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Whither the hidden returns to control: A short research paper

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Listed:
  • Jing Liu
  • Anthony Meder
  • Steven T. Schwartz
  • Richard A. Young

Abstract

The term “hidden returns to control” (HRTC) refers to a phenomenon in which agents display more prosocial behavior when principals refrain from using available controls than when controls are unavailable. However, while HRTC has been observed in some experiments, it has not been reliably replicated. Two experiments are designed to test the existence of HRTC. The experiments use simplified designs and within‐participant measurements to reduce noise. The first experiment is a trust game; the second is a gift‐exchange game. We find clear evidence of HRTC in both experiments and validate with a post‐experiment questionnaire.

Suggested Citation

  • Jing Liu & Anthony Meder & Steven T. Schwartz & Richard A. Young, 2022. "Whither the hidden returns to control: A short research paper," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3361-3369, December.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:8:p:3361-3369
    DOI: 10.1002/mde.3600
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