When Bad News is Good

44 Pages Posted: 23 Aug 2019

See all articles by Kate Barasz

Kate Barasz

Harvard Business School

Serena Hagerty

Harvard Business School

Date Written: January 16, 2019

Abstract

Six studies investigate when and why bad news is good. When facing a difficult decision (e.g., whether or not to have surgery), people may paradoxically feel better with — and even prefer — objectively worse news (e.g., “you have a severe injury”) versus objectively better news (e.g., “you have a moderate injury,” Studies 1, 2, 3A, 3B). This is because bad news often has the unique effect of guiding people’s actions (e.g., “you must have surgery”) — even when such actions are themselves undesirable and non-preferred (Pretest 1); as such, bad news can enable people to preemptively avoid difficult decisions and thus reduce decisional conflict (Study 4). Significantly, the benefit of bad news may introduce perverse incentives for decision-makers, which are both unanticipated by observers (Pretests 2-4) and which have a range of implications for downstream preferences and behaviors (Study 5).

Keywords: decision conflict, judgment and decision making, difficult decisions, medical decision making, uncertainty

Suggested Citation

Barasz, Kate and Hagerty, Serena, When Bad News is Good (January 16, 2019). Available at SSRN: https://ssrn.com/abstract=3440193 or http://dx.doi.org/10.2139/ssrn.3440193

Kate Barasz (Contact Author)

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Serena Hagerty

Harvard Business School ( email )

Soldiers Field
Boston, MA 02163
United States
6174960479 (Phone)
02163 (Fax)

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