Skip to main content

January 27, 2018

From Journal of Economic Behavior & Organization:
This paper utilizes a high frequency dataset on taxi rides in New York City to investigate how emotions due to sporting event outcomes affect passengers’ tipping behavior. I formulate and empirically test a reference-dependent preferences framework of tipping behavior. The results indicate that the tipping amounts are driven by deviations from expectations much more so than wins and losses, with the most salient effects found under unexpected close wins. However, there is no support for loss aversion. The findings suggest that loss averse behavior may be subdued in the presence of social norms while surprises can result in freedom on the upside of tipping.

From Management Science:
The majority of extant studies involving status argue that status enters into choice and evaluation because people personally believe that status serves as a signal of quality. However, this mechanism seems less plausible in cases when consensus on the meaning of quality is lacking. To understand how and why status often nonetheless enters into evaluation in those cases, this paper contributes to a growing body of work that proposes that individuals and organizations are particularly likely to base their choices and evaluations on status when they are concerned with the reactions of others. We provide an empirical test of this argument by analyzing how the sales gap between prizewinning books and their shortlisted-only peers (as well as a second similar-content control group) changes during the December holidays, when the purchase of books as gifts increases relative to purchases for one’s own personal use. Results show that the sales gap widens with the increased orientation toward gift giving, consistent with our theoretical arguments about how attending to audience reactions drives the use of status. Analyses of two online experiments allow for further clarification of the mechanism behind our findings.

From Social Psychology:
We examined the relationship between cognitive style, empathy, and willingness to help. In Study 1 (N = 186), we measured preference for visuospatial or verbal cognitive style using the ZenQ (Zenhausern, 1978), and empathy using the Interpersonal Reactivity Index (Davis, 1983). In Study 2 (N = 76), we experimentally elicited verbal or visual cognitive processing via priming and measured empathy in response to a vignette about a woman injured in a car accident. In both studies, we measured willingness to help by assessing participants’ willingness to assist the injured woman. Results showed that visuospatial cognitive processing increased empathy and willingness to help. Empathic concern mediated the relationship between cognitive style and willingness to help. Results highlight the importance of mental imagery in increasing empathy and helping.

From The Economist:
Firms can no longer spout platitudes about corporate “values”; independent watchdogs and staff stand ready to brand discrepancies as hypocrisy.

From The Economist:
Anticipating changes to political and social norms is hard. But it is a vital part of the CEO’s job description.

Comments

Post a Comment

Popular posts from this blog

February 24, 2018

From The New York Times : We are willing to pay a premium for convenience, of course — more than we often realize we are willing to pay. During the late 1990s, for example, technologies of music distribution like Napster made it possible to get music online at no cost, and lots of people availed themselves of the option. But though it remains easy to get music free, no one really does it anymore. Why? Because the introduction of the iTunes store in 2003 made buying music even more convenient than illegally downloading it. Convenient beat out free. As task after task becomes easier, the growing expectation of convenience exerts a pressure on everything else to be easy or get left behind. We are spoiled by immediacy and become annoyed by tasks that remain at the old level of effort and time. When you can skip the line and buy concert tickets on your phone, waiting in line to vote in an election is irritating. This is especially true for those who have never had to wait in lines (whic...
Post a Comment
Read more

January 30

From  University of Virginia Working Paper : This paper studies how collecting offender DNA profiles affects offenders’ later recidivism and likelihood of getting caught by exploiting a large expansion of Denmark’s DNA database. We find that DNA profiling increases detection probability and reduces recidivism within the following year by as much as 43%. We estimate the elasticity of criminal behavior with respect to the probability of detection to be -1.7, implying that a 1% higher detection probability reduces crime by almost 2%. We also find that DNA profiling changes non-criminal behavior: profiled offenders are more likely to engage in a stable relationship, and live with their children. From Iris Murdoch : Every book is the wreck of a perfect idea. From  Iris Murdoch : I think being a woman is like being Irish... Everyone says you're important and nice, but you take second place all the time. From  Iris Murdoch : Of course reading and thinking are impor...
Post a Comment
Read more

February 26, 2018

From The Economist : An equity is a claim on the assets and the profits of a firm; a bond entitles the investor to a series of interest payments and repayment on maturity. Bitcoin brings no cashflows to the owner; the only return will come via a rise in price. When there is no obvious way of valuing an asset, it is hard to say that one target price is less likely than another. Bitcoin could be worth $10 or $100,000. One argument made by bitcoinnoisseurs is that it is a type of “digital gold”. Stores of value are supposed to keep their value; bitcoin, by contrast, is extremely volatile. Its code ensures that no more than 21m coins can ever be created; that sets bitcoin apart from fiat money, which central banks can create at will. Yet being limited in supply is a necessary, but not sufficient, condition for having value; signed photographs of Economist journalists are rare but, sadly, of negligible worth. Nor is supply really limited. Plenty of other cryptocurrencies exist. If the...
Post a Comment
Read more