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When Good Advice is Ignored: The Role of Envy and Stubbornness

David Ronayne () and Daniel Sgroi

No 269082, Economic Research Papers from University of Warwick - Department of Economics

Abstract: We present results from an experiment involving 1,500 participants on whether, when and why good advice is ignored, focusing on envy and stubbornness. Participants performance in skill-based and luck-based tasks generated a probability of winning a bonus. About a quarter ignored advice that would have increased their chance of winning. Good advice was followed less often when the adviser was relatively highly remunerated or the task was skill-based. More envious advisees took good advice more often in the skill-based task, but higher adviser remuneration significantly reduced this effect. Susceptibility to the sunk cost fallacy reduced the uptake of good advice.

Keywords: Financial; Economics (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe and nep-exp
Date: 2018-01-17
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Working Paper: When Good Advice is Ignored: The Role of Envy and Stubbornness (2018) Downloads
Working Paper: When Good Advice is Ignored: The Role of Envy and Stubbornness (2018) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:269082

DOI: 10.22004/ag.econ.269082

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