Abstract
People often receive feedback influenced by external factors, yet little is known about how this affects self-serving biases. Our theoretical model explores how multi-dimensional uncertainty allows additional degrees of freedom for self-serving bias. In our primary experiment, feedback combining an individual's ability and a teammate's ability leads to biased belief updating. However, in a follow-up experiment with a random fundamental replacing the teammate, unbiased updating occurs. A validation experiment shows that belief distortion is greater when outcomes originate from human actions. Overall, our experiments highlight how multi-dimensional environments can enable self-serving biases.
Original language | English |
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Pages (from-to) | 1835-1874 |
Number of pages | 40 |
Journal | Economic Journal |
Volume | 134 |
Issue number | 661 |
DOIs | |
Publication status | Published - 5 Mar 2024 |