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Article . 2014
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The Intrinsic Value of Decision Rights

The intrinsic value of decision rights
Authors: Bartling, Björn; Fehr, Ernst; Herz, Holger Andreas;

The Intrinsic Value of Decision Rights

Abstract

Philosophers, psychologists, and economists have long argued that certain decision rights carry not only instrumental value but may also be valuable for their own sake. The ideas of autonomy, freedom, and liberty derive their intuitive appeal - at least partly - from an assumed positive intrinsic value of decision rights. Providing clean evidence for the existence of this intrinsic value and measuring its size, however, is intricate. Here, we develop a method capable of achieving these goals. The data reveal that the large majority of our subjects intrinsically value decision rights beyond their instrumental benefit. The intrinsic valuation of decision rights has potentially important consequences for corporate governance, human resource management, and optimal job design: it may explain why managers value power, why employees appreciate jobs with task discretion, why individuals sort into self-employment, and why the reallocation of decision rights is often very difficult and cumbersome. Our method and results may also prove useful in developing an empirical revealed preference foundation for concepts such as "freedom of choice" and "individual autonomy".

Country
Switzerland
Keywords

Decision rights, Economics and Econometrics, Test, info:eu-repo/classification/udc/33, decision rights, intrinsic value, authority, Soziale Werte, 2002 Economics and Econometrics, Decision theory, decision rights, Entscheidung, Private benefits, ECON Department of Economics, Experiment, 10007 Department of Economics, intrinsic value, C91, Entscheidungstheorie, Motivation, Decision rights, authority, private benefits of control, Authority, ddc:330, Autorität, 330 Economics, D23, D03, Entscheidungsbefugnis, private benefits of control, authority, jel: jel:D23, jel: jel:D03, jel: jel:C91

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    popularity
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    influence
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
12
Average
Top 10%
Top 10%
bronze