The Valuator’s Curse: Decision Analysis of Overvaluation and Disappointment in Acquisition

References

• Bertsimas D, Mersereau AJ (2007) A learning approach for interactive marketing to a customer segment. Oper. Res. 55(6):1120–1135.Link, Google Scholar
• Caro F, Gallien J (2007) Dynamic assortment with demand learning for seasonal consumer goods. Management Sci. 53(2):276–292.Link, Google Scholar
• Clemen RT, Reilly T (2001) Making Hard Decisions (South-Western Cengage Learning, Mason, OH).Google Scholar
• Dixit A (1992) Investment and hysteresis. J. Econom. Perspect. 6(1):107–132.Crossref, Google Scholar
• Economist, The (2019a) The entrepreneur’s new clothes. The Economist (September 28), https://www.economist.com/business/2019/09/28/wework-shows-why-some-venture-capitalists-are-in-a-world-of-make-believe.Google Scholar
• Economist, The (2019b) The wave of unicorn IPOs reveals Silicon Valley’s groupthink. The Economist (April 17), https://www.economist.com/briefing/2019/04/17/the-wave-of-unicorn-ipos-reveals-silicon-valleys-groupthink.Google Scholar
• Fisher GS (2014) History of IPOs suggests heartache follows the pop. Barrons (September 19), http://www.barrons.com/articles/SB52133021052493823286804580163941038934092Google Scholar
• Galasso A, Simcoe TS (2011) CEO overconfidence and innovation. Management Sci. 57(8):1469–1484.Link, Google Scholar
• Gladwell M (2010) The sure thing: How entrepreneurs really succeed. New Yorker (January 18), 24–29.Google Scholar
• Gompers PA, Lerner J (2003) The really long-run performance of initial public offerings: The pre-Nasdaq evidence. J. Finance 53(4):1355–1392.Crossref, Google Scholar
• Hayward MLA, Shepherd DA, Griffin D (2006) A hubris theory of entrepreneurship. Management Sci. 52(2):160–172.Link, Google Scholar
• Hogarth RM, Karelaia N (2012) Entrepreneurial success and failure: Confidence and fallible judgement. Organ. Sci. 23(6):1733–1747.Link, Google Scholar
• Holm HJ, Opper S, Nee V (2013) Entrepreneurs under uncertainty: An economic experiment in China. Management Sci. 59(7):1671–1687.Link, Google Scholar
• Knight FH (1921) Risk, Uncertainty and Profit (Houghton Mifflin, Boston).Google Scholar
• Lai TL (1987) Adaptive treatment allocation and the multi-armed bandit problem. Ann. Statist. 15(3):1091–1114.Crossref, Google Scholar
• Moore E, Bradshaw T (2019) Lex in depth: Can Snap survive? Financial Times (April 15), https://www.ft.com/content/e23a1bd6-5786-11e9-91f9-b6515a54c5b1.Google Scholar
• Ross SM (1983) Introduction to Stochastic Dynamic Programming (Academic Press, London).Google Scholar
• Smith JE, Winkler RL (2006) The optimizer’s curse: Skepticism and postdecision surprise in decision analysis. Management Sci. 52(3):311–322.Link, Google Scholar
• Thaler RH (1988) Anomalies: The winner’s curse. J. Econom. Perspect. 2(1):191–202.Crossref, Google Scholar
• Tong J, Feiler D, Ivantsova A (2018) Good choice, bad judgment: How choice under uncertainty generates overoptimism. Psych. Sci. 29(2):254–265.Crossref, Google Scholar
• Tormala ZL, Jia J, Norton MI (2012) The preference for potential. J. Personality Soc. Psych. 103(4):567–583.Crossref, Google Scholar