We let subjects take risky decisions that affect themselves and a passive recipient. Adding a requirement to justify their choices significantly reduces loss aversion. This indicates that such an accountability mechanism may be effective at debiasing loss aversion in agency relations.

Performance-contingent compensation by means of stock options may induce risk-taking in agents that is excessive from the point of view of the company or the shareholders. We test whether increasing shareholder control may be an effective checking mechanism to rein in such excessive risk-taking....

Managers face hard choices between process and outcome systems of accountability in evaluating employees, but little is known about how managers resolve them. Building on the premise that political ideologies serve as uncertainty-reducing heuristics, two studies of working managers show that:...