The Pygmalion Effect : an Agency Model with Reference Dependent Preferences

  title={The Pygmalion Effect : an Agency Model with Reference Dependent Preferences},
  author={Juan C. Conesa and Beetsma},
  • Juan C. Conesa, Beetsma
  • Published 2005
We attempt to formulate and explain two types of self-fulfilling prophecy, called the Pygmalion effect (if a supervisor thinks her subordinates will succeed, they are more likely to succeed) and the Galatea effect (if a person thinks he will succeed, he is more likely to succeed). To this purpose, we extend a simple agency model with moral hazard and limited liability by introducing a model of reference dependent preferences (RDP) by Kőszegi and Rabin (2004). We show that the agent with high… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.
11 Citations
12 References
Similar Papers


Publications referenced by this paper.
Showing 1-10 of 12 references

A Model of Reference-Dependent Preferences, mimeo

  • B. Kőszegi, M. Rabin
  • 2004
Highly Influential
9 Excerpts

On the theory of reference-dependent preferences

  • A. Munro, R. Sugden
  • Journal of Economic Behavior and Organization
  • 2003

Pygmalion in work organizations: a meta-analysis

  • N. M. Kierein, M. A. Gold
  • Journal of Organizational Behaviour
  • 2000
3 Excerpts

The Pygmalion Effect

  • R. W. Goddard
  • Personnel Journal 64,
  • 1985
1 Excerpt

Similar Papers

Loading similar papers…