Juliana Osmani
University “Aleksandër Moisiu” of Durrës, Faculty of Business, Management Department; Address: L.9, Rr: “AleksandërGoga”, P. 979/2, Durrës, Albania
The overconfidence of the decision maker is necessary to achieve good results and could inspire in others a sense of trust, but overconfidence can become an obstacle to decision-making process. So, it can create problems for the organization as for example can damage the organization value, can lead to the loss of competitive advantages, reduction of the market share and incomes, weak tendency to innovation, too slow responses to changes, inaccurate risk evaluation, increased risk to bankruptcy etc. If overconfidence is accompanied by excessive optimism, it may become even more dangerous because the decision maker is confident that his abilities are better than those of others, but he is also convinced that the future will be favorable. Decisions taken under these conditions can have bad consequences, both in the economic and non-material aspect.
The main goal of the research is to understand if there is a correlation between overconfidence and age. 210 managers have participated in the study. The intention is to identify variables and elements and to discover possible relationships between them, so as to be able to define some general reflections about the age impact on overconfidence. Starting from previous studies, which show a decline of cognitive and decisional abilities as age advances, it has been hypothesized that the correlation between age and overconfidence is negative. The processing and analysis of the collected data indicate that there is no correlation between these two variables. Thus, overconfidence is independent of age.
Key words
decision-making, age, overconfidence, cognitive abilities, decision-making skills
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