Employees are often assigned tasks comprising an idea generation phase followed by an idea implementation phase. Furthermore, it is common for supervisors to give feedback to their employees during this process. Giving feedback involves the following trade-off: while honest feedback encourages employees to discard bad ideas, it can also be demotivating. We derive results on how the agent's self-confidence influences the supervisor's feedback and her performance. First, the supervisor only gives honest feedback to agents who believe in their ability to succeed. Second, receiving honest feedback leads such high self-opinion agents to succeed more frequently. Third, overconfidence is potentially welfare improving. Our results suggest that reducing the gender confidence gap through confidence-building of women can increase welfare and improve performance.
Ayush Pant,
