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cc-by-nc-nd, (c) Cerrone et al., 2025
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/220517

Project Choice and Social Image Concerns

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Employees' desire to impress their employer may lead to suboptimal choices, such as performing tasks that are out of their depth. In this paper, we formalise this intuition in a principal-agent setting and we experimentally analyse its practical relevance. Through a theoretical model, we show that an agent's desire to appear competent to their employer (social image concerns), can result in inefficient project selection. We test this prediction using a laboratory experiment and find that social image concerns increase the likelihood of suboptimal project choices when agents are male and the principal-agent interaction is not anonymous. Our findings have implications for organisational design.

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CERRONE, Claudia, DE CHIARA, Alessandro, MANNA, Ester, SAROGLOU, Theo. Project Choice and Social Image Concerns. _UB Economics – Working Papers_. 2025. Vol.  E25/484. [consulta: 2 de gener de 2026]. [Disponible a: https://hdl.handle.net/2445/220517]

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