This study experimentally investigates how a principal uses outcome information in her subjective evaluation of an agent who chooses between alternatives of differing risks, and how outcome bias in the evaluation is related to the agent's risk taking decision. We consider both a situation of...

This study investigates determinants and consequences of outcome bias in a setting of delegated risk taking decisions. A decision maker acts on behalf of a client who holds the decision maker accountable by way of a subjective evaluation after observing the risk taking decision’s outcome....