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The dark side of online deals, why cockiness is advantageous and more in this week's news

11:12am, September 19, 2011

Have I got a deal for you
Daily deal sites such as Groupon and LivingSocial boost sales and revenue for participating merchants, but the reputations of the businesses may take a hit. Reviews on Yelp that refer to daily deals are more negative, lowering merchant ratings for months after a daily deal offer, an analysis of more than 56,000 Groupon reviews reveals. The new work, reported by Boston University and Harvard researchers September 7 on, suggests that the ultimate economic effects of daily deals for the merchant aren’t clear. —Rachel Ehrenberg

The bright side of overconfidence
Unrealistic beliefs in one’s ability to win out over others have an upside. Overconfidence boosts individual success in competitive games, as long as desired objects provide big enough benefits to offset the costs of competing for them, say political scientists Dominic Johnson of the University of Edinburgh in

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