Abstract
People often receive feedback influenced by external factors, yet little is known about how this affects self-serving biases. Our theoretical model explores how multi-dimensional uncertainty allows additional degrees of freedom for self-serving bias. In our Primary experiment, feedback combining an individual’s ability and a teammate’s ability leads to biased belief updating. However, in a Follow-up with a random fundamental replacing the teammate, unbiased updating occurs. A Validation experiment shows belief distortion is greater when outcomes originate from human actions. Overall, our experiments highlight how multi-dimensional environments can enable self-serving biases.
Original language | English |
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Journal | Economic Journal |
Early online date | 5 Mar 2024 |
DOIs | |
Publication status | Early online - 5 Mar 2024 |
Keywords
- Motivated beliefs
- multi-dimensional
- belief updating
- overconfidence