Assignment
Consider the following fact: 80% of small businesses fail within the first three years. A friend is unaware of this fact, and wishes to quit his consulting job and open a restaurant in Los Angeles. As a good friend, you want to be sure that overconfidence is not playing a significant role in his or her decision. Compose an email to your friend to help him or her navigate the pitfalls of overconfidence. Before writing this letter you might consider the following questions:
-Why might your friend be overconfident about the success of this venture?
-What are the most important sources of overconfidence?
-Which of these sources do you believe will be most resistant to your persuasion?
Article: MANAGING OVERCONFIDENCE by J. EDWARD RUSSO and PAULJ.H.SCHOEMAKER.