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- W2367210590 abstract "This paper examines the effects of overconfidence on employees' contract selection decisions when they are not completely recognizing their performance capability for job-related skills with improved Hyatt Tayor's study paradigm.We perform a five segments role-playing controlled experiment with 45 undergraduates of different principal backgrounds recruited freely and adopt number multiplications as work task to test our results.The results show that individuals with incomplete personal capability cognitions tend to be quite overconfident about their performance abilities and such overconfidence will make them incorrectly select a performance-based contract when they should have selected a fixed-pay contract,which results in lower earnings.Considering the costs on turnover,although the switch behaviors are not significant between the individuals with different cognition levels on performance capability for job-related skills,once individuals with incomplete personal capability cognitions learn their actual performance capability,they will be more likely to switch performance-based contracts into fix-pay contracts in a subsequent period than participants who know their performance capability in the initial contract selection.The paper also discusses the implications of these findings,such as some application value for employers to reduce the costs of hiring or employees to choose the best contracts." @default.
- W2367210590 created "2016-06-24" @default.
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- W2367210590 date "2010-01-01" @default.
- W2367210590 modified "2023-09-24" @default.
- W2367210590 title "An Experiment Study on the Effects of Overconfidence on Employment Contract Selection" @default.
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