Journal Article10.1162/JEEA.2006.4.4.673
Ego utility, overconfidence, and task choice
TL;DR: In this article, the authors model behavior when a decision maker cares about and manages her self-image and derive "ego utility" from positive views about her ability to do well in a skill-sensitive, "ambitious" task.
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Abstract: This paper models behavior when a decision maker cares about and manages her self-image. In addition to having preferences over material outcomes, the agent derives “ego utility” from positive views about her ability to do well in a skill-sensitive, “ambitious,” task. Although she uses Bayes’ rule to update beliefs, she tends to become overconfident regarding which task is appropriate for her. If tasks are equally informative about ability, her task choice is also overconfident. If the ambitious task is more informative about ability, she might initially display underconfidence in behavior, and, if she is disappointed by her performance, later become too ambitious. People with ego utility prefer to acquire free information in smaller pieces. Applications to employee motivation and other economic settings are discussed. (JEL: D83, D11)
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Citations
Image and misreporting
Mara Ewers,Florian Zimmermann +1 more
TL;DR: In this article, the authors analyze how image utility can lead to misreporting of private information in contexts where truthful reports maximize monetary outcomes, and suggest that overcondent appearance might be a consequence of social approval seeking.
Frustrated Achievers: Winners, Losers, and Subjective Well Being in New Market Economies
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74
Motivated false memory
TL;DR: This paper reported a large-scale experiment on memory errors and their relation to preferential traits including time preference, attitudes toward risk, and time preference in a large scale experiment with a large number of participants.
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Impulsive consumption and reflexive thought: Nudging ethical consumer behavior
TL;DR: In this article, a cue-triggered "wanting" mechanism was proposed as one potential explanation for the occurrence of such impulsive consumption, and three libertarian paternalistic means were discussed to foster an ethical way of impulsive behavior: strengthening willpower, reducing impulsive desires to consume, and guiding impulsive behaviour in ethical directions.
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Memory and Anticipation
TL;DR: In this paper, the authors consider Newcomb's paradox and the Prisoners' Dilemma and argue that the decision maker can ascribe only a tiny weight to anticipatory emotions, and that it is possible to obtain cooperation in both games with probability arbitrarily close to unity.
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