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Stepping Stone: Identifying self-image concerns from motivated beliefs: Does it matter how and whom you ask?

Author

Listed:
  • Lata Gangadharan

    (Monash University, Department of Economics)

  • Philip J. Grossman

    (Monash University, Department of Economics)

  • Nina Xue

    (Monash University, Department of Economics)

Abstract

Beliefs are increasingly recognised as an important driver of behaviour, but measuring beliefs is not straightforward. We design a giving experiment to compare beliefs using different elicitation mechanisms when motivated reasoning may be present. We propose a new means of identifying self-image concerns through beliefs about the behaviour of others. Consistent with a simple theoretical framework, we find evidence of self-image biases for non-donors when beliefs are not incentivised, while donors' beliefs are more accurate, irrespective of the incentive mechanism. Offering a binary incentive does not reduce non-donors' pessimism about others, however, a variation of the Becker-DeGroot-Marschak (BDM) procedure does appear to "debias" their beliefs. Our results also show that belief biases do not vary with the timing of belief elicitation.

Suggested Citation

  • Lata Gangadharan & Philip J. Grossman & Nina Xue, 2022. "Stepping Stone: Identifying self-image concerns from motivated beliefs: Does it matter how and whom you ask?," Monash Economics Working Papers 2022-05, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2022-05
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    More about this item

    Keywords

    self-image; motivated beliefs; incentive mechanisms; altruism; experiment;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • H4 - Public Economics - - Publicly Provided Goods

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