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The effect of social interactions on the self-serving bias
Ilya Bartenev Jethro Elsden Monika Pompeo Gian Luca Tedeschi
University of Nottingham
Experimental Methods in Economics
29 April 2016
1 / 25
Outline
1 What is the self-serving bias?
Definition
Motivation
Measurement
2 Experimental design
Design framework
Methods
3 Results
Summary
Analysis
4 Conclusions
Relevance
Improvements
Summary
2 / 25
Outline
1 What is the self-serving bias?
Definition
Motivation
Measurement
2 Experimental design
Design framework
Methods
3 Results
Summary
Analysis
4 Conclusions
Relevance
Improvements
Summary
3 / 25
What is the self-serving bias?
Murphy’s Law
If more than one person is responsible for a miscalculation, no one will be
at fault.
What is the self-serving bias?
Blaming others or external factors for poor results
Claiming individual credit for success
It is but one of many biases contributing to forming a positive self-image.
Others include:
Overestimating ones ability relative to others
Downward comparison under pressure or threat
4 / 25
Motivation
Implications for economics:
Distorted self-image can lead to difficulties in bargaining and prevent
market clearing (Babcock and Loewenstein, 1997)
Unusually high rejection rates in ultimatum games (Knez and
Camerer, 1995)
Effect on (positive and negative) reciprocity – the reverse is our focus
today
5 / 25
Measurement
How is self-serving bias measured? The most common pattern appears to
be:
Subjects are asked to complete a task as a group
Subjects receive feedback on the overall result
Subjects are asked to estimate their own contribution relative to the
reported result
Studies using this method:
“Among friends. An examination of friendship and self-serving
bias”(Campbell et al, 2000)
“The self-serving bias in a relational context”(Campbell et al, 1998)
Both set a creative task to be completed in a pair people of a varying
degree of closeness and then record perceived own contribution.
6 / 25
Measurement
This is not the only possible way; for example, some other studies deduce
self-serving bias from reactions or descriptions instead of measuring it
directly.
For example, in “Hurting hurts more than helping helps: the role of the
self-serving bias ”(Offerman, 2002) subjects are put into a reciprocity
game situation and their emotional reactions to intentional and random
hurtful or kind moves are noted.
7 / 25
Outline
1 What is the self-serving bias?
Definition
Motivation
Measurement
2 Experimental design
Design framework
Methods
3 Results
Summary
Analysis
4 Conclusions
Relevance
Improvements
Summary
8 / 25
Design framework
Issues to take into consideration in the design:
- Subjects knew each other
- Positive and negative feedback
- Subjects perceive (to some extent) how well they are performing
Limitations:
- Limited time
- Limited number of subjects
- Limited experience of the experimenters
Some of the questions we faced:
- Should we present the subjects with the game payoffs?
- Should we include several rounds?
- How should we incentivize the subjects to report their true beliefs?
9 / 25
Experimental design
10 / 25
Experimental design
Hot response game (Offerman, 2002): The couples start with no
endowment.
The individual payoff is
represented by the sum of
the consequences of both
player’s actions.
The first mover starts by
making his choice, while
the second mover observes
the first mover’s choice
and decide a response be-
tween the given options.
11 / 25
Experimental design
Quiz:
Easy question Hard question
12 / 25
Outline
1 What is the self-serving bias?
Definition
Motivation
Measurement
2 Experimental design
Design framework
Methods
3 Results
Summary
Analysis
4 Conclusions
Relevance
Improvements
Summary
13 / 25
Summary
Score distribution
14 / 25
Summary
Summary of feedback results
Treatment
Difficulty 1 2
Difficult
Mean 3.5 3
SD (1.29) (0.81)
Easy
Mean 5.75 5.75
SD (2.36) (2.21)
15 / 25
Summary
Summary of attribution results
Treatment
Difficulty 1 2
Difficult
Mean 6.25 5.5
SD (1.26) (3.51)
Easy
Mean 5.5 3.75
SD (3.51) (1.26)
16 / 25
Analysis
Attribution distribution by feedback
17 / 25
Analysis
Two-sample Wilcoxon rank-sum tests
Test feedback difference by difficulty: Significant difference at 5%
(p=0.0141);
Test attribution difference by treatment: Significant difference at 10%
(p=0.0722) if feedback 5, no significant difference (p=0.9150) if
feedback <5;
Test attribution difference by type of relation: No significant
difference between kind and unkind behaviour for both feedback 5
(p=0.3173) and feedback <5 (p=0.6547);
18 / 25
Analysis
Difference-in-differences estimation of treatment effect on attribution
Variable Coefficient (Std. Err.)
Feedback -0.090 (0.456)
Treatment -1.847 (3.177)
Treatment#Feedback 0.675 (0.645)
Intercept 5.020∗∗ (2.194)
* p < 0.10, ** p < 0.05, *** p < 0.01
19 / 25
Analysis
Difference-in-differences estimation of interaction effect on attribution
Variable Coefficient (Std. Err.)
Feedback 0.500 (1.068)
Kind -6.800 (7.630)
Unkind 2.250 (9.904)
Kind#Feedback 0.700 (1.368)
Unkind#Feedback -1.000 (2.388)
Intercept 5.000 (4.776)
* p < 0.10, ** p < 0.05, *** p < 0.01
20 / 25
Outline
1 What is the self-serving bias?
Definition
Motivation
Measurement
2 Experimental design
Design framework
Methods
3 Results
Summary
Analysis
4 Conclusions
Relevance
Improvements
Summary
21 / 25
Conclusions
Hypothetical links between SSB and reciprocity:
Offerman (2002): SSB → Reciprocity
Our study: SSB ← Reciprocity
Both directions may be correct.
22 / 25
Conclusions
Possible improvements:
More subjects, and unbiased sample (e.g. strangers rather than
classmates)
Better separation of subjects to prevent communication.
Give subjects a copy of general instructions.
Multiple games/rounds, but need to consider learning by doing.
Investigate different forms of self-serving bias, i.e. blaming external
causes rather than internal causes, division of pie with partner
inflating own share.
Reciprocity by real task instead of computerized one.
23 / 25
Conclusions
Summary:
Prior interaction seems to influence reported contributions.
But small sample prevents us from establishing the nature of the
relationship.
Similar picture emerges when we focus on kind/unkind interaction.
The effects are not significant.
Bigger sample is needed.
24 / 25
THANK YOU
25 / 25

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The effect of social interactions on the self serving bias presentation

  • 1. The effect of social interactions on the self-serving bias Ilya Bartenev Jethro Elsden Monika Pompeo Gian Luca Tedeschi University of Nottingham Experimental Methods in Economics 29 April 2016 1 / 25
  • 2. Outline 1 What is the self-serving bias? Definition Motivation Measurement 2 Experimental design Design framework Methods 3 Results Summary Analysis 4 Conclusions Relevance Improvements Summary 2 / 25
  • 3. Outline 1 What is the self-serving bias? Definition Motivation Measurement 2 Experimental design Design framework Methods 3 Results Summary Analysis 4 Conclusions Relevance Improvements Summary 3 / 25
  • 4. What is the self-serving bias? Murphy’s Law If more than one person is responsible for a miscalculation, no one will be at fault. What is the self-serving bias? Blaming others or external factors for poor results Claiming individual credit for success It is but one of many biases contributing to forming a positive self-image. Others include: Overestimating ones ability relative to others Downward comparison under pressure or threat 4 / 25
  • 5. Motivation Implications for economics: Distorted self-image can lead to difficulties in bargaining and prevent market clearing (Babcock and Loewenstein, 1997) Unusually high rejection rates in ultimatum games (Knez and Camerer, 1995) Effect on (positive and negative) reciprocity – the reverse is our focus today 5 / 25
  • 6. Measurement How is self-serving bias measured? The most common pattern appears to be: Subjects are asked to complete a task as a group Subjects receive feedback on the overall result Subjects are asked to estimate their own contribution relative to the reported result Studies using this method: “Among friends. An examination of friendship and self-serving bias”(Campbell et al, 2000) “The self-serving bias in a relational context”(Campbell et al, 1998) Both set a creative task to be completed in a pair people of a varying degree of closeness and then record perceived own contribution. 6 / 25
  • 7. Measurement This is not the only possible way; for example, some other studies deduce self-serving bias from reactions or descriptions instead of measuring it directly. For example, in “Hurting hurts more than helping helps: the role of the self-serving bias ”(Offerman, 2002) subjects are put into a reciprocity game situation and their emotional reactions to intentional and random hurtful or kind moves are noted. 7 / 25
  • 8. Outline 1 What is the self-serving bias? Definition Motivation Measurement 2 Experimental design Design framework Methods 3 Results Summary Analysis 4 Conclusions Relevance Improvements Summary 8 / 25
  • 9. Design framework Issues to take into consideration in the design: - Subjects knew each other - Positive and negative feedback - Subjects perceive (to some extent) how well they are performing Limitations: - Limited time - Limited number of subjects - Limited experience of the experimenters Some of the questions we faced: - Should we present the subjects with the game payoffs? - Should we include several rounds? - How should we incentivize the subjects to report their true beliefs? 9 / 25
  • 11. Experimental design Hot response game (Offerman, 2002): The couples start with no endowment. The individual payoff is represented by the sum of the consequences of both player’s actions. The first mover starts by making his choice, while the second mover observes the first mover’s choice and decide a response be- tween the given options. 11 / 25
  • 13. Outline 1 What is the self-serving bias? Definition Motivation Measurement 2 Experimental design Design framework Methods 3 Results Summary Analysis 4 Conclusions Relevance Improvements Summary 13 / 25
  • 15. Summary Summary of feedback results Treatment Difficulty 1 2 Difficult Mean 3.5 3 SD (1.29) (0.81) Easy Mean 5.75 5.75 SD (2.36) (2.21) 15 / 25
  • 16. Summary Summary of attribution results Treatment Difficulty 1 2 Difficult Mean 6.25 5.5 SD (1.26) (3.51) Easy Mean 5.5 3.75 SD (3.51) (1.26) 16 / 25
  • 18. Analysis Two-sample Wilcoxon rank-sum tests Test feedback difference by difficulty: Significant difference at 5% (p=0.0141); Test attribution difference by treatment: Significant difference at 10% (p=0.0722) if feedback 5, no significant difference (p=0.9150) if feedback <5; Test attribution difference by type of relation: No significant difference between kind and unkind behaviour for both feedback 5 (p=0.3173) and feedback <5 (p=0.6547); 18 / 25
  • 19. Analysis Difference-in-differences estimation of treatment effect on attribution Variable Coefficient (Std. Err.) Feedback -0.090 (0.456) Treatment -1.847 (3.177) Treatment#Feedback 0.675 (0.645) Intercept 5.020∗∗ (2.194) * p < 0.10, ** p < 0.05, *** p < 0.01 19 / 25
  • 20. Analysis Difference-in-differences estimation of interaction effect on attribution Variable Coefficient (Std. Err.) Feedback 0.500 (1.068) Kind -6.800 (7.630) Unkind 2.250 (9.904) Kind#Feedback 0.700 (1.368) Unkind#Feedback -1.000 (2.388) Intercept 5.000 (4.776) * p < 0.10, ** p < 0.05, *** p < 0.01 20 / 25
  • 21. Outline 1 What is the self-serving bias? Definition Motivation Measurement 2 Experimental design Design framework Methods 3 Results Summary Analysis 4 Conclusions Relevance Improvements Summary 21 / 25
  • 22. Conclusions Hypothetical links between SSB and reciprocity: Offerman (2002): SSB → Reciprocity Our study: SSB ← Reciprocity Both directions may be correct. 22 / 25
  • 23. Conclusions Possible improvements: More subjects, and unbiased sample (e.g. strangers rather than classmates) Better separation of subjects to prevent communication. Give subjects a copy of general instructions. Multiple games/rounds, but need to consider learning by doing. Investigate different forms of self-serving bias, i.e. blaming external causes rather than internal causes, division of pie with partner inflating own share. Reciprocity by real task instead of computerized one. 23 / 25
  • 24. Conclusions Summary: Prior interaction seems to influence reported contributions. But small sample prevents us from establishing the nature of the relationship. Similar picture emerges when we focus on kind/unkind interaction. The effects are not significant. Bigger sample is needed. 24 / 25