Paper #370

Title:

Self-serving biases: Evidence from a simulated labor relationship

Authors:

Gary Charness and Ernan Haruvy

Date:

January 1999

Abstract:

Previous studies have found evidence of a self-serving bias in bargaining and dispute resolution. We use experimental data to test for this effect in a simulated labor relatonship. We find a consistent discrepancy between employer beliefs and employee actions that can only be attributed to self-serving biases. This discrepancy is evident through stated beliefs, revealed satisfaction, and actual actions. We present evidence and discuss implications.

Keywords:

Experiment, fairness, labor relations, self-serving bias, Leex

JEL codes:

C70, C91, D21, J30

Area of Research:

Behavioral and Experimental Economics

Published in:

Journal of Managerial Psychology

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