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Grossman, Z. and van der Weele, J.J. (2017). Self-image and willful ignorance in social decisions Journal of the European Economic Association, 15(1):173--217.


  • Journal
    Journal of the European Economic Association

Avoiding information about adverse welfare consequences of self-interested decisions, or willful ignorance, is an important source of socially harmful behavior. We analyze a Bayesian signaling model of an agent who cares about self-image and has the opportunity to learn the social benefits of a personally costly action. We show that willful ignorance can serve as an excuse for selfish behavior by obfuscating the signal about the decision maker{\textquoteright}s preferences, and serves to maintain the idea that the agent would have acted virtuously under full information. We derive several behavioral predictions that are inconsistent with either outcome-based preferences or social-image concern and conduct experiments to test them. Our findings, as well as a number of previous experimental results, offer support for these predictions and thus, the broader theory of self-signaling.