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  • 2021
  • Working Paper

The Psychosocial Impacts of Forced Idleness
By: Reshmaan Hussam, Erin M. Kelley, Gregory Lane and Fatima Zahra
Social scientists have long posited that employment may deliver psychological utility beyond the value of income alone. Existing literature, however, suffers from problems of selection into employment and an inability to disentangle the pecuniary and non-pecuniary...  View Details
Keywords: Psychosocial Wellbeing; Employment; Refugees; Social Psychology; Well-being
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  • Article

Going It Alone: Competition Increases the Attractiveness of Minority Status
By: Erika L. Kirgios, Edward H. Chang and Katherine L. Milkman
Past research demonstrates that people prefer to affiliate with others who resemble them demographically. However, we posit that when competing for scarce opportunities, strategic considerations moderate the strength of this tendency toward homophily. Across six...  View Details
Keywords: Homophily; Group Selection; Diversity; Gender; Race; Competition
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  • 2020
  • Working Paper

Consumers Punish Firms that Cut Employee Pay in Response to COVID-19
By: Bhavya Mohan, Serena Hagerty and Michael Norton
Two experiments, including one incentive compatible study, examine the impact of cutting pay for executives versus employees in response to COVID-19 on consumer behavior. Study 1 explores the effect of announcing cuts or no cuts to CEO and employee pay, and shows that...  View Details
Keywords: Employee Furloughs; Ceo Pay Cuts; Pay Ratios; Purchase Intention; Health Pandemics; Employees; Wages; Executive Compensation; Consumer Behavior
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  • August 2020
  • Article

Trust in State and Non-State Actors: Evidence from Dispute Resolution in Pakistan
By: Daron Acemoglu, Ali Cheema, Asim I. Khwaja and James A. Robinson
Lack of trust in state institutions is a pervasive problem in many developing countries. This paper investigates whether information about improved public services can help build trust in state institutions and move people away from non-state actors. We find that...  View Details
Keywords: Dispute Resolution; Lab-in-the-field Games; Legitimacy; Motivated Reasoning; Non-state Actors; State Capacity; Trust; Conflict and Resolution; Information; Developing Countries and Economies
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  • June 2020
  • Article

Air Pollution, State Anxiety, and Unethical Behavior: A Meta-Analytic Review
By: J Lu, J. Lee, F. Gino and A. Galinsky
Lu, Lee, Gino, and Galinsky (2018) reported four studies demonstrating that air pollution predicted unethical behavior and that one mediating mechanism was state anxiety. In contrast, Heck and colleagues reported two null-effect studies on air pollution, trait...  View Details
Keywords: State Anxiety; Pollution; Behavior; Moral Sensibility; Analysis
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  • June 2020
  • Article

The Isolated Choice Effect and Its Implications for Gender Diversity in Organizations
By: Edward H. Chang, Erika L. Kirgios, Aneesh Rai and Katherine L. Milkman
We highlight a feature of personnel selection decisions that can influence the gender diversity of groups and teams. Specifically, we show that people are less likely to choose candidates whose gender would increase group diversity when making personnel selections in...  View Details
Keywords: Behavior And Behavioral Decision Making; Organizational Studies; Decision Analysis; Economics; Decision Making; Behavior; Analysis; Organizations; Diversity; Gender
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  • 2020
  • Chapter

Foreign Direct Investment, Finance and Economic Development
By: Laura Alfaro and Jasmina Chauvin
Research has sought to understand how foreign direct investment affects host economies. This paper reviews the empirical literature, specifically addressing the question: How does FDI affect economic development of host countries and what is the role of local financial...  View Details
Keywords: Foreign Direct Investment; Developing Countries and Economies; Financial Condition; Development Economics
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  • April 2020
  • Article

Digital Emotion Contagion
By: Amit Goldenberg and James J. Gross
People spend considerable time on digital media, and during this time they are often exposed to others’ emotion expressions. This exposure can lead their own emotion expressions to become more like others’ emotion expressions, a process we refer to as digital emotion...  View Details
Keywords: Emotion; Emotion Contagion; Digital Media; Social Media; Emotions; Media; Online Technology; Measurement and Metrics
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  • March 2020
  • Article

Gender Differences in Communicative Abstraction
By: Priyanka D. Joshi, Cheryl J. Wakslak, Gil Appel and Laura Huang
Drawing on construal level theory, which suggests that experiencing a communicative audience as proximal rather than distal leads speakers to frame messages more concretely, we examine gender difference in linguistic abstraction. In a meta-analysis of prior studies...  View Details
Keywords: Construal Level Theory; Psychological Distance; Gender; Communication; Leadership
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  • 2020
  • Working Paper

The Bulletproof Glass Effect: When Privacy Notices Backfire
By: Aaron R. Brough, David A. Norton and Leslie John
Firms typically provide assurances to consumers about data management practices in the form of privacy notices. This manuscript proposes that ironically, such assurances can fuel rather than alleviate privacy concerns. Indeed, we show that consumers react to assurances...  View Details
Keywords: Choice; Purchase Intent; Privacy; Privacy Notices; Warnings; Assurances; Information Disclosure; Trust; Consumer Behavior; Spending; Decisions; Information; Communication
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  • 2020
  • Working Paper

From Sweetheart to Scapegoat: Brand Selfie-Taking Shapes Consumer Behavior
By: Reto Hofstetter, Gabriela Kunath and Leslie K. John
Increasingly, consumers are taking self-photos and marketers, eager to capitalize on this trend, have been asking consumers to take self-photos with brands (i.e., brand selfies). We suggest that consumer compliance with such requests sparks a self-inferential process...  View Details
Keywords: Brand Selfie; Photo-taking; Self-perception; Self-inferences; Self-brand Connection; Brands and Branding; Consumer Behavior; Perception
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  • 2020
  • Working Paper

The Effects of Information on Credit Market Competition: Evidence from Credit Cards
By: C. Fritz Foley, Agustin Hurtado, Andres Liberman and Alberto Sepulveda
We show empirically that public credit information increases competition in credit markets. We access data that cover all credit card borrowers in Chile and include details about relationship borrowers have with each lender. We exploit a natural experiment whereby a...  View Details
Keywords: Consumer Credit; Financial Intermediaries; Credit; Information; Competition; Credit Cards; Financial Institutions
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  • January 2020
  • Case

Terra Nova: A Social Business Trying to Unlock Land Rights for the Urban Poor in Brazil
By: Julie Battilana, Ruth Costas, Marissa Kimsey and Priscilla Zogbi
Brothers André and Daniel Albuquerque founded the company Terra Nova in 2001 to mediate land disputes between poor families illegally living in urban areas and the official landowners—with the aspiration to improve the lives of the poor. A business-led approach to the...  View Details
Keywords: Mission and Purpose; Social Enterprise; Entrepreneurship; Negotiation; Power and Influence; Social Issues; Conflict and Resolution; Business and Government Relations; Infrastructure; Urban Development; Real Estate Industry; Brazil; Latin America
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  • Article

Signaling When Nobody Is Watching: A Reputation Heuristics Account of Outrage and Punishment in One-shot Anonymous Interactions
By: Jillian J. Jordan and David G. Rand
Moralistic punishment can confer reputation benefits by signaling trustworthiness to observers. However, why do people punish even when nobody is watching? We argue that people often rely on the heuristic that reputation is typically at stake, such that reputation...  View Details
Keywords: Signaling; Morality; Trustworthiness; Anger; Third-party Punishment; Moral Sensibility; Behavior; Trust; Reputation
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  • January 2020
  • Article

Compensation Consultants and the Level, Composition, and Complexity of CEO Pay
By: Kevin J. Murphy and Tatiana Sandino
We provide fresh evidence regarding the relation between compensation consultants and CEO pay. First, firms that employ consultants have higher-paid CEOs—this result is robust to firm fixed effects and matching on economic and governance variables. Second, while this...  View Details
Keywords: Consultants; Benchmarking; Incentive Pay; Executive Compensation; Complexity; Motivation and Incentives; Governance
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  • 2020
  • Working Paper

The Old Boys' Club: Schmoozing and the Gender Gap
By: Zoë B. Cullen and Ricardo Perez-Truglia
Offices are social places. Employees and managers take coffee breaks together, go to lunch, hang out over drinks, and talk about family and hobbies. In this study, we provide evidence that employees’ social interactions with their managers can be advantageous for their...  View Details
Keywords: Career; Promotions; Socialization; Networking; Gender; Personal Development and Career; Wages; Social and Collaborative Networks
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  • November 2019
  • Article

Procedural Justice and the Risks of Consumer Voting
By: Tami Kim, Leslie John, Todd Rogers and Michael I. Norton
Firms are increasingly giving consumers the vote. Eight studies demonstrate that when firms empower consumers to vote, consumers infer a series of implicit promises—even in the absence of explicit promises. We identify three implicit promises to which consumers react...  View Details
Keywords: Consumer Empowerment; Procedural Justice; Promises; Customer Relationship Management; Voting; Perception; Fairness; Risk Management
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  • 2019
  • Working Paper

The Effect of Systems of Management Controls on Misreporting
By: Aishwarrya Deore, Susanna Gallani and Ranjani Krishnan
Organizations use systems of controls to encourage goal congruent employee behavior. Some control instruments within the system (e.g., cultural controls) guide employees and align their behavioral choices with organizational values, while other instruments (e.g.,...  View Details
Keywords: Directing Controls; Misreporting; Mission Statements; Participative Budgeting; Stewardship Theory; Systems Of Management Controls; Management Systems; Governance Controls; Mission and Purpose; Financial Reporting
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  • August 2019 (Revised July 2020)
  • Case

Unifying Divisions: Loop's Mission to Preserve the Planet
By: Shikhar Ghosh and Marilyn Morgan Westner
The case focuses on the initial startup team and Founders’ agreements. In March 2018, Sanchali Pal proposed renegotiating the informal founders’ agreement and equity split she and her co-founders had drafted the previous spring. They had been working together for over...  View Details
Keywords: Founders' Agreements; Business Startups; Climate Change; Conflict Management
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  • Article

The Feeling of Not Knowing It All
By: Haiyang Yang, Ziv Carmon, Dan Ariely and Michael I. Norton
How do consumers assess their mastery of knowledge they have learned? We explore this question by investigating a common knowledge consumption situation: encountering opportunities for further learning. We argue and show that such opportunities can trigger a...  View Details
Keywords: Knowledge Consumption; Consumption Of Learning; Judgment Of Knowledge; Feeling Ofknowing; Confidence In Knowledge; Wysiati; Fonkia; Knowledge Acquisition; Learning; Perception
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