Les Cahiers de Recherche - HEC Paris
Price and Quality Decisions by Self-Serving Managers
(), Marco Bertini and Oded Koenigsberg
Abstract: This research studies the possibility that managers
attribute firm performance to price and quality decisions in a self-serving
manner: they tend to credit success in the market to the product
characteristic that matches the commercial orientation of the business, but
blame failure on the other. The problem with this reasoning is that
managers then carry out adjustments based on biased information, which is
suboptimal. The paper first models the phenomenon to clarify the cost of
self-serving attributions to a firm. It then reports experiments that
provide empirical support for the theory.
Keywords: Causal inference; self-serving bias; managerial decision-making; (follow links to similar papers)
39 pages, March 20, 2016
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