IDEAS home Printed from https://ideas.repec.org/p/zbw/kitwps/16.html
   My bibliography  Save this paper

How performance based payoffs influence estimates of complex information? An experimental study on quality and precision in estimation tasks

Author

Listed:
  • Kroll, Eike Benjamin
  • Rieger, Jörg
  • Vogt, Bodo

Abstract

This paper investigates the processing of repeated complex information. The focus of this study is, whether additional information and the introduction of performance-based payoffs have an influence on judgement. Therefore, an experiment is designed to investigate the degree of precision and quality of interval estimates. The data shows that providing additional information decreases the precision of stated estimates, while it improves its quality. The same result is obtained, when performance-based payoffs are introduced to an otherwise hypothetical decision environment. That means, while the variation in the treatment variables increase the quality of the estimate, the precision as a reflection of the decision makers confidence is reduced.

Suggested Citation

  • Kroll, Eike Benjamin & Rieger, Jörg & Vogt, Bodo, 2011. "How performance based payoffs influence estimates of complex information? An experimental study on quality and precision in estimation tasks," Working Paper Series in Economics 16, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
  • Handle: RePEc:zbw:kitwps:16
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/44978/1/654468192.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Wendell, R. E. & McKelvey, R. D., 1981. "New perspectives in competitive location theory," European Journal of Operational Research, Elsevier, vol. 6(2), pages 174-182, February.
    2. Bandelt, Hans-Jurgen, 1985. "Networks with condorcet solutions," European Journal of Operational Research, Elsevier, vol. 20(3), pages 314-326, June.
    3. Martin J. Osborne & Al Slivinksi, 1995. "A Model of Political Competition with Citizen-Candidates," Department of Economics Working Papers 1995-01, McMaster University.
    4. Demange, Gabrielle, 1982. "Single-peaked orders on a tree," Mathematical Social Sciences, Elsevier, vol. 3(4), pages 389-396, December.
    5. Eiselt, H. A. & Laporte, G., 1989. "Competitive spatial models," European Journal of Operational Research, Elsevier, vol. 39(3), pages 231-242, April.
    6. Martin J. Osborne & Al Slivinski, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, Oxford University Press, vol. 111(1), pages 65-96.
    7. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
    8. Miguel Ballester & Guillaume Haeringer, 2011. "A characterization of the single-peaked domain," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(2), pages 305-322, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    interval estimates; uncertainty; judgmental estimation; repeated information; hypothetical versus payoffs; experiment;

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:kitwps:16. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/fwkitde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.