Own experience bias in evaluating the efforts of others
| Autor: | Myrna Holtz Wooders, Edward Cartwright |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Actuarial science Process (engineering) 05 social sciences Inference Bayesian inference bayesian updating Test (assessment) Fundamental attribution error 0502 economics and business Benchmark (computing) false consensus 050206 economic theory 050207 economics own experience Psychology attribution error |
| Popis: | The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link. We develop a model with which to explore how an individuals own experience in the labor market may influence her assessment of the efforts of other individuals. Specifically, we consider a two stage process in which individuals first learn, through experience, whether effort is rewarded and then subsequently have to estimate the effort of others. We derive a theoretical benchmark based on rational inference and then explore how own experience may lead to systematic bias from this benchmark. Our theoretical results suggest that those who are not rewarded for high effort will underestimate the effort of other individuals while those for whom effort is rewarded will (slightly) overestimate the effort of others. We empirically test and confirm this prediction in the lab. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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