I'm in a Hurry, I Don't Want to Know! The Effects of Time Pressure and Transparency on Self-Serving Behavior

In a laboratory experiment, using a game in which a “decider” determines her own payoff and the payoff of a “stakeholder” by choosing between two payoff allocations, we analyze the effect of time pressure on self-serving behavior under two transparency conditions. Under “transparent consequences” the decider instantly observes that her payoff maximizing (“self-serving”) option is payoff minimizing for the stakeholder. Under “hidden consequences” there is initial uncertainty whether that option is payoff minimizing or maximizing for the stakeholder, but the information is obtainable at no cost. We find that (i) time pressure has no effect under transparent consequences, but (ii) significantly increases self-serving behavior under hidden consequences, (iii) despite having no effect on the frequency of information revelation. These results have major ramifications for organizational design and contribute to the understanding of the cognitive and motivational aspects of pro-social behavior