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What is HiPPO Phenomenon

Overcoming Cognitive Biases in Strategic Management and Decision Making
The acronym refers to the idea that the opinions or viewpoints of the highest-paid or most senior individual in a group can heavily influence decision-making, even if their input is not based on data or expertise.
Published in Chapter:
Understanding and Mitigating Authority Bias in Business and Beyond
Duygu Güner Gültekin (T.C. İstanbul University, Turkey)
DOI: 10.4018/979-8-3693-1766-2.ch004
Abstract
The need for authority in society persists, with individuals expected to follow instructions unless in absolute isolation. Epistemic authorities, perceived as having valid knowledge in specific fields, guide peoples' understanding of the world. This includes leaders, experts, and even automated systems, all of whom can influence attitudes and actions. However, blind obedience to authority has detrimental consequences, referred to as “authority bias.” This bias leads people to reflexively follow perceived legitimate authorities, impacting law enforcement, policymaking, business, marketing, and consumer behaviour. It can be triggered by symbols of authority, compelling storytelling, and charismatic figures. Today, it extends to non-human entities such as algorithms and robots, raising questions about their role in decision-making. Mitigation strategies include introducing conflicting authorities and empowering junior employees to challenge opinions with data.
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