Articles

A helping hand is hard at work: Help-seekers' underestimation of helpers' effort

D. NEWARK, V. K. BOHNS, F. J. FLYNN

Organizational Behavior and Human Decision Processes

March 2017, vol. 139, pp.18-29

Departments: Management & Human Resources

Keywords: Help effort, Help-seeking, Social judgment, Prosocial behavior, Decision-making

http://www.sciencedirect.com/science/article/pii/S0749597815302004


Whether people seek help depends on their estimations of both the likelihood and the value of getting it.Although past research has carefully examined how accurately help-seekers predict whether their helprequests will be granted, it has failed to examine how accurately help-seekers predict the value of thathelp, should they receive it. In this paper, we focus on how accurately help-seekers predict a key determinantof help value, namely, helper effort. In four studies, we find that (a) helpers put more effort intohelping than help-seekers expect (Studies 1–4); (b) people do not underestimate the effort others willexpend in general, but rather only the effort others will expend helping them (Study 2); and (c) thisunderestimation of help effort stems from help-seekers’ failure to appreciate the discomfort—in particular,the guilt—that helpers would experience if they did not do enough to help (Studies 3 & 4)

A Model of Mental Accounting and Reference Price Adaptation

M. BAUCELLS, W. HWANG

Management Science

December 2017, vol. 63, n°12, pp.4201-4218

Keywords: Mental accounting, reference price, loss aversion, sunk-cost fallacy, payment depreciation, reluctance to trade, flat-rate bias.

http://pubsonline.informs.org/doi/abs/10.1287/mnsc.2016.2569


Consumers possess a mental account that stores the worth of items purchased and yet to be consumed. Reference prices act as the book values of these items. Movements in the account—the comparison between the reference price and the price paid at entry, and the comparison between the benefit of consumption and the reference price at exit—yield hedonic benefits. The reference price is determined by a psychological process of adaptation to the price evoked by the trade. The model is integrative, in that it explains a wide array of observed anomalies such as sunk-cost effects, payment depreciation, reluctance to trade, preference for pre-payment, and the flat-rate bias. The model also generates new testable implications

A multi-cultural study of salespeople's behavior in individual pay-for-performance compensation systems: when managers are more equal and less fair than others

D. ROUZIES, Vincent ONYEMAH, Dawn IACOBUCCI

Journal of Personal Selling & Sales Management

September 2017, vol. 37, n°3, pp.198-212

Departments: Marketing, GREGHEC (CNRS)

Keywords: financial incentives; fairness; salespeople; international compensation; culture

http://www.tandfonline.com/doi/full/10.1080/08853134.2017.1337519


In this research, we examine salespeople’s behavior in individual pay-for-performance compensation systems and show how perceived management fairness seems to energize sales employees in some environments but not in others. We use alarge multicountry database of individual-level remuneration for more than 2,500 salespeople across four B2B industrysectors to demonstrate cultural adaptations of the effect of perceived management fairness. The results indicate that topmanagement should be concerned with employees’ perceptions of fairness in addition to the more typical concerns ofcontrol and motivation widely acknowledged in the microeconomics-based sales-force compensation literature. Inparticular, we show that perceptions of management fairness are key to salespeople’s proportion of total pay generated by pay-for-performance formulas.

Alleviating Managerial Dilemmas In Human-Capital-Intensive Firms Through Incentives: Evidence From M&A Legal Advisors

O. CHATAIN, P. MEYER-DOYLE

Strategic Management Journal

February 2017, vol. 38, pp.232-254

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Human-Capital-Intensive Firms, Human Capital, Managerial Dilemmas, Incentives, Capabilities, Micro-foundations, Mergers and Acquisitions, Law firms

http://ssrn.com/abstract=2693097


We examine how human-capital-intensive firms deploy their human assets and how firm-specific human capital interacts with incentives to influence this deployment. Our empirical context is the UK M&A legal market, where micro-data enable us to observe the allocation of lawyers to M&A mandates under different incentive regimes. We find that law firms actively equalize the workload among their lawyers to seek efficiency gains while ‘stretching’ lawyers with high firm-specific capital to a greater extent. However, lawyers with high firm-specific capital also appear to influence the staffing process in their favor, leading to unbalanced allocations and less sharing of projects and clients. Paradoxically, law firms may adopt a seniority-based rent-sharing system that weakens individual incentives to mitigate the impact of incentive conflicts on resource deployment

An Experience-Utility Explanation of the Preference for Larger Assortments

A. AYDINLI, Y. GU, M. PHAM

International Journal of Research in Marketing

September 2017, vol. 34, n°3, pp.746-760

Departments: Marketing, GREGHEC (CNRS)

Keywords: Assortment size; Affect; Emotion; Consumer decision making

http://www.sciencedirect.com/science/article/pii/S0167811617300526


Although choosing from large assortments has often been found to be demotivating, a robust finding in the marketing literature is that consumers generally prefer larger product assortments. Standard explanations for this preference for larger assortments have focused on reason-based considerations revolving around large assortments enabling potentially “better” choices. This paper offers a different and novel, affect-based explanation. We argue that the relative preference for larger assortments is driven in part by the greater experience utility that consumers derive from reviewing such assortments. Because most products are carriers of positive affect, consumers tend to derive greater experience utility from reviewing larger assortments compared to smaller assortments. Support for this general proposition was found across four experimental studies using different strategies to document the role of affect-based experience utility in driving the preference for larger assortments. Theoretical and substantive implications are discussed


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