Stereotypes and Belief Updating

Katherine B. Coffman; Manuela  Collis; Leena  Kulkarni

Working Paper | HBS Working Paper Series | 2019

Stereotypes and Belief Updating

by Katherine B. Coffman, Manuela Collis and Leena Kulkarni

Abstract

We explore how beliefs respond to noisy information about own ability across a range of tasks, with a particular focus on how gender stereotypes impact belief updating. Participants in our experiments take tests of their ability across different domains. Absent feedback, beliefs of own ability are strongly influenced by gender stereotypes. We then provide noisy feedback about own absolute performance to participants and elicit posterior beliefs. Gender stereotypes have significant predictive power for posterior beliefs, both through their influence on prior beliefs (as predicted by a Bayesian model) and through their influence on updating. Both men and women’s beliefs are more responsive to information in gender congruent domains than gender incongruent domains. This is primarily driven by differential reactions to exogenously received good news about own ability: both men and women react more to good news when it arrives in a gender congruent domain than when it arrives in a gender incongruent domain. Our results have important implications for understanding how feedback shapes gender gaps in self-assessments.

Keywords: beliefs; Gender; Prejudice and Bias; Information; Performance; Perception;

Language: English

Format: Print

51 pages

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Citation:

Coffman, Katherine B., Manuela Collis, and Leena Kulkarni. "Stereotypes and Belief Updating." Harvard Business School Working Paper, No. 19-068, January 2019.

We conduct laboratory experiments that explore how gender stereotypes shape beliefs about ability of oneself and others in different categories of knowledge. The data reveal two patterns. First, men’s and women’s beliefs about both oneself and others exceed observed ability on average, particularly in difficult tasks. Second, overestimation of ability by both men and women varies across categories. To understand these patterns, we develop a model that separates gender stereotypes from misestimation of ability related to the difficulty of the task. We find that stereotypes contribute to gender gaps in self-confidence, assessments of others, and behavior in a cooperative game.

We run an experiment that features a novel task with deliberation to explore how stereotypes shape group decision-making. We find that women are less likely to be rewarded for their ideas in male-typed domains when gender is known. This is partly due to discrimination and partly due to differences in self-promotion. External analysis of the chat data provides further insights. Though men and women do not vary in their communication styles, coders display pervasive stereotypes, associating warmth with women and competence and negativity with men. We also find that warmer participants, particularly warmer women, are under-rewarded by their groups.

This case follows Amira Rashad as she founds BulkWhiz, a Dubai-based buy-in-bulk grocery delivery platform. Following its launch in September 2017, BulkWhiz experiences rapid growth of 30 percent per month in the United Arab Emirates. Despite this initial success, Rashad finds herself at a critical juncture just nine months later, with a number of internal and external negotiations awaiting her. First, she is eager to convince her Chief Technology Officer to come on-board full-time, and needs to finalize details on his transition and compensation. Second, she is wrestling with how to expand her business beyond the UAE market. Finally, she is seeking series A fundraising, to fuel the company’s growth. How should she approach and sequence these negotiations, and what obstacles might loom?

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Stereotypes and Belief Updating

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