We develop a simple model that describes individuals’ self-assessments oftheir abilities. We assume that individuals learn about their abilities from appraisalsof others and experience. Our model predicts that if communicationis imperfect, then (i) appraisals of others tend to be too positive,...

In a multiperiod setting, decision-makers can learn about the consequences of their decisions throughexperimentation. In this paper we examine how in a two-party system polarization and political instability affectlearning through experimentation. We distinguish two cases:the decision to be made...

An important role of managers is to motivate subordinates. Monetary rewards have been the focus of economic analysis. Managers also use other means to influence subordinates. If a manager can better assess the subordinate's ability than the subordinate himself, and if ability and effort are...

This paper is concerned with the role of committees in collective decision-making processes in a world where agents must be motivated to collect information. Committees improve the quality of decision-making by providing information and by coordinating the collection of information. We address...

This article is concerned with the role of committees in collective decision making processes in a world where agents must be motivated to collect information. Committees improve the quality of decision making by providing information and by coordinating the collection of information. We address...

Neutral framing is a standard tool of experimental economics. However, overly neutral instructions, which lack any contextual clues, can lead to strange behavior. In a contextless second price auction for a meaningless good, a majority of subjects enter positive bids - a case of cognitive...

Previous research shows that ethnic minority students perform poorer in school when they are taught by ethnic majority teachers. Why this is the case was unclear. This paper focuses on one important potential explanation: I examine whether ethnic majority teachers grade minority and majority...

We provide a game theoretic analysis of how power shapes the clarity of communication. We analyze information transmission in a cheap talk bargaining game between an informed Sender and an uninformed Receiver. Theoretically, we find that the maximum amount of information that can be transmitted...