Working Paper: NBER ID: w26595
Authors: Christine L. Exley; Judd B. Kessler
Abstract: In three sets of experiments involving over 4,200 subjects, we show that agents motivated to be selfish make systematic decision errors of the kind generally attributed to cognitive limitations or behavioral biases. We show that these decision errors are eliminated (or dramatically reduced) when self-serving motives are removed. We say that individuals make "motivated errors." They make decision errors, but only when it is self-serving to do so.
Keywords: motivated errors; decision-making; self-serving motives
JEL Codes: C91; D64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| self-serving motives (L21) | motivated errors (D91) |
| absence of self-serving motives (D64) | reduction of motivated errors (D91) |
| self-serving motives (L21) | systematic decision errors (D91) |
| salience manipulations (D91) | motivated errors (D91) |