissistic tendencies, the probability of financial literacy overprecision bias has the highest rate among the others, and it is followed by overestimation and overplacement bias.

This is the first study that measures overconfidence under three subcategories of overestimation, overplacement and overprecision, according to financial literacy. For this reason, it is believed that these results provide valuable evidence in favor of the relation between overconfidence in finance and narcissistic tendencies.

In marketing, most research on intention–behavior consistency (IBC) is dedicated to improving the predictive ability of stated intentions for future behaviors, with relatively less exploration into the precursors of IBC, especially those linked to regular durable goods void of ethical consumption characteristics. This study aims to focus on the antecedents of IBC for such products, specifically examining category-level and product-level IBC in light of consumer knowledge.

The authors conducted a two-round survey to collect 3,560 Chinese consumers' vehicle purchase intentions and behaviors. The authors have also leveraged a large vehicle database (containing detailed vehicle attribute information) to measure consumer product knowledge (i.e. product judgment accuracy). A trivariate probit model was proposed to account for the potential selection bias arising from sample attrition while examining the effects of consumer knowledge on category- and product-level intention-behavior consistency.

Findings reveal that 47% of the participants displayed category-level IBC, and within this group, a further 39% exhibited product-level IBC. Notably, product knowledge, manifested as accurate product judgment, correlates negatively with category-level IBC but positively with product-level IBC. Intriguingly, the negative association between inaccurate judgment and product-level IBC is less pronounced for consumers overestimating the target product than for those underestimating it. Furthermore, consumers with direct experience are less prone to show category-level IBC, but are more inclined to display product-level IBC.

Vehicle marketers should prioritize consumers who show interest in their products but possess inaccurate knowledge, to retain whom companies can nurture their product knowledge. As for consumers with accurate knowledge, companies should try to expedite their purchase. Vehicle marketers also need to devise suitable advertising strategies to prevent consumers from undervaluing their products. For those overestimating competitors' products, companies can provide information to correct their overestimation and draw attention to possible confirmation biases. Vehicle marketers should encourage potential buyers who have shown interest in their product to participate in test-drive events, exhibitions, and other direct experience opportunities. Yet, for consumers still in the “whether-to-buy” decision-making phase, companies should not rush them into a test drive.

In the policy-making realm, governmental administrators can implement extensive consumer education programs, with a focus on the importance of product knowledge. This may involve providing consumers with accurate information and buying guides through various channels, which can help consumers make informed purchase decisions. Moreover, to foster healthy competition among vehicle companies, governmental administrators can establish regulations that require vehicle companies and other relevant industries to provide accurate and transparent product information, including performance, safety, and environmental aspects. Finally, in order to protect consumer rights, governmental administrators can also strengthen regulations to ensure fair treatment and safeguards for consumers throughout the purchasing process. This includes cracking down on false advertising and fraudulent practices, maintaining market order, and enhancing consumer confidence and purchase consistency.

This study is among the first attempts to examine the relationship between consumer knowledge and intention-behavior consistency, especially for regular durable products void of ethical consumption characteristics. Responding to the call of previous literature (e.g. Morwitz, 1997), the authors distinguish between and examine two forms of intention-behavior consistency simultaneously (using a sample selection model) and obtain more reliable conclusions. Moreover, the study's large-scale two-round survey had obtained individual-level purchase behavioral outcomes, which allowed the authors to measure each consumer's IBC at both category and product levels. More importantly, the authors show the opposite effects of consumer knowledge on the two forms of intention-behavior consistency.

Decision-making biases play substantial roles in entrepreneurs' decisions and the fate of entrepreneurial enterprises, as well. Previous studies have assumed all entrepreneurs are homogeneous in their proneness to biases, therefore inadvertently creating a crucial research gap by ignoring the role of business experience in the genesis of biases. Furthermore, there is a lack of research on women entrepreneurs' decision-making biases. Thus, this paper's main objective is to explore two influential biases of overconfidence and over-optimism in novice and habitual women entrepreneurs.

The data for this study were collected by conducting semi-structured interviews with 21 Iranian novice and habitual women entrepreneurs active in four high-tech sectors of biotech, nanotech, aerospace and advanced medicine. The gathered data were analyzed by thematic analysis.

According to the findings, while habitual entrepreneurs are prone to all three types of overconfidence (overestimation, overplacement and overprecision) and over-optimism, novice entrepreneurs do not show any signs of overplacement or overprecision.

There are certain valuable implications resulting from this study that could be of use for not only future researchers in the field of entrepreneurial decision-making and women entrepreneurship but also for women entrepreneurs running entrepreneurial enterprises, especially small businesses.

This paper offers certain novel contributions to the field of entrepreneurship by not only exploring biases in women entrepreneurs exclusively but also scrutinizing biases in novice (first-time) and habitual (experienced) entrepreneurs comparatively.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Habitual entrepreneurs are prone to all three types of overconfidence (overestimation, overplacement and overprecision) and to overoptimism. Novice entrepreneurs are prone to one type of overconfidence (overestimation) and to overoptimism.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The purpose of this paper is to investigate what factors influence the gap between caller's perception of how long they think they waited and how long they actually waited on hold and to determine what call managers can do to reduce this gap called estimation error.

A field experiment was conducted with a corporation's call center.

The findings were: the higher the estimation error of callers, the less satisfied they are; music increases estimation error, unless callers can choose the music; waiting information reduces estimation error; callers with urgent issues have more estimation error and they overestimate more; and females have higher estimation error and they overestimate more than males.

Limitations are one call center in one context. Implications are identification of antecedents of overestimation.

The paper provides guidelines for call center managers for reducing estimation error and increasing caller satisfaction. It discusses the need for understanding callers and measuring items that are important to them.

The study investigates an under researched variable called estimation error. Study also provides information about some of the causes for why consumers overestimate or underestimate their waiting time. Study provides guidelines from an actual call center and discusses variables that managers can easily use to decrease estimation error and overestimation.

The purpose of this study is to investigate cross‐cultural differences between American and Japanese college students' body type under/overestimation regarding their own bodies within the framework of self‐construal theory.

Information from 137 American college students and 160 Japanese college students was collected in using a survey method. Their height, body weight, gender, and self‐estimated body types from three different options (underweight, normal weight, and overweight) was collected in order to assess the relationship between self‐estimated and real body types of these participants. The real body type based on one's body mass index and the self‐estimated body type were compared for each participant.

Japanese students were found to be more in the underweight category and less in the overweight category than American students. It was also found that Japanese students, and female students in general, were more likely to overestimate their body types and American students, and male students in general, were more likely to underestimate their body types.

The present study used self‐report survey method and should be considered a pilot study. In future research, the height and weight of participants should actually be measured to obtain more reliable data. Future research should investigate other possible psychological factors for creating different body types between different cultures.

The present study was the first cross‐cultural study regarding body type under/overestimation regarding their own bodies between American and Japanese college students.

The relationships between moral leadership, transformational, transactional, and laissez‐faire leaderships, and certain outcomes were studied using a sample of 116 managers of a large manufacturing organization in eastern India. Results reveal that transformational leadership partially mediates moral leadership’s relationship with follower’s extra effort and satisfaction, and leader’s effectiveness, and it fully mediates moral leadership’s relationship with leader’s power. Based on whether leader’s self‐rating was more than, same as, or less than follower’s rating of leader’s transformational leadership, leader‐follower dyads were classified into three categories – overestimation, agreement, and underestimation. Findings show that moral leadership is lower in overestimation than in agreement, and is lower in agreement than in underestimation. Correlation between moral leadership and power is also the highest in the case of underestimation. Leader’s power, however, does not differ across categories.

This paper examines the role of state-imposed fund balance limitation on school district budgetary behavior in New York State between 1997 and 2004. The findings suggest that imperfect state limitations may lead to imperfect results. Compliance among New York state school districts with the two percent limit in the examined period is low. While the constraint does not limit unreserved unappropriated fund balances to two percent, it does influence the way districts form estimates of revenues and expenditures. Recent changes in the limitation (to four percent) do not fully address the flaws of the original rule (lax enforcement, applied on the budgeted level, and generous rules on reserves), thus no significant change in budget behavior is expected.

Fuzzy numbers are often used to represent non-probabilistic uncertainty in engineering, decision-making and control system applications. In these applications, fuzzy arithmetic operations are frequently used for solving mathematical equations that contain fuzzy numbers. There are two approaches proposed in the literature for implementing fuzzy arithmetic operations: the α-cut approach and the extension principle approach using different t-norms. Computational methods for the implementation of fuzzy arithmetic operations in different applications are also proposed in the literature; these methods are usually developed for specific types of fuzzy numbers. This chapter discusses existing methods for implementing fuzzy arithmetic on triangular fuzzy numbers using both the α-cut approach and the extension principle approach using the min and drastic product t-norms. This chapter also presents novel computational methods for the implementation of fuzzy arithmetic on triangular fuzzy numbers using algebraic product and bounded difference t-norms. The applicability of the α-cut approach is limited because it tends to overestimate uncertainty, and the extension principle approach using the drastic product t-norm produces fuzzy numbers that are highly sensitive to changes in the input fuzzy numbers. The novel computational methods proposed in this chapter for implementing fuzzy arithmetic using algebraic product and bounded difference t-norms contribute to a more effective use of fuzzy arithmetic in construction applications. This chapter also presents an example of the application of fuzzy arithmetic operations to a construction problem. In addition, it discusses the effects of using different approaches for implementing fuzzy arithmetic operations in solving practical construction problems.