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Diya Abraham: Upstream Corrections in Teams (MUES seminar)

Research Seminar

18 Nov 11:00 AM

Members of a team may hesitate to override an authority figure even when they believe it is in the team’s best interest to do so. We investigate two explanations for this behavior: the authority’s task-relevant expertise, which we term their epistemic power, and the authority’s ability to influence team members’ earnings, which we term their deontic power. To study these explanations, we develop a theoretical model that distinguishes between two mechanisms underlying the decision to override: the weight individuals place on the authority’s advice and the perceived cost of acting against it. We estimate the model using data from two-person teams where we independently vary whether one member of the team has (i) epistemic power, operationalized through having their partner receive a noisy signal about their (task-relevant) expertise and (ii) deontic power, operationalized by giving them the opportunity to influence their partner's earnings in a team task. We find that deontic power has no detectable effect on the cost of overriding, either alone or when combined with epistemic power. However, in line with our hypotheses, a relatively weak signal of a team member's epistemic power increases substantially the weight their partner places on their advice thereby reducing the likelihood that they are overriden. We discuss the implications for hierarchical structures in organizations. Diya Abraham is a Lecturer (Assistant Professor) at the Department of Economics at the University of Reading. Her research interests lie in the fields of behavioral and experimental economics. I use experiments to explore how trust manifests and is reciprocated in markets, principal-agent problems, and public goods games. At the University of Reading, she teaches Games and Economics Behaviour and Business Economics. In the past, she has taught Economics of Banking as well as a slightly more advanced game theory course and an undergraduate project-based course at WU Vienna. This event is both online and in person. Join the Teams meeting

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