Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Impetuous Youngsters and Jaded Old-Timers: Acquiring a Reputation for Learning

Canice Prendergast and Lars Stole
Journal of Political Economy
Vol. 104, No. 6 (Dec., 1996), pp. 1105-1134
Stable URL: http://www.jstor.org/stable/2138935
Page Count: 30
  • Read Online (Free)
  • Download ($14.00)
  • Subscribe ($19.50)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Impetuous Youngsters and Jaded Old-Timers: Acquiring a Reputation for Learning
Preview not available

Abstract

This paper examines individual decision making when decisions reflect on people's ability to learn. We address this problem in the context of a manager making investment decisions on a project over time. We show that in an effort to appear as a fast learner, the manager will exaggerate his own information; but ultimately, he becomes too conservative, being unwilling to change his investments on the basis of new information. Our results arise purely from learning about competence rather than concavity or convexity of the rewards functions. We relate our results to the existing psychology literature concerning cognitive dissonance reduction.

Page Thumbnails

  • Thumbnail: Page 
1105
    1105
  • Thumbnail: Page 
1106
    1106
  • Thumbnail: Page 
1107
    1107
  • Thumbnail: Page 
1108
    1108
  • Thumbnail: Page 
1109
    1109
  • Thumbnail: Page 
1110
    1110
  • Thumbnail: Page 
1111
    1111
  • Thumbnail: Page 
1112
    1112
  • Thumbnail: Page 
1113
    1113
  • Thumbnail: Page 
1114
    1114
  • Thumbnail: Page 
1115
    1115
  • Thumbnail: Page 
1116
    1116
  • Thumbnail: Page 
1117
    1117
  • Thumbnail: Page 
1118
    1118
  • Thumbnail: Page 
1119
    1119
  • Thumbnail: Page 
1120
    1120
  • Thumbnail: Page 
1121
    1121
  • Thumbnail: Page 
1122
    1122
  • Thumbnail: Page 
1123
    1123
  • Thumbnail: Page 
1124
    1124
  • Thumbnail: Page 
1125
    1125
  • Thumbnail: Page 
1126
    1126
  • Thumbnail: Page 
1127
    1127
  • Thumbnail: Page 
1128
    1128
  • Thumbnail: Page 
1129
    1129
  • Thumbnail: Page 
1130
    1130
  • Thumbnail: Page 
1131
    1131
  • Thumbnail: Page 
1132
    1132
  • Thumbnail: Page 
1133
    1133
  • Thumbnail: Page 
1134
    1134