Identifying Bias Through Post-Report Interactions When Advisors Drink Their Own Kool-Aid
Year: 2017
Type: preprint
Abstract: Two experiments show that face-to-face meetings help users discern reporters' true beliefs better than those who receive only a written report. Both experiments are based on a 'cheap talk' setting, modified to include two features common to accounting settings: reporters base reports on rich information, and (in a meeting condition) have rich channels of communication to users. Experiment 1 shows that meetings improve users' ability to discern the beliefs reporters held before they had an incentive to deceive the user. Once reporters learned of their incentive to deceive users, they revised their beliefs toward what they wanted users to believe (they self-deceived); those who revised more were more successful in their deception. Experiment 2 shows that users discerned reporters' beliefs through linguistic tone: reporters who believed their reports used more positive words. The results highlight the importance of face-to-face meetings and provide experimental support for Trivers' self-deception theory.
Source: SSRN Electronic Journal
Institutions: University of Massachusetts Amherst, Cornell University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2765447739