Negotiation, Organizations & Markets
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- 2022
- Working Paper
Shared Models in Networks, Organizations, and Groups
By: Joshua Schwartzstein and Adi SunderamWhy did the market rise yesterday? What are the implications of the latest school shooting? Why did a particular employee get promoted? To answer such questions, we often exchange models, stories, narratives, and interpretations with others. This paper provides a framework for thinking about such social exchanges of models. The key assumption, following Schwartzstein and Sunderam (2021), is that when people are exposed to multiple interpretations they adopt the one that best explains the data. A key implication is that within a network interpretations evolve. This evolution driven by social learning hardens reactions to data that are open to interpretation: following the exchange of models, people are more convinced they are able to explain the data. For certain network structures, we show that social learning also mutes reactions to data that are open to interpretation: the exchange of models leaves beliefs closer to priors than they were before. Beyond studying fixed networks, we also consider how firm managers, politicians, and other agents are able to influence patterns of communication to their advantage. Agents who benefit from the status quo or broadly shared understandings will encourage a robust exchange of interpretations; agents who instead want new data to change behaviors will try to limit the exchange of interpretations, especially interpretations that suggest the data are not surprising. We apply the framework to consider sustained disagreement in the face of new information in financial markets and social networks, as well as the goal and structure of meetings in organizations.
- 2022
- Working Paper
Shared Models in Networks, Organizations, and Groups
By: Joshua Schwartzstein and Adi SunderamWhy did the market rise yesterday? What are the implications of the latest school shooting? Why did a particular employee get promoted? To answer such questions, we often exchange models, stories, narratives, and interpretations with others. This paper provides a framework for thinking about such social exchanges of models. The key assumption,...
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- October 17, 2022
- Article
Relational Diversity in Social Portfolios Predicts Well-Being
We document a link between the relational diversity of one’s social portfolio—the richness and evenness of relationship types across one’s social interactions—and well-being. Across four distinct samples, respondents from the United States who completed a preregistered survey (n = 578), respondents to the American Time Use Survey (n = 19,197), respondents to the World Health Organization’s Study on Global Aging and Adult Health (n = 10,447), and users of a French mobile application (n = 21,644), specification curve analyses show that the positive relationship between social portfolio diversity and well-being is robust across different metrics of well-being, different categorizations of relationship types, and the inclusion of a wide range of covariates. Over and above people’s total amount of social interaction and the diversity of activities they engage in, the relational diversity of their social portfolio is a unique predictor of well-being, both between individuals and within individuals over time.
- October 17, 2022
- Article
Relational Diversity in Social Portfolios Predicts Well-Being
We document a link between the relational diversity of one’s social portfolio—the richness and evenness of relationship types across one’s social interactions—and well-being. Across four distinct samples, respondents from the United States who completed a preregistered survey (n = 578), respondents to the American Time Use Survey (n = 19,197),...
About the Unit
The NOM Unit seeks to understand and improve the design and management of systems in which people make decisions: that is, design and management of negotiations, organizations, and markets. In addition, members of the group share an abiding interest in the micro foundations of these phenomena.
Our work is grounded in the power of strategic interaction to encourage individuals and organizations to create and sustain value (in negotiations, in organizations, and in markets). We explore these interactions through diverse approaches: Although many of us have training in economics, we also have members with backgrounds in social psychology, sociology, and law.
NOM seeks to apply rigorous scientific methods to real-world problems -- producing research and pedagogy that is compelling to both the academy and practitioners.
Recent Publications
Jon Fortt: The Art of Debate and Effective Communication
- November 2022 |
- Case |
- Faculty Research
Juno (A), (B), and (C): Leveraging Student Power
- November 2022 |
- Teaching Note |
- Faculty Research
Shared Models in Networks, Organizations, and Groups
- 2022 |
- Working Paper |
- Faculty Research
Managing Science Communication at Bayer
- October 2022 |
- Teaching Note |
- Faculty Research
Relational Diversity in Social Portfolios Predicts Well-Being
- October 17, 2022 |
- Article |
- Proceedings of the National Academy of Sciences
Shanty Real Estate: Confidential Information for iBuyer 1
- October 2022 |
- Exercise |
- Faculty Research
Shanty Real Estate: Confidential Information for Homebuyer 1
- October 2022 |
- Exercise |
- Faculty Research
Shanty Real Estate: Confidential Information for Homebuyer 2
- October 2022 |
- Exercise |
- Faculty Research