What’s in a Face? An Experiment on Facial Information and Loan-Approval Decision

Published Online:https://doi.org/10.1287/mnsc.2022.4436

References

  • Addoum JM, Korniotis G, Kumar A (2017) Stature, obesity, and portfolio choice. Management Sci. 63(10):3393–3413.Google Scholar
  • Agarwal S, Alok S, Ghosh P, Gupta S (2020) Financial inclusion and alternate credit scoring for the millennials: Role of big data and machine learning in Fintech. Working paper, National University of Singapore, Singapore.Google Scholar
  • Belot M, Bhaskar V, van de Ven J (2012) Can observers predict trustworthiness? Rev. Econom. Statist. 94(1):246–259.CrossrefGoogle Scholar
  • Björkegren D, Grissen D (2018) The potential of digital credit to bank the poor. AEA Papers Proc. 108:68–71.CrossrefGoogle Scholar
  • Blumenstock J, Cadamuro G, On R (2015) Predicting poverty and wealth from mobile phone metadata. Science 350(6264):1073–1076.CrossrefGoogle Scholar
  • Charness G, Gneezy U (2008) What’s in a name? Anonymity and social distance in dictator and ultimatum games. J. Econom. Behav. Organ. 68(1):29–35.CrossrefGoogle Scholar
  • Chawla NV, Bowyer KW, Hall LO, Kegelmeyer WP (2002) SMOTE: Synthetic minority over-sampling technique. J. Artificial Intelligence Res. 16(June):321–357.CrossrefGoogle Scholar
  • Cogsdill EJ, Todorov AT, Spelke ES, Banaji MR (2014) Inferring character from faces: A developmental study. Psych. Sci. 25(5):1132–1139.CrossrefGoogle Scholar
  • Cowgill B (2020) Bias and productivity in humans and algorithms: Theory and evidence from resume screening. Working paper, Columbia University, New York.Google Scholar
  • DeBruine LM (2002) Facial resemblance enhances trust. Proc. Roy. Soc. London B Biol. Sci. 269(1498):1307–1312.CrossrefGoogle Scholar
  • Du N, Song F, Cadsby CB (2020) You cannot judge a book by its cover: Evidence from a laboratory experiment on recognizing generosity from facial information. Discussion paper 2020-07, University of Guelph, Guelph, Ontario, Canada.Google Scholar
  • Duarte J, Siegel S, Young L (2012) Trust and credit: The role of appearance in peer-to-peer lending. Rev. Financial Stud. 25(8):2455–2484.CrossrefGoogle Scholar
  • Eckel CC, Petrie R (2011) Face value. Amer. Econom. Rev. 101(4):1497–1513.CrossrefGoogle Scholar
  • Fink B, Neave N, Manning JT, Grammer K (2006) Facial symmetry and judgements of attractiveness, health and personality. Personality Individual Differences 41(3):491–499.CrossrefGoogle Scholar
  • Geniole SN, Denson TF, Dixson BJ, Carré JM, McCormick CM(2015) Evidence from meta-analyses of the facial width-to-height ratio as an evolved cue of threat. PLoS One 10(7):e0132726.CrossrefGoogle Scholar
  • Grove WM, Zald DH, Lebow BS, Snitz BE, Nelson C (2000) Clinical versus mechanical prediction: A meta-analysis. Psych. Assessment 12(1):19–30.CrossrefGoogle Scholar
  • Gruber J, Handel BR, Kina SH, Kolstad JT (2020) Managing intelligence: Skilled experts and AI in markets for complex products. NBER Working Paper 27038, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Haselhuhn MP, Wong EM (2012) Bad to the bone: Facial structure predicts unethical behaviour. Proc. Roy. Soc. B Biol. Sci. 279(1728):571–576.Google Scholar
  • He X, Yin H, Zeng Y, Zhang H, Zhao H (2019) Facial structure and achievement drive: Evidence from financial analysts. J. Accounting Res. 57(4):1013–1057.CrossrefGoogle Scholar
  • Hsieh T-S, Kim J-B, Wang RR, Wang Z (2019) Seeing is believing? Executives’ facial trustworthiness, auditor tenure, and audit fees. J. Accounting Econom. 69(1):101260.CrossrefGoogle Scholar
  • Hu A, Ma S (2020) Human interactions and financial investment: A video-based approach. Working paper, Yale University, New Haven, CT.Google Scholar
  • Jaeger B, Evans AM, Stel M, van Beest I (2019) Explaining the persistent influence of facial cues in social decision-making. J. Experiment. Psych. Gen. 148(6):1008–1021.CrossrefGoogle Scholar
  • Jenq C, Pan J, Theseira W (2015) Beauty, weight, and skin color in charitable giving. J. Econom. Behav. Organ. 119(November):234–253.CrossrefGoogle Scholar
  • Jia Y, Van Lent L, Zeng Y (2014) Masculinity, testosterone, and financial misreporting. J. Accounting Res. 52(5):1195–1246.CrossrefGoogle Scholar
  • Jones BC, Little AC, Penton-Voak IS, Tiddeman BP, Burt DM, Perrett DI (2001) Facial symmetry and judgements of apparent health: Support for a ‘good genes’ explanation of the attractiveness–symmetry relationship. Evol. Human Behav. 22(6):417–429.CrossrefGoogle Scholar
  • Kleinberg J, Lakkaraju H, Leskovec J, Ludwig J, Mullainathan S (2017) Human decisions and machine predictions. Quart. J. Econom. 133(1):237–293.CrossrefGoogle Scholar
  • Leder H, Forster M, Gerger G (2011) The glasses stereotype revisited. Swiss J. Psych. 70(4):211–222.CrossrefGoogle Scholar
  • Mast MS, Bangerter A, Bulliard C, Aerni G (2011) How accurate are recruiters’ first impressions of applicants in employment interviews? Internat. J. Selection Assessment 19(2):198–208.CrossrefGoogle Scholar
  • Meehl PE (1954) Clinical vs. Statistical Prediction: A Theoretical Analysis and a Review of the Evidence (University of Minnesota Press, Minneapolis).CrossrefGoogle Scholar
  • Mullainathan S, Obermeyer Z (2022) Diagnosing physician error: A machine learning approach to low-value health care. Quart. J. Econom. 137(2):679–727.Google Scholar
  • Olivola CY, Eubanks DL, Lovelace JB (2014) The many (distinctive) faces of leadership: Inferring leadership domain from facial appearance. Leadership Quart. 25(5):817–834.CrossrefGoogle Scholar
  • Pope DG, Sydnor JR (2011) What’s in a picture? Evidence of discrimination from Prosper.com. J. Human Resources 46(1):53–92.CrossrefGoogle Scholar
  • Porter S, ten Brinke L, Gustaw C (2010) Dangerous decisions: The impact of first impressions of trustworthiness on the evaluation of legal evidence and defendant culpability. Psych. Crime Law 16(6):477–491.CrossrefGoogle Scholar
  • Pound N, Penton-Voak IS, Surridge AK (2009) Testosterone responses to competition in men are related to facial masculinity. Proc. Roy. Soc. B Biol. Sci. 276(1654):153–159.Google Scholar
  • Ravina E (2019) Love & loans: The effect of beauty and personal characteristics in credit markets. Working paper, Federal Reserve Bank of Chicago, Chicago.Google Scholar
  • Re DE, Rule NO (2016a) The big man has a big mouth: Mouth width correlates with perceived leadership ability and actual leadership performance. J. Experiment. Soc. Psych. 63:86–93.CrossrefGoogle Scholar
  • Re DE, Rule NO (2016b) Making a (false) impression: The role of business experience in first impressions of CEO leadership ability. J. Nonverbal Behav. 40(3):235–245.CrossrefGoogle Scholar
  • Rezlescu C, Duchaine B, Olivola CY, Chater N (2012) Unfakeable facial configurations affect strategic choices in trust games with or without information about past behavior. PLoS One 7(3):e34293.CrossrefGoogle Scholar
  • Rosenblat TS (2008) The beauty premium: Physical attractiveness and gender in dictator games. Negotiation J. 24(4):465–481.CrossrefGoogle Scholar
  • Scharlemann JPW, Eckel CC, Kacelnik A, Wilson RK (2001) The value of a smile: Game theory with a human face. J. Econom. Psych. 22(5):617–640.CrossrefGoogle Scholar
  • Sofer C, Dotsch R, Wigboldus DH, Todorov A (2015) What is typical is good: The influence of face typicality on perceived trustworthiness. Psycho. Sci. 26(1):39–47.Google Scholar
  • Stinebrickner R, Stinebrickner T, Sullivan P (2018) Beauty, job tasks, and wages: A new conclusion about employer taste-based discrimination. Rev. Econom. Statist. 101(4):602–615.CrossrefGoogle Scholar
  • Stirrat M, Perrett DI (2010) Valid facial cues to cooperation and trust: Male facial width and trustworthiness. Psych. Sci. 21(3):349–354.CrossrefGoogle Scholar
  • Stirrat M, Perrett DI (2012) Face structure predicts cooperation: Men with wider faces are more generous to their in-group when out-group competition is salient. Psych. Sci. 23(7):718–722.CrossrefGoogle Scholar
  • Todorov A, Olivola CY, Dotsch R, Mende-Siedlecki P (2015) Social attributions from faces: Determinants, consequences, accuracy, and functional significance. Annu. Rev. Psych. 66(1):519–545.CrossrefGoogle Scholar
  • Tsankova E, Kappas A (2016) Facial skin smoothness as an indicator of perceived trustworthiness and related traits. Perception 45(4):400–408.Google Scholar
  • Valentine KA, Li NP, Penke L, Perrett DI (2014) Judging a man by the width of his face: The role of facial ratios and dominance in mate choice at speed-dating events. Psych. Sci. 25(3):806–811.Google Scholar
  • van Binsbergen J, Han X, Lopez-Lira A (2020) Man vs. machine learning: The term structure of earnings expectations and conditional biases. NBER Working Paper 27843, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Welker KM, Bird BM, Arnocky S (2016) Commentary: Facial width-to-height ratio (FWHR) is not associated with adolescent testosterone levels. Front. Psych. 7:1745.Google Scholar
  • Wilson JP, Rule NO (2015) Facial trustworthiness predicts extreme criminal-sentencing outcomes. Psych. Sci. 26(8):1325–1331.CrossrefGoogle Scholar
  • Wong EM, Ormiston ME, Haselhuhn MP (2011) A face only an investor could love: CEOs’ facial structure predicts their firms’ financial performance. Psych. Sci. 22(12):1478–1483.CrossrefGoogle Scholar
  • Yang X (2014) The role of photographs in online peer-to-peer lending behavior. Soc. Behav. Personality 42(3):445–452.CrossrefGoogle Scholar
  • Yates JF, McDaniel LS, Brown ES (1991) Probabilistic forecasts of stock prices and earnings: The hazards of nascent expertise. Organ. Behav. Human Decision Processes 49(1):60–79.CrossrefGoogle Scholar
  • Yeomans M, Shah A, Mullainathan S, Kleinberg J (2019) Making sense of recommendations. J. Behav. Decision Making 32(4):403–414.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.