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Perceiving outcomes as determined by external forces: The role of event construal in attenuating the outcome bias

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  • Savani, Krishna
  • King, Dan

Abstract

People view the same decision as better when it is followed by a positive outcome than by a negative outcome, a phenomenon called the outcome bias. Based on the idea that a key cause of the outcome bias is people’s failure to appreciate that outcomes are in part determined by external forces, three studies tested a novel method to reduce the outcome bias. Experiment 1 showed that people who construed a person’s interactions with the environment as events rather than as actions or choices were less susceptible to the outcome bias in a medical decision making task. Experiments 2 and 3 demonstrated that people who recalled past events rather than actions or choices exhibited lower outcome bias in a risky decision making task and in an ethical judgment task. These findings indicate that an event construal helps people appreciate the role of external factors in causing outcomes.

Suggested Citation

  • Savani, Krishna & King, Dan, 2015. "Perceiving outcomes as determined by external forces: The role of event construal in attenuating the outcome bias," Organizational Behavior and Human Decision Processes, Elsevier, vol. 130(C), pages 136-146.
  • Handle: RePEc:eee:jobhdp:v:130:y:2015:i:c:p:136-146
    DOI: 10.1016/j.obhdp.2015.05.002
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    References listed on IDEAS

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    Cited by:

    1. Richard B. Anderson & Laura Marie Leventhal & Don C. Zhang & Daniel Fasko, Jr. & Zachariah Basehore & Christopher Gamsby & Jared Branch & Timothy Patrick, 2019. "Belief bias and representation in assessing the Bayesian rationality of others," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 14(1), pages 1-10, January.
    2. Kausel, Edgar E. & Ventura, Santiago & Rodríguez, Arturo, 2019. "Outcome bias in subjective ratings of performance: Evidence from the (football) field," Journal of Economic Psychology, Elsevier, vol. 75(PB).
    3. repec:cup:judgdm:v:14:y:2019:i:1:p:1-10 is not listed on IDEAS
    4. Lorenz Graf-Vlachy & Jonathan Bundy & Donald C. Hambrick, 2020. "Effects of an Advancing Tenure on CEO Cognitive Complexity," Organization Science, INFORMS, vol. 31(4), pages 936-959, July.
    5. Ma, Anyi & Yang, Yu & Savani, Krishna, 2019. "“Take it or leave it!” A choice mindset leads to greater persistence and better outcomes in negotiations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 153(C), pages 1-12.
    6. Xiaoqian Fan & Qian Cao & Lin Yang, 2021. "Do professional norms in the medical industry favor outcome bias?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1275-1283, July.
    7. Marco Castellani & Linda Alengoz & Niccolò Casnici & Flaminio Squazzoni, 2022. "A role-game laboratory experiment on the influence of country prospects reports on investment decisions in two artificial organizational settings," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 21(1), pages 121-149, June.
    8. Ramona Ludolph & Peter J. Schulz, 2018. "Debiasing Health-Related Judgments and Decision Making: A Systematic Review," Medical Decision Making, , vol. 38(1), pages 3-13, January.

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