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.
decision-making, age, overconfidence, cognitive abilities, decision-making skills
 Mariani M. (2009), Decidere e negoziare, Il Sole 24 ORE, Milano
 Bazerman M.H., Moore D.A. (2009), Judgment in managerial decision making, 7th edition, New York: John Wiley & Sons, Inc.
 Rosenberg M. (1965), Society and the adolescent self-image, Princeton, NY: Princeton University Press
 Devolder P.A. (1993), Adult age differences in monitoring of practical problem-solving performance. In Hershey D.A., Wilson J.A. (1997), op. cit.
 Pliske R.M., Mutter S.A. (1996), Age differences in the accuracy of confidence judgments. In Rolison J.J., Hanoch Y., Wood S. (2012), Risky decision making in younger and older adults: The role of learning, Psychology and Aging, Vol. 27, No. 1, pp. 129-140
 Crawford J., Stankov L. (1996), Age differences in the realism of confidence judgments: A calibration study using tests of fluid and crystallized intelligence, Learning and Individual Differences, Vol. 6, pp. 84-103
 Hershey D.A., Wilson J.A. (1997), Age differences in performance awareness on a complex financial decision-making task, Experimental Aging Research, Vol. 23, pp. 257-273
 Mienaltowski A. (2011), Everyday problem solving across the adult life span: solution diversity and efficacy, Annals of the New York Academy Sciences, Vol. 1235, pp. 75-85
 Finucane M.L., Gullion C.M. (2010), Developing a tool for measuring the decision making competence of older adults, Psychology and Aging, Vol. 25, No. 2, pp. 271-288
 Berg C.A., Meegan S., Klaczynski P.A. (1999), Age and experiential differences in strategy generation and information requests for solving everyday problems, International Journal of Behavioral Development, Vol. 23, pp. 615-639
 Payne J.W., Bettman J.R., Schkade D.A. (1999), Measuring constructed preferences: Towards a building code, Journal of Risk and Uncertainty, Vol. 19, pp. 243-270
 Healey M.K., Hasher L. (2009), Limitations to the deficit attenuation hypothesis: Aging and decision making, Journal of Consumer Psychology, Vol. 19, No. 1, pp. 17-22
 Reed A.E., Mikels J.A., Simon K.I. (2009), Older adults prefer less choice than young adults, Psychology and Aging, Vol. 23, No. 3, pp. 671-675
 Riggle E.D.E., Johnson M.M.S. (1996), Age differences in political decision making: Strategies for evaluating political candidates, Political Behavior, Vol. 18, No. 1, pp. 99-118
 Mather M. (2006), A review of decision making processes: Weighing the risks and benefits of aging. In Carstensen L.L., Hartel C.R. (Eds.), When I’m 64, pp. 145–173, Washington, DC: National Academies Press
 Henninger D.E., Madden D.J., Huettel S.A. (2010), Processing speed and memory mediate age related differences in decision making, Psychology and Aging, Vol. 25, No. 2, pp. 262-270
 Wood S., Busemeyer J., Koling A., Cox C.R., Davis H. (2005), Older adults as adaptive decision makers: Evidence from the Iowa Gambling Task, Psychology and Aging, Vol. 20, pp. 220-225
 Glück J., Bluck S. (2011), Laypeople’s conceptions of wisdom and its development: Cognitive and integrative views, The Journals of Gerontology, Vol. 66, No. 3, pp. 321-324
 Artistico D., Cervone D., Pezzuti L. (2003), Perceived self-efficacy and everyday problem solving among young and older adults, Psychology and Aging, Vol. 18, No. 1, pp. 68-79
 Thornton W.J.L., Dumke H. (2005), Everyday problem solving and decision making in aging: a meta-analytic review, Psychology and aging, Vol. 20, No. 1, pp. 85-99
 Patrick J.M.H. (1995), Aging and expertise effects on decision making processes and outcomes. In Thornton W.J.L., Dumke H.A. (2005), op. cit.
 Morrow D.G., Menard W.E., Stine-Morrow E.A., Teller T., Bryant D. (2001), The influence of expertise and task factors on age differences in pilot communication, Psychology and Aging, Vol. 16, pp. 31-46
 Hertwig R., Barron G., Weber E.U., Erev I. (2004), Decisions from experience and the effect of rare events in risky choice, Psychological Science, Vol. 15, No. 8, pp. 534-539
 Cervone D., Artistico D., Berry J. (2006), Self-efficacy processes in adult development. In Hoare C.H. (Eds.), The Oxford handbook of adult development and learning, pp. 167-195, Oxford University Press