Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71136
Authors: 
Danz, David
Hüber, Frank
Kübler, Dorothea
Mechtenberg, Lydia
Schmid, Julia
Year of Publication: 
2013
Series/Report no.: 
WZB Discussion Paper SP II 2013-203
Abstract: 
With the help of a simple model, we show that the hindsight bias can lead to inefficient delegation decisions. This prediction is tested experimentally. In an online experiment that was conducted during the FIFA World Cup 2010 participants were asked to predict a number of outcomes of the ongoing World Cup and had to recall their assessments after the outcomes had been realized. This served as a measure of the hindsight bias for each participant. The participants also had to make choices in a delegation game. Our data confirm that hindsight-biased subjects more frequently fail to delegate optimally than subjects whom we have classified as not hindsight biased.
Subjects: 
hindsight bias
delegation
experiments
JEL: 
C72
C91
D84
Document Type: 
Working Paper

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