Biased information processing in the escalation paradigm: Information search and information evaluation as potential mediators of escalating commitment.

2012 ◽  
Vol 97 (1) ◽  
pp. 16-32 ◽  
Author(s):  
Thomas Schultze ◽  
Felix Pfeiffer ◽  
Stefan Schulz-Hardt
Keyword(s):  
Information Processing ◽  
Information Search ◽  
Information Evaluation ◽  
Escalating Commitment ◽  
Biased Information

Information Processing Biases in Impairment Decisions: Effect of Reversibility of Impairment Losses and Disclosure Transparency

2018 ◽  
Vol 30 (2) ◽  
pp. 77-94
Author(s):  
Hwee Cheng Tan ◽  
Ken T. Trotman
Keyword(s):  
Information Processing ◽  
Information Search ◽  
Jel Classification ◽  
Regulatory Requirements ◽  
Experimental Conditions ◽  
Information Evaluation ◽  
Evaluation Bias ◽  
Information Processing Biases ◽  
Search Bias

ABSTRACT We investigate the effect of regulatory requirements on impairment decisions and managers' search for and evaluation of impairment information. We manipulate reversibility of impairment losses (“can be reversed” versus “cannot be reversed”) and transparency in disclosures of impairment assumptions (more transparent versus less transparent) in a 2 × 2 experiment. We find that managers are more willing to impair when impairment losses can be reversed than when they cannot be reversed, but this effect does not vary with disclosure transparency. We also find that managers display information search bias in all four experimental conditions, however, regulatory requirements do not result in differences in the level of information search bias across the conditions. In contrast, regulatory requirements affect the differences in the level of information evaluation bias across conditions. We find that when impairment losses cannot be reversed, information evaluation bias is higher when disclosures are more transparent than less transparent. JEL Classification: M40; M41.

Process Accountability as a De-Escalation Technique

2020 ◽  
Vol 19 (2) ◽  
pp. 63-74
Author(s):  
Klaus Moser ◽  
Hans-Georg Wolff ◽  
Roman Soucek
Keyword(s):  
Cognitive Processes ◽  
Information Search ◽  
Employment Relationship ◽  
Escalation Of Commitment ◽  
Tunnel Vision ◽  
Course Of Action ◽  
Performance Problems ◽  
Over Time ◽  
Biased Information

Abstract. Escalation of commitment occurs when a course of action is continued despite repeated drawbacks (e.g., maintaining an employment relationship despite severe performance problems). We analyze process accountability (PA) as a de-escalation technique that helps to discontinue a failing course of action and show how time moderates both the behavioral and cognitive processes involved: (1) Because sound decisions should be based on (hopefully unbiased) information search, which requires time to gather, the effect of PA on de-escalation increases over time. (2) Because continuing information search creates behavioral commitment, the debiasing effect of PA on information search diminishes over time. (3) Consistent with the tunnel vision notion, the effects of less biased information search on de-escalation decrease over time.

Lemons problem in collaborative consumption platforms

2018 ◽  
Vol 28 (3) ◽  
pp. 746-766 ◽  
Author(s):  
Joonheui Bae ◽  
Dong-Mo Koo
Keyword(s):  
Information Processing ◽  
Information Search ◽  
Intention To Use ◽  
Collaborative Consumption ◽  
Content Type ◽  
Processing Styles ◽  
Cognitive Information Processing ◽  
Other Information ◽  
Cognitive Information ◽  
Textual Cues

Purpose Most of the research on collaborative consumption platforms (CCPs) has focused on motivational drives, and little research has been conducted on the problem of unbalanced information sharing, also known as the “lemons problem,” and signals. The paper aims to discuss these issues. Design/methodology/approach This study conducted a netnography and an experiment. Findings The netnographic study showed that participants tend to use low ratings and negative reviews as cues implying more searches, use ratings as an anchor to adjust other information, and employ differing cognitive information-processing styles. The experimental results show that, in a normal environment (when ratings are high), visualizers (verbalizers) have more of an intention to use CCPs when they are exposed to abundant pictures (textual cues); however, when the cues lead to a further information search (when the ratings are low), this search behavior pattern is reversed: visualizers (verbalizers) have more of an intention to use CCPs when they are exposed to abundant textual cues (pictures). Research limitations/implications This study extends previous research by showing that people frequently use differing heuristics depending on the context; that ratings have an anchoring effect and guide people in selecting a signal to use and condition how they use it; and that visualizers prefer text cues to pictorial cues when trying to make informed decisions under a condition that points to a further information search. These results are opposite of previous assertion. Practical implications Marketers are advised to provide a mechanism by which users can extract the cues they need and reduce the less urgent ones; devise a mechanism that screens participants and divides them into two categories: those who post honest evaluations and those who do not; and reduce the opportunistic behaviors of partners on both sides. Originality/value The current study addresses consumers’ use of information posted by other consumers on CCPs and demonstrates that participants use low ratings and negative reviews as cues implying more searches, use ratings as an anchor to adjust other information, and employ differing cognitive information-processing styles. Previous research rarely addressed these information search behaviors of consumers on CCPs.

Biased information search in group decision making.

2000 ◽  
Vol 78 (4) ◽  
pp. 655-669 ◽  
Author(s):  
Stefan Schulz-Hardt ◽  
Dieter Frey ◽  
Carsten Lüthgens ◽  
Serge Moscovici
Keyword(s):  
Decision Making ◽  
Group Decision Making ◽  
Information Search ◽  
Group Decision ◽  
Biased Information

Attitude accessibility and biased information processing: The moderating role of self-monitoring

1995 ◽  
Vol 19 (4) ◽  
pp. 269-277 ◽  
Author(s):  
Kenneth G. DeBono ◽  
Saundra Green ◽  
Jessica Shair ◽  
Margo Benson
Keyword(s):  
Information Processing ◽  
Self Monitoring ◽  
Attitude Accessibility ◽  
Moderating Role ◽  
Biased Information
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