By chance or by choice? Biased attribution of others’ outcomes when social preferences matter

Decision makers in positions of power often make unobserved choices under risk and uncertainty. In many cases, they face a trade-off between maximizing their own payoff and those of other individuals. What inferences are made in such instances about their choices when only outcomes are observable? W...

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Bibliographic Details
Published in:Experimental economics : a journal of the Economic Science Association 2022-04, Vol.25 (2), p.413-443
Main Authors: Erkal, Nisvan, Gangadharan, Lata, Koh, Boon Han
Format: Article
Language:English
Subjects:
Asymmetry
Attribution
Behavioral/Experimental Economics
Bias
Chance
Decision makers
Decision making
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Experiments
Game Theory
Leadership
Microeconomics
Operations Research/Decision Theory
Original Paper
Prosocial behavior
Social and Behav. Sciences
Social responsibility
Uncertainty
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Summary:Decision makers in positions of power often make unobserved choices under risk and uncertainty. In many cases, they face a trade-off between maximizing their own payoff and those of other individuals. What inferences are made in such instances about their choices when only outcomes are observable? We conduct two experiments that investigate whether outcomes are attributed to luck or choices. Decision makers choose between two investment options, where the more costly option has a higher chance of delivering a good outcome (that is, a higher payoff) for the group. We show that attribution biases exist in the evaluation of good outcomes. On average, good outcomes of decision makers are attributed more to luck as compared to bad outcomes. This asymmetry implies that decision makers get too little credit for their successes. The biases are exhibited by those individuals who make or would make the less prosocial choice for the group as decision makers, suggesting that a consensus effect may be shaping both the belief formation and updating processes.
ISSN:1386-4157
1573-6938
DOI:10.1007/s10683-021-09731-w