What are the risks of over-investment? | 3 Answers from Research papers (2024)

The risk of over-investment is that low-cost agents can increase the value of their outside option and shift rent away from high-cost investors.

The risks of over-investment in digital entrepreneurial ecosystems include financial instability and potential failure of startups.

Overconfident investors are more likely to make risky choices, which could erode investor returns.

What are the risks of over-investment? | 3 Answers from Research papers (2024)
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