Motivated Errors

Christine L. Exley and Judd B. Kessler

No 26595, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: C91 D64 D91 (search for similar items in EconPapers)
Date: 2019-12
New Economics Papers: this item is included in nep-exp, nep-mic and nep-neu
Note: PE
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Citations: View citations in EconPapers (1)

Published as Christine L. Exley & Judd B. Kessler, 2024. "Motivated Errors," American Economic Review, vol 114(4), pages 961-987.

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