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The Input Bias: How Managers Misuse Information When Making Decisions

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Fans of the hit TV comedy “The Jerry Seinfeld Show” may remember an episode in which Jerry’s friend George leaves his car parked at work so that the boss will think George is putting in long hours, even when he’s not.   The idea, of course, is that George’s apparent productivity will net him a better performance review and a higher raise or bonus. Wharton professor Maurice Schweitzer would call George’s behavior “an attempt to invoke the input bias – the use of input information (in this case the false impression of long hours) to judge outcomes. Yet business decisions are frequently made based on input information that is either biased or manipulated, according to Schweitzer and colleague Karen R. Chinander, a professor at Florida Atlantic University .…

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