Journal article
The role of information asymmetry in escalation phenomena: Empirical evidence
Journal of economic behavior & organization, Vol.69(2), pp.135-147
02/01/2009
DOI: 10.1016/j.jebo.2007.07.007
Abstract
Economic rationality dictates that only incremental costs and benefits should affect decisions. Observed behavior often seems to violate this principle, resulting in unwarranted commitment to past choices and their escalation. In this paper, we present experimental results that show that information asymmetry plays a key role in determining when such escalation behavior Occurs. This finding opens new avenues for mitigating escalation behavior since information asymmetry is an environmental feature that can be modified by organization design and explicit economic rewards. (C) 2008 Elsevier B.V. All rights reserved.
Details
- Title: Subtitle
- The role of information asymmetry in escalation phenomena: Empirical evidence
- Creators
- Joyce E. Berg - University of IowaJohn W. Dickhaut - Chapman UniversityChandra Kanodia - University of Minnesota
- Resource Type
- Journal article
- Publication Details
- Journal of economic behavior & organization, Vol.69(2), pp.135-147
- DOI
- 10.1016/j.jebo.2007.07.007
- ISSN
- 0167-2681
- eISSN
- 1879-1751
- Publisher
- Elsevier
- Number of pages
- 13
- Language
- English
- Date published
- 02/01/2009
- Academic Unit
- Accounting
- Record Identifier
- 9984963043602771
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