Victor Niederhoffer and Laurel Kenner discuss the power overconfidence has in creating the downfall of many powerful companies. Referencing former powerhouses such as Enron, the two authors explain to the reader how excessive displays of pride actually indicate that a company is setting itself up for failure. While this theory may seem a little extravagant and difficult to prove in the modern era, the article explains its reasoning by pointing out that being featured on a magazine cover such as Forbes Magazine has proven detrimental to CEO's in the time following it. While this may not relate exactly to business, I have also noticed that sports stars that appear on magazines such as Sport's Illustrated suffer a drop in performance after the release. While some call it a curse, I think that inflating an athlete's ego only brings that superstar higher up for a fall, since it is difficult to meet major expectations placed in front of them by the media.
This relates directly to many famous Greek Tragedies, as a favorite theme during that time period was the fall from grace of the most powerful of rulers. Similar to the story of Oedipus, power blinds the owners of major companies and gives them the false hope that they will be able to continue their outlandish returns in the future. Even though failure of these companies cannot be entirely contributed to pride, feeling invincible frequently sets up individuals for a stumble, a classic form of tragedy.
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