Unrealistic Optimism: Still a Neglected Trait

Coelho, Marta Pereira

doi:10.1007/s10869-009-9146-9

Cited by 45 publications

(46 citation statements)

References 42 publications

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“…Second, entrepreneurs are inherently influenced by psychologically, cognitively or socially irrational factors e.g., [36], despite the rational factors such as managerial experience tested here. Future studies are encouraged to propose and examine more of such factors in affecting the entrepreneurial knowledge and capability development.…”

Section: Discussionmentioning

confidence: 86%

Business Area Changes and Entrepreneurial Persistence in Ecology- and Food-Related Industries: Knowledge Heterogeneity and Emotion Perspectives

2018

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Entrepreneurs' changes to different business areas can be viewed as shifts in entrepreneurial knowledge domains (e.g., from restaurant to food waste processing firm as an ecological helping business). From a sample of 73 representative entrepreneurs, we present a study of the impact of such area changes on the persistence of entrepreneurship (i.e., the degree an entrepreneur remains in entrepreneurial activities). Furthermore, two mediators, managerial experience and insecurity, and two moderators, positive and negative affect, were proposed and examined to make a more comprehensive theoretical inference of the relationship between area difference and persistence. The results revealed that, counter-intuitively, area difference was significantly and positively associated with entrepreneurial persistence. The mediation effects of managerial experience and psychological insecurity were also confirmed. However, only the moderation of positive affect was effective. Based on the knowledge heterogeneity and entrepreneurial emotion perspectives, academic and practical implications for inter-temporal dynamics of entrepreneurship are discussed.

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Section: Discussionmentioning

confidence: 86%

Business Area Changes and Entrepreneurial Persistence in Ecology- and Food-Related Industries: Knowledge Heterogeneity and Emotion Perspectives

2018

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“…() suggest, optimism in itself may serve to slow entrepreneurial exits, despite the associated disappointment with entrepreneurial returns. Specifically, optimism has been linked with higher motivation, greater persistence at tasks and a tendency to reframe negative situations, all of which may lead to optimistic entrepreneurs persisting in businesses too long when withdrawal would be wiser (Coelho, ). This, again, is a further source of resource misallocation.…”

Section: Resultsmentioning

confidence: 99%

Financial Optimism and Entrepreneurial Satisfaction

Dawson

2017

Strategic Entrepreneurship

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Research summary:Adding to the literature that optimists are attracted to entrepreneurship, this article finds that prior financial optimism has detrimental consequences for entrepreneurial pay satisfaction. Optimists overestimate the likelihood of positive events and will, therefore, tend to overestimate their prospects in entrepreneurship. It follows that conditional on realized entrepreneurial performance, optimists' subsequent pay satisfaction is lower through disappointment. These findings are consistent with theories of self-discrepancy from social psychology. Evidence is also provided that optimism reduces employee pay satisfaction, but since self-employment widens the scope for prospects to be exaggerated, the effects are stronger in self-employment. While selection on optimism implies that entry into entrepreneurship is likely to be excessive, optimism by reducing entrepreneurial pay satisfaction may increase entrepreneurial exits. Managerial summary:This article examines how prior financial optimism affects entrepreneurial pay satisfaction. Optimists have a generalized tendency to overestimate the likelihood of positive events and will, therefore, tend to overestimate their prospects in self-employment. The results suggest that prior financial optimism reduces entrepreneurial pay satisfaction through disappointment. The same is true for employee pay satisfaction, but since entrepreneurship is typically a more uncertain and turbulent environment, making prospects harder to evaluate, the effects are found to be stronger in self-employment.

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“…life optimism implies an error in judgment " which Weinstein called unrealistic optimism or optimistic bias. 4 Taylor and Brown de ned unrealistic optimism as part of a pattern of the so-called positive illusions that help us cope with potentially threatening experiences. Although, people are usually unrealistically optimistic, and this is not always the case.…”

Section: Introductionmentioning

confidence: 99%

Impact of unrealistic optimism on the risk of contamination during the home confinement of COVID-19 in Algeria

Boutebal

Yahi

Madani

2020

Preprint

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Objective: The study was conducted to investigate the impact of unrealistic optimism on the risk of contamination at home confinement and its association with certain social variables.Methods: This survey study was conducted to describe the level of unrealistic optimism and its association with some social variables. The participants (n = 558, 60.6% females and 39.4 males) subjectively evaluated the risk of their coronavirus infection in the period 1-15 May 2020, for this purpose a questionnaire was adopted and administered to a sample of 558 citizens. Results: the results showed that 69.2% of the participants confirmed their respect always, and 38.7% confirmed that they rarely wear the mask, while 24% of the sample confirmed that they only sometimes wear the mask when they leave the house, including 50.5% of the sample confirmed that people infected with the coronavirus suffer from social stigmatization. It is found that 54.8% of the respondents had an average level of unrealistic optimism, where the mean of participants was (36, 17 ± 5, 97). The study also revealed that there is an association between the levels of unrealistic optimism and respect the home confinement (P = 0.001); whereas, the results showed that there is no association between the levels of unrealistic optimism and wearing the mask (P = 0.183). The study discovered there is significantly a negative association (B = -, 119, P = 0.005) between unrealistic optimism and the age of Algerian citizens during the home confinement of coronavirus. Otherwise, while the results did not show any statistically significant differences in unrealistic optimism between groups of gender among Algerian citizens during the home confinement of coronavirus (P = 0, 0835).Conclusions: In effect, unrealistic optimism is linked to avoiding risky behaviors that threaten human life as it is the case with the coronavirus. Therefore, it is important to reduce the levels of unrealistic optimism of individuals with beliefs and objective information to avoid dangerous behavior during and after the confinement period.

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Unrealistic Optimism: Still a Neglected Trait

Cited by 45 publications

References 42 publications

Business Area Changes and Entrepreneurial Persistence in Ecology- and Food-Related Industries: Knowledge Heterogeneity and Emotion Perspectives

Business Area Changes and Entrepreneurial Persistence in Ecology- and Food-Related Industries: Knowledge Heterogeneity and Emotion Perspectives

Financial Optimism and Entrepreneurial Satisfaction

Impact of unrealistic optimism on the risk of contamination during the home confinement of COVID-19 in Algeria

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