Self-Confidence and Teamwork: An Experimental Test

Gate Working Paper No. 1126

55 Pages Posted: 14 Oct 2011

See all articles by Isabelle Vialle

Isabelle Vialle

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Luís Santos-Pinto

University of Lausanne

Jean-Louis Rulliere

University of Claude Bernard Lyon 1 - Institute of Finance and Insurance Science (ISFA)

Date Written: September 2011

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 overconfident 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.

Keywords: teamwork, self-confi dence, laboratory experiment

JEL Classification: D81, C91

Suggested Citation

Vialle, Isabelle and Santos-Pinto, Luis P. and Rulliere, Jean-Louis, Self-Confidence and Teamwork: An Experimental Test (September 2011). Gate Working Paper No. 1126. Available at SSRN: https://ssrn.com/abstract=1943453 or http://dx.doi.org/10.2139/ssrn.1943453

Isabelle Vialle (Contact Author)

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

Luis P. Santos-Pinto

University of Lausanne ( email )

Quartier Chambronne
Lausanne, Vaud CH-1015
Switzerland

Jean-Louis Rulliere

University of Claude Bernard Lyon 1 - Institute of Finance and Insurance Science (ISFA) ( email )

50, Avenue Tony Garnier
Lyon Cedex 07, 69366
France
+33 670 43 60 87 (Phone)

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