Caltech Home > HSS Home > Research > Social Sciences Research > Working Papers > The Hubris Hypothesis: Emperical Evidence
open search form

The Hubris Hypothesis: Emperical Evidence

Paper Number: 1390
Creation Date: 07/10/2014

The Hubris Hypothesis is grounded on a failure to adequately account for the winner's curse, which leads to overbidding.  Surprisingly, few papers have attempted to develop a direct empirical test of the presence of overbidding of M&A contests.  We develop two such tests in this paper.  Our results strongly support the existence of overbidding.


Paper Length: 49 pages
Paper: SSWP_1390.pdf