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Sticking with What (Barely) Worked / Lars Lefgren, Brennan Platt, Joseph Price.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Lefgren, Lars.
Contributor:
National Bureau of Economic Research.
Platt, Brennan.
Price, Joseph.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17477.
NBER working paper series no. w17477
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Sticking with What
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2011.
Summary:
Outcome bias occurs when an evaluator considers ex-post outcomes when judging whether a choice was correct, ex-ante. We formalize this cognitive bias in a simple model of distorted Bayesian updating. We then examine strategy changes made by professional football coaches. We find they are more likely to revise their strategy after a loss than a win -- even for narrow losses, which are uninformative about future success. This increased revision following a loss occurs even when a loss was expected, and the offensive strategy is revised even when failure is attributable to the defense. These results are consistent with our model's predictions.
Notes:
Print version record
October 2011.

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