Abstract
ABSTRACT Decision-makers overreact to noisy signals and underestimate base rates when predicting regime shift due to system neglect. Based on Construal Level (CL) Theory, I posit that a high CL reduces overreactions in stable and high-noise environments but exacerbates underreactions in unstable and low-noise environments relative to individuals with low CLs. My experimental results support this hypothesis, demonstrating that the interaction between individuals’ mindsets and signals’ properties systematically impact over and underreactions when detecting regime shifts.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
