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)
Pages: 48
Date: 2018-01-17
New Economics Papers: this item is included in nep-cbe and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/269082/files/twerp_1150_sgroi.pdf (application/pdf)
https://ageconsearch.umn.edu/record/269082/files/t ... i.pdf?subformat=pdfa (application/pdf)

Related works:
Working Paper: When Good Advice is Ignored: The Role of Envy and Stubbornness (2018)
Working Paper: When Good Advice is Ignored: The Role of Envy and Stubbornness (2018)
Working Paper: When Good Advice is Ignored: The Role of Envy and Stubbornness (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:269082

DOI: 10.22004/ag.econ.269082

Access Statistics for this paper

More papers in Economic Research Papers from University of Warwick - Department of Economics
Bibliographic data for series maintained by AgEcon Search ().