DRINKING YOUR OWN KOOL-AID: SELF-DECEPTION, DECEPTION CUES AND PERSUASION IN MEETINGS JEREMIAH W. BENTLEY University of Massachusetts Amherst ROBERT J. BLOOMFIELD† Cornell University SHAI DAVIDAI* Princeton University MELISSA J. FERGUSON* Cornell University April 2016 We thank Abigail Allen, Mary Kate Dodgson, Michael Durney, Scott Emett, Steve Kachelmeier, Bob Libby, Eldar Maksymov, Patrick Martin (MAS Discussant), Mark Nelson, Ivo Tafkov (AAA Discussant), and workshop participants at the AAA Annual Meeting, the Brigham Young University Accounting Symposium, Cornell University, the LEMA group at Penn State, the Managerial Accounting Section Mid-Year Meeting, the University of Massachusetts Amherst, and the University of Michigan for their helpful comments and suggestions. †Corresponding author: Johnson Graduate School of Management, Cornell University, Ithaca, NY 14850. Email:
[email protected] *Joined the paper after the first two authors had written a manuscript based on experiment 1. All four authors contributed equally to the development of the paper from that point. DRINKING YOUR OWN KOOL-AID: SELF-DECEPTION, DECEPTION CUES AND PERSUASION IN MEETINGS Abstract: Two experiments show that face-to-face meetings help users discern reporters' true beliefs better than those who receive only a written report. Both experiments are based on a 'cheap talk' setting, modified to include two features common to accounting settings: reporters base reports on rich information, and (in a meeting condition) have rich channels of communication to users. Experiment 1 shows that meetings improve users' ability to discern the beliefs reporters held before they had an incentive to deceive the user. Once reporters learned of their incentive to deceive users, they revised their beliefs toward what they wanted users to believe (they self-deceived); those who revised more were more successful in their deception.