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Building Reputation in Groups: Attribution Biases and Strategic Responses

Objective

Most major economic, political, and creative outcomes arise from collective decisions rather than individual actions. Committees, research teams, firms, and artistic collaborations all produce outcomes that observers must interpret when assigning credit and blame to individual participants. This proposal investigates how reputations are built within such groups — and how systematic misperceptions in this collective inference problem shape incentives, power, and efficiency.
The project combines theory and experiments to analyze how audiences’ beliefs about group decision rules influence behavior within and across teams. Section 1 develops a model of group communication in which actual versus perceived power over group decisions jointly determine reputational outcomes, effort incentives, and project selection. Section 2 tests these mechanisms experimentally, documenting systematic biases in how collective decisions are interpreted and how informal deliberation distorts formal rules. Section 3 extends the analysis to group formation, showing how reputational externalities inherent to biases in the collective inference problem can endogenously generate inefficient collaboration patterns and talent allocation.
Together, these studies build a unified theory of how reputational dynamics operate in collective environments, showing how misperceptions of power and responsibility shape real outcomes in organizations, and offering a blueprint for designing institutions that foster efficient, accountable collaboration.

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Programme(s)

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Topic(s)

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Funding Scheme

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HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2026-STG

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Host institution

LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 499 816,00
Address
Houghton Street 1
WC2A 2AE London
United Kingdom

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Region
London Inner London — West Westminster
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 499 816,00

Beneficiaries (1)