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Debiasing illusion of control in individual judgment: the role of internal and external advice seeking

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  • Philip Meissner
  • Torsten Wulf

Abstract

This paper builds on behavioral strategy and strategic decision making literatures to propose a stronger integration of information acquisition behaviors in debiasing research. We argue that the advice-seeking behavior of executives—as their dominant way of information acquisition—may have a fundamental effect on cognitive biases in individual judgment. Empirical results of a vignette-based survey of 186 top executives in German SMEs support this claim. We posit that internal and external advice affect individual judgment differently and that external advice, in particular, is likely to be effective for debiasing. These results suggest new avenues for debiasing research that go beyond the active intervention techniques that have been the focus of debiasing research thus far. Copyright Springer-Verlag Berlin Heidelberg 2016

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  • Philip Meissner & Torsten Wulf, 2016. "Debiasing illusion of control in individual judgment: the role of internal and external advice seeking," Review of Managerial Science, Springer, vol. 10(2), pages 245-263, March.
    • Handle: RePEc:spr:rvmgts:v:10:y:2016:i:2:p:245-263
    DOI: 10.1007/s11846-014-0144-6
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    2. Arno Nuijten & Nick Benschop & Antoinette Rijsenbilt & Kristinka Wilmink, 2020. "Cognitive Biases in Critical Decisions Facing SME Entrepreneurs: An External Accountants’ Perspective," Administrative Sciences, MDPI, vol. 10(4), pages 1-23, November.
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    5. Rika Dwi Ayu Parmitasari & Alim Syariati & Sumarlin, 2022. "Chain Reaction of Behavioral Bias and Risky Investment Decision in Indonesian Nascent Investors," Risks, MDPI, vol. 10(8), pages 1-15, July.

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