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Don't Ask Me If You Will Not Listen: The Dilemma of Participative Decision Making

  • Brice Corgnet


    (Economic Science Institute, Chapman University)

  • Roberto Hernán-González

    (Economic Science Institute, Chapman University)

We study the effect of participative decision making in an experimental principalagent game, where the principal can consult the agent’s preferred option regarding the task to be undertaken in the final stage of the game. We show that consulting the agent was beneficial to principals as long as they followed the agent’s choice. Ignoring the agent’s choice was detrimental to the principal as it engendered negative emotions and low levels of transfers. Nevertheless, the majority of principals were reluctant to change their mind and adopt the agent’s proposal. Our results suggest that the ability to change one’s own mind is an important dimension of managerial success.

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Paper provided by Chapman University, Economic Science Institute in its series Working Papers with number 11-04.

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Length: 60 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:chu:wpaper:11-04
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