On the roots of the intrinsic value of decision rights: Experimental evidence

Ferreira, João V.; Hanaki, Nobuyuki; Tarroux, Benoît

doi:10.1016/j.geb.2019.10.008

Cited by 19 publications

(26 citation statements)

References 31 publications

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“…A positive intrinsic value means that decision makers assign a positive weight to holding the decision making right and thus the power to choose among alternatives. Bartling et al (2014) have found significantly positive intrinsic values, and this has been confirmed in subsequent work (Ferreira et al, 2020).…”

supporting

confidence: 71%

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The Intrinsic Value of Decision Rights: A Note on Team vs Individual Decision-Making

2020

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Team decision-making prevails in modern organizations. Teams often need to decide whether to delegate or make a decision themselves. Recent work has found that many individuals assign a significantly positive intrinsic value to having a decision right, which may distort the choice between delegating a decision or not. Here we examine experimentally whether teams are also prone to such distortions. While in the aggregate we find no differences between individuals and teams, we uncover an important heterogeneity within teams. Teams with a smooth decision making process have much lower intrinsic values of decision rights than individuals, often not even significantly different from zero. Yet, teams with conflicts in reaching a decision have very high intrinsic values of decision rights, thus distorting decisions. Hence, the team decision making process is of significant importance for the decision-making quality in organizations.

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supporting

confidence: 71%

“…In fact, recent work has shown that many individuals have positive intrinsic values of decision rights (see e.g. Bartling et al, 2014;Ferreira et al, 2020). It has not been addressed, however, whether teams also have such positive intrinsic values.…”

Section: Discussionmentioning

confidence: 99%

The Intrinsic Value of Decision Rights: A Note on Team vs Individual Decision-Making

2020

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“…This could be interpreted as a natural consequence of the fact that, in our setting, there is no added self-reliance when a choice is offered as compared to the random selection of organizations. Since self-reliance has been shown to be the main component of the intrinsic value of decision rights (Ferreira, Hanaki, and Tarroux, 2020), this feature would explain our results if subjects perceive this "fake agency" and react negatively to it in the income declaration task. This result has obvious implications in the field.…”

Section: Discussionmentioning

confidence: 83%

Does voting on tax fund destination imply a direct democracy effect?

Jacquemet

Luchini

Malézieux

2021

International Review of Law and Economics

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Does giving taxpayers a voice over the destination of tax revenues lead to more honest income declarations? Previous experiments have shown that giving participants the opportunity to select the organization that receives their tax funds tends to increase tax compliance. The aim of this paper is to assess whether this increase in compliance is induced by the sole fact of giving subjects a choice -a "direct democracy effect". To that aim, we ask participants to a tax evasion game to choose, in a collective or individual choice setting, between two very similar organizations which provide the same social (ecological) benefits. We elicit compliance for both organizations before the choice is made so as to control for the counter-factual compliance decision. We find that democracy does not increase compliance, and even observe a slight negative effect -in particular for women. Our results confirm the existence of a commitment effect of democracy, leading to favor more the selected organization when it was actively chosen. The commitment effect of democracy is however not enough to overcome the decrease in the level of compliance. Thanks to response times data, we show that prior choice on similar options as compared to a purely random selection weakens the preference for honesty. One important field application of our results is that democracy in tax spending must offer real choices to tax payers to improve compliance.

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“…While most farmers used chemical fertilizer prior to the intervention, their input mix was substantially different from the recommended mix: farmers used on average 77% On the intrinsic importance of autonomy see e.g. Sen (1999); Bartling et al (2014); Ferreira et al (2020). We discuss the instrumental value of autonomy further below.…”

Section: Introductionmentioning

confidence: 99%

Appropriate Technology Use and Autonomy: Evidence from Mexico

Corral¹,

Giné²,

Mahajan³

et al. 2020

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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On the roots of the intrinsic value of decision rights: Experimental evidence

Cited by 19 publications

References 31 publications

The Intrinsic Value of Decision Rights: A Note on Team vs Individual Decision-Making

The Intrinsic Value of Decision Rights: A Note on Team vs Individual Decision-Making

Does voting on tax fund destination imply a direct democracy effect?

Appropriate Technology Use and Autonomy: Evidence from Mexico

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