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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...
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Hussam, Reshmaan, Erin M. Kelley, Gregory Lane, and Fatima Zahra. "The Psychosocial Impacts of Forced Idleness." Working Paper, January 2021.
- 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...
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Kirgios, Erika L., Edward H. Chang, and Katherine L. Milkman. "Going It Alone: Competition Increases the Attractiveness of Minority Status." Organizational Behavior and Human Decision Processes 161 (November 2020): 20–33.
- 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...
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Keywords:
Employee Furloughs;
Ceo Pay Cuts;
Pay Ratios;
Purchase Intention;
Health Pandemics;
Employees;
Wages;
Executive Compensation;
Consumer Behavior
Mohan, Bhavya, Serena Hagerty, and Michael Norton. "Consumers Punish Firms that Cut Employee Pay in Response to COVID-19." Harvard Business School Working Paper, No. 21-020, August 2020.
- 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...
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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
Acemoglu, Daron, Ali Cheema, Asim I. Khwaja, and James A. Robinson. "Trust in State and Non-State Actors: Evidence from Dispute Resolution in Pakistan." Journal of Political Economy 128, no. 8 (August 2020): 3090–3147.
- 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...
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Lu, J., J. Lee, F. Gino, and A. Galinsky. "Air Pollution, State Anxiety, and Unethical Behavior: A Meta-Analytic Review." Psychological Science 31, no. 6 (June 2020): 748–755.
- 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...
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Keywords:
Behavior And Behavioral Decision Making;
Organizational Studies;
Decision Analysis;
Economics;
Decision Making;
Behavior;
Analysis;
Organizations;
Diversity;
Gender
Chang, Edward H., Erika L. Kirgios, Aneesh Rai, and Katherine L. Milkman. "The Isolated Choice Effect and Its Implications for Gender Diversity in Organizations." Management Science 66, no. 6 (June 2020): 2752–2761.
- 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...
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Keywords:
Foreign Direct Investment;
Developing Countries and Economies;
Financial Condition;
Development Economics
Alfaro, Laura, and Jasmina Chauvin. "Foreign Direct Investment, Finance and Economic Development." In Encyclopedia of International Economics and Global Trade, Vol. 1: Foreign Direct Investment and the Multinational Enterprise, edited by Mariana Spatareanu, 231–258. World Scientific, 2020.
- 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...
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Keywords:
Emotion;
Emotion Contagion;
Digital Media;
Social Media;
Emotions;
Media;
Online Technology;
Measurement and Metrics
Goldenberg, Amit, and James J. Gross. "Digital Emotion Contagion." Trends in Cognitive Sciences 24, no. 4 (April 2020): 316–328.
- 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...
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Joshi, Priyanka D., Cheryl J. Wakslak, Gil Appel, and Laura Huang. "Gender Differences in Communicative Abstraction." Journal of Personality and Social Psychology 118, no. 3 (March 2020): 417–435.
- 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...
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Keywords:
Choice;
Purchase Intent;
Privacy;
Privacy Notices;
Warnings;
Assurances;
Information Disclosure;
Trust;
Consumer Behavior;
Spending;
Decisions;
Information;
Communication
Brough, Aaron R., David A. Norton, and Leslie John. "The Bulletproof Glass Effect: When Privacy Notices Backfire." Harvard Business School Working Paper, No. 20-089, February 2020.
- 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...
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Keywords:
Brand Selfie;
Photo-taking;
Self-perception;
Self-inferences;
Self-brand Connection;
Brands and Branding;
Consumer Behavior;
Perception
Hofstetter, Reto, Gabriela Kunath, and Leslie K. John. "From Sweetheart to Scapegoat: Brand Selfie-Taking Shapes Consumer Behavior." Harvard Business School Working Paper, No. 20-085, February 2020.
- 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...
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Keywords:
Consumer Credit;
Financial Intermediaries;
Credit;
Information;
Competition;
Credit Cards;
Financial Institutions
Foley, C. Fritz, Agustin Hurtado, Andres Liberman, and Alberto Sepulveda. "The Effects of Information on Credit Market Competition: Evidence from Credit Cards." Working Paper, February 2020.
- 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...
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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
Battilana, Julie, Ruth Costas, Marissa Kimsey, and Priscilla Zogbi. "Terra Nova: A Social Business Trying to Unlock Land Rights for the Urban Poor in Brazil." Harvard Business School Case 420-092, January 2020.
- 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...
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Keywords:
Signaling;
Morality;
Trustworthiness;
Anger;
Third-party Punishment;
Moral Sensibility;
Behavior;
Trust;
Reputation
Jordan, Jillian J., and David G. Rand. "Signaling When Nobody Is Watching: A Reputation Heuristics Account of Outrage and Punishment in One-shot Anonymous Interactions." Journal of Personality and Social Psychology 118, no. 1 (January 2020).
- 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...
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Keywords:
Consultants;
Benchmarking;
Incentive Pay;
Executive Compensation;
Complexity;
Motivation and Incentives;
Governance
Murphy, Kevin J., and Tatiana Sandino. "Compensation Consultants and the Level, Composition, and Complexity of CEO Pay." Accounting Review 95, no. 1 (January 2020): 311–341.
- 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...
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Keywords:
Career;
Promotions;
Socialization;
Networking;
Gender;
Personal Development and Career;
Wages;
Social and Collaborative Networks
Cullen, Zoë B., and Ricardo Perez-Truglia. "The Old Boys' Club: Schmoozing and the Gender Gap." Working Paper.
- 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...
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Keywords:
Consumer Empowerment;
Procedural Justice;
Promises;
Customer Relationship Management;
Voting;
Perception;
Fairness;
Risk Management
Kim, Tami, Leslie John, Todd Rogers, and Michael I. Norton. "Procedural Justice and the Risks of Consumer Voting." Management Science 65, no. 11 (November 2019): 5234–5251.
- 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.,...
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Keywords:
Directing Controls;
Misreporting;
Mission Statements;
Participative Budgeting;
Stewardship Theory;
Systems Of Management Controls;
Management Systems;
Governance Controls;
Mission and Purpose;
Financial Reporting
Deore, Aishwarrya, Susanna Gallani, and Ranjani Krishnan. "The Effect of Systems of Management Controls on Misreporting." Harvard Business School Working Paper, No. 20-053, October 2019.
- 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...
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Ghosh, Shikhar, and Marilyn Morgan Westner. "Unifying Divisions: Loop's Mission to Preserve the Planet." Harvard Business School Case 820-032, August 2019. (Revised July 2020.)
- 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...
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Keywords:
Knowledge Consumption;
Consumption Of Learning;
Judgment Of Knowledge;
Feeling Ofknowing;
Confidence In Knowledge;
Wysiati;
Fonkia;
Knowledge Acquisition;
Learning;
Perception
Yang, Haiyang, Ziv Carmon, Dan Ariely, and Michael I. Norton. "The Feeling of Not Knowing It All." Journal of Consumer Psychology 29, no. 3 (July 2019): 455–462.