- Experimentation and learning
- Organizational economics
- Applied microeconomic theory
Feedback on Ideas (joint with Zeinab Aboutalebi) [Version 29/11/2018]
There are many organizational projects with distinct experimentation and implementation phases. Furthermore, it is common in such settings to receive feedback in the experimentation phase from supervisors. Giving honest feedback, however, involves tradeoffs in such settings. On the one hand, honest negative feedback pushes the agent to come up with better solutions or ideas to deal with the problem. On the other hand, it negatively affects the agent's opinion of herself making her believe that she's incapable of achieving success. We show that 1) such relationships are marred by inefficiencies when the agent has low self-opinion, but 2) a higher self-opinion of the agent has a multiplier effect on her performance driven by honest feedback from the supervisor and more experimentation by the agent. We also show that agent's over-confidence in her ability is welfare improving.