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Ignorance, Intention and Stochastic Outcomes

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  • Friedrichsen, Jana

    (FU Berlin, HU Berlin, DIW and WZB)

  • Momsen, Katharina

    (University of Innsbruck)

  • Piasenti, Stefano

    (HU Berlin and DIW)

Abstract

In sequential interactions, both the agent’s intention and the outcome of his choice may influence the principal’s action. While outcomes are typically observable, intentions are more likely to be hidden, leaving potential wiggle room for the principal when deciding on a reciprocating action. We employ a controlled experiment to investigate how intentions and outcome affect the principal’s actions and whether principals use hidden information as an excuse to behave more selfishly. We find that principals react mainly to the intention of the agent. When intentions are not revealed by default, principals tend to select into information based on their inclination to behave more prosocially. While information avoidance is frequent and selfishness is higher with hidden information, we do not find evidence of a strategic exploitation of moral wiggle room.

Suggested Citation

  • Friedrichsen, Jana & Momsen, Katharina & Piasenti, Stefano, 2022. "Ignorance, Intention and Stochastic Outcomes," Rationality and Competition Discussion Paper Series 330, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:330
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    3. Kevin Bauer & Andrej Gill, 2024. "Mirror, Mirror on the Wall: Algorithmic Assessments, Transparency, and Self-Fulfilling Prophecies," Information Systems Research, INFORMS, vol. 35(1), pages 226-248, March.

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    More about this item

    Keywords

    information avoidance; dictator game; moral wiggle room; intentions; reciprocity;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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