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Bribing the Self

Author

Listed:
  • Uri Gneezy
  • Silvia Saccardo
  • Marta Serra-Garcia
  • Roel van Veldhuizen

Abstract

Expert advice is often biased in ways that benefit the advisor. We demonstrate how self-deception helps advisors be biased while preserving their self-image as ethical and identify limits to advisors’ ability to self-deceive. In experiments where advisors recommend one of two investments to a client and receive a commission that depends on their recommendation, we vary the timing at which advisors learn about their own incentives. When advisors learn about their incentives before evaluating the available investments, they are more likely to be biased than when they learn about their incentives only after privately evaluating the investments. Consistent with self-deception, learning about the incentive before evaluating the options affects advisors’ beliefs and preferences over the investments. Biased advice persists with minimal justifications but is eliminated when all justifications are removed. These findings show how self-deception can be constrained to improve advice provision.

Suggested Citation

  • Uri Gneezy & Silvia Saccardo & Marta Serra-Garcia & Roel van Veldhuizen, 2020. "Bribing the Self," CESifo Working Paper Series 8065, CESifo.
  • Handle: RePEc:ces:ceswps:_8065
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    3. Vanessa Valero, 2022. "Redistribution and beliefs about the source of income inequality," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 876-901, June.
    4. Islam, Marco, 2021. "Motivated Risk Assessments," Working Papers 2021:12, Lund University, Department of Economics, revised 26 Jul 2022.
    5. von Grundherr, Michael & Jauernig, Johanna & Uhl, Matthias, 2021. "To condemn is not to punish: An experiment on hypocrisy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(2), pages 1-13.
    6. Katharina Momsen & Sebastian O. Schneider, 2022. "Motivated Reasoning, Information Avoidance, and Default Bias," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2022_03, Max Planck Institute for Research on Collective Goods.
    7. Eugen Dimant & Shaul Shalvi, 2022. "Meta-Nudging Honesty: Past, Present, and Future of the Research Frontier," CESifo Working Paper Series 9939, CESifo.
    8. Besancenot, Damien & Vranceanu, Radu, 2020. "Profession and deception: Experimental evidence on lying behavior among business and medical students," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 175-187.
    9. Beck, Tobias, 2020. "Size matters! Lying and Mistrust in the Continuous Deception Game," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224530, Verein für Socialpolitik / German Economic Association.
    10. Ging-Jehli, Nadja R. & Schneider, Florian H. & Weber, Roberto A., 2020. "On self-serving strategic beliefs," Games and Economic Behavior, Elsevier, vol. 122(C), pages 341-353.
    11. Silva Goncalves, Juliana & van Veldhuizen, Roel, 2020. "Subjective Judgment and Gender Bias in Advice: Evidence from the Laboratory," Working Papers 2020:27, Lund University, Department of Economics.
    12. Michael von Grundherr & Johanna Jauernig & Matthias Uhl, 2021. "To Condemn Is Not to Punish: An Experiment on Hypocrisy," Games, MDPI, vol. 12(2), pages 1-13, April.
    13. Lata Gangadharan & Philip J. Grossman & Nina Xue, 2021. "Identifying self-image concerns from motivated beliefs: Does it matter how and whom you ask?," Monash Economics Working Papers 2021-17, Monash University, Department of Economics.
    14. Tobias Beck, 2020. "Lying and Mistrust in the Continuous Deception Game," MAGKS Papers on Economics 202030, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Bernabe, Angelique & Hossain, Tanjim & Yu, Haomiao, 2021. "Truth, Honesty, and Strategic Interactions," MPRA Paper 109968, University Library of Munich, Germany.

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    More about this item

    Keywords

    advice; self-deception; self-image; motivated beliefs; laboratory experiment;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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