UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

The Intrinsic Value of Control: The Propensity to Under-Delegate in the Face of Potential Gains and Losses

Sunstein, CR; Bobadilla-Suarez, S; Sharot, T; (2016) The Intrinsic Value of Control: The Propensity to Under-Delegate in the Face of Potential Gains and Losses. Social Science Research Network (SSRN): Amsterdam, Netherlands. Green open access

[thumbnail of SSRN-id2733142.pdf]
Preview
Text
SSRN-id2733142.pdf - Published Version

Download (618kB) | Preview

Abstract

Human beings are often faced with a pervasive problem: whether to make their own decisions or to delegate decision tasks to someone else. Here, we test whether people are inclined to forgo monetary rewards in order to retain agency when faced with choices that could lead to losses and gains. In a simple choice task, we show that even though participants have all the information needed to maximize rewards and minimize losses, they choose to pay in order to control their own payoff. This tendency cannot be explained by participants’ overconfidence in their own ability, as their perceived ability was elicited and accounted for. Rather, the results reflect an intrinsic value for choice, which emerges in the domain of both gains and losses. Moreover, our data indicates that participants are aware that they are making suboptimal choices in the normative sense, but do so anyway, presumably for psychological gains.

Type: Working / discussion paper
Title: The Intrinsic Value of Control: The Propensity to Under-Delegate in the Face of Potential Gains and Losses
Open access status: An open access version is available from UCL Discovery
DOI: 10.2139/ssrn.2821919
Publisher version: https://dx.doi.org/10.2139/ssrn.2733142
Language: English
Additional information: This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: control premium, delegation, agency, decision rights, gains, losses
UCL classification: UCL
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Brain Sciences
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Brain Sciences > Div of Psychology and Lang Sciences
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Brain Sciences > Div of Psychology and Lang Sciences > Experimental Psychology
URI: https://discovery.ucl.ac.uk/id/eprint/10093040
Downloads since deposit
5Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item