Impact of positive illusions and experience on decision to invest in own new venture

Objectives. The objective of this study is threefold: 1) to examine the effect of positive illusions on risk taking manifested in opportunity evaluation and investment decision; 2) to examine the mediating role of risk attitudes on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision; 3) to examine the moderating effect of experience on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Sample and setting. Research sample comprised 132 entrepreneurs aged between 19 and 63 (M = 40.6; SD = 10.8) owning small, medium, and large-sized businesses. Hypotheses. 1) Individuals exhibiting higher positive illusions (overconfidence, unrealistic optimism, illusion of control) would take higher risk manifested in opportunity evaluation and investment decision. 2) Risk attitudes will mediate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. 3) Experience will moderate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Statistical analysis and results. 1) Using simple linear regression it was found that only unrealistic optimism for rare positive events and illusion of control predicted risk taking manifested in investment decision. None of positive illusions explained opportunity evaluation. 2) Using PROCESS macro for mediation analysis it was found that domain-specific risk perception, rather than general risk tolerance, is statistically significant mediator of the relationship between unrealistic optimism for rare positive events and investment decision. 3) Moderation analysis via PROCESS macro showed that only entrepreneurial experience moderates the relationship between unrealistic optimism for rare positive events and investment decision using own savings. The limitations concerning gender and domain specificity of methods are discussed in the study.

Impact of positive illusions and experience on decision to invest in own new venture

Objectives. The objective of this study is threefold: 1) to examine the effect of positive illusions on risk taking manifested in opportunity evaluation and investment decision; 2) to examine the mediating role of risk attitudes on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision; 3) to examine the moderating effect of experience on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Sample and setting. Research sample comprised 132 entrepreneurs aged between 19 and 63 (M = 40.6; SD = 10.8) owning small, medium, and large-sized businesses. Hypotheses. 1) Individuals exhibiting higher positive illusions (overconfidence, unrealistic optimism, illusion of control) would take higher risk manifested in opportunity evaluation and investment decision. 2) Risk attitudes will mediate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. 3) Experience will moderate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Statistical analysis and results. 1) Using simple linear regression it was found that only unrealistic optimism for rare positive events and illusion of control predicted risk taking manifested in investment decision. None of positive illusions explained opportunity evaluation. 2) Using PROCESS macro for mediation analysis it was found that domain-specific risk perception, rather than general risk tolerance, is statistically significant mediator of the relationship between unrealistic optimism for rare positive events and investment decision. 3) Moderation analysis via PROCESS macro showed that only entrepreneurial experience moderates the relationship between unrealistic optimism for rare positive events and investment decision using own savings. The limitations concerning gender and domain specificity of methods are discussed in the study.

The Influence of Self- and Partner-Enhancement, Perceptual Congruence and Personal Identity on Relational Satisfaction among Married Couples, Dating Couples and Same-Sex Roommate Dyads

This study builds on the Taylor and Brown theory of positive illusions to attain a more in-depth understanding of the relative influence of perceptual congruence and enhanced perception (positive illusions) on relational satisfaction. A sample of 812, organized into 406 subject-partner pairs of 203 married couples, 100 dating couples, and 103 same-sex roommate dyads completed questionnaires. Each subject rated him- or her-self on six personal qualities (social skills, emotional stability, agreeableness, hostility, depression, and spirituality) and four temperaments (Dominance, Influence, Supportiveness, Conscientiousness). Then they took tests that measured the same qualities to compare with the self-ratings. On another questionnaire, each partner rated the subject on the same 10 qualities. Both subjects and partners completed the Dyadic Adjustment Scale as the measure of relational satisfaction. Primary findings discovered that in most cases, positive illusions diminish relational satisfaction. The only setting in which benefit occurs is when partners rate subjects higher than subjects rate themselves. Congruence between ratings (whether subject-test, partner-test or subject-partner) is strongly associated with relational success. Findings contrast with the Taylor and Brown theory and provide a more nuanced look at the influence of enhancement or congruence.

Oι θετικές ψευδαισθήσεις για τον εαυτό και η ριψοκίνδυνη συμπεριφορά στην εφηβεία: Ανασκόπηση της βιβλιογραφίας

The objective of this study is, through the relevant literature review, to point out the associations between risk-taking behavior during adolescence and positive illusions about the self, that is imaginary audience and personal fable ideations. Positive illusions about the self and risky behavior in adolescence are usually investigated as a direct result of adolescent egocentrism. in this study we briefly describe the main theoretical approaches of positive illusions about the self. Moreover, research findings are presented on the mediating role of self-esteem in the relationship between positive illusions about the self (mainly personal fable) and risk-taking in adolescence. also, we discuss age and gender effects on the complex phenomenon of risk-taking and we focus on adaptive developmental functions of positive illusions about the self. in particular, we focus on the dual function of the personal fable ideation: the illusions of omnipotence and invulnerability either lead adolescents and young adults to risk-taking, or they contribute both to a positive self-image projection in the future and to individuals’ functional adaptation to new situations in their transition from adolescence to adulthood.

The effect of temporal landmarks on positive illusions and consumer preference for new products with functional risks

PurposeThe purpose of this research is to examine the effect of temporal landmarks on positive illusions and the downstream implications of this effect on consumer preference for new products with functional risks.Design/methodology/approachStudy 1 adopted a single factor (temporal landmarks: beginning vs ending) between-subjects design. Study 2 adopted a 2 (temporal landmarks: beginning vs. ending) × 2 (salience of the temporal landmark: salient vs not salient) between-subjects design. Study 3 used a single factor (temporal landmarks: beginning vs ending) between-subjects design.FindingsThrough three studies, we show that the ending temporal landmarks reduce positive illusions (Studies 1 and 2). The underlying process is enhanced perceptions of psychological resource depletion (Study 3). The authors further show that decreased positive illusions lead consumers to less prefer new products with functional risks (Study 3).Originality/valueExisting studies on temporal landmarks have exclusively focused on the beginning landmarks and account for its effects from a motive perspective. In contrast, the authors take a look at the ending landmarks and identify perceptions of psychological resource depletion as the underlying process, which suggests a new angel understand how temporal landmarks influence individuals' cognitions and behavior.

JOINT GOALS IN OLDER COUPLES: ASSOCIATIONS WITH GOAL PROGRESS AND RELATIONSHIP SATISFACTION

Goals often involve close others such as spouses, but we know little about how this helps or hinders goal progress and what couple consequences arise. To examine these questions, we investigate associations between joint goals, goal progress, and relationship satisfaction by applying multi-level modeling to data from 119 couples (50% female; Mage=71 years). Participants listed their most important goals and reported if they wanted to achieve these together with their partner (self-rated joint goals). 85% self-reported at least one joint goal. Two raters classified goals as “joint” if both partners mentioned the same goal. Positive illusions–i.e., older adults thinking a goal was joint although it was not reported by the spouse–were frequent. Number of joint goals was related to increased goal progress but only for those with low positive illusions, whereas positive illusions were linked to higher relationship satisfaction. We discuss theoretical and practical implications of our findings.