Justice and Fairness in Negotiation

In this special issue we display a variety of approaches to the study of justice. Articles from scholars working on questions involving justice and fairness in decision making exchanges calls attention to variety of research approaches, issue domains, cases and hypotheses used to explore these questions. All of the contributions emphasize analysis, using quantitative and qualitative methods including simulation-experiments, comparative case studies, statistical analyses and game theory. The articles in this collection reveal that justice and fairness concerns extend from the negotiation process to the outcome and into the implementation stage. They share the underlying expectation that individuals and groups gravitate toward fairness and justice in their exchanges with others. Therefore, a full understanding of group decision processes will be incomplete if justice and fairness issues are not considered alongside issues such as power distributions and alternatives to an agreement. The authors also suggest that outcomes built on justice and fairness principles will enhance the efficiency, stability and implementation of the negotiated agreements.     

An Olympic legacy for all? The non-infrastructural outcomes of the Olympic Games for socially excluded groups (Atlanta 1996-Beijing 2008)

The use of mega sporting events to achieve social goals for socially excluded groups is heavily contested. Comparative evidence regarding the effects of the Olympic Games for these groups is scarce, and there is an even greater dearth of studies focusing on non-infrastructural programmes (such as sport participation initiatives, volunteering opportunities, training and employment schemes). This study identifies planning principles that allow for the development of such non-infrastructural benefits for socially excluded groups in host cities, and reviews their application in recent Olympic Games.This study examines data from 7 Olympic cities (Atlanta, Nagano, Sydney, Salt Lake City, Athens, Turin and Beijing). It shows that the Olympic Games generally bring few benefits for socially excluded groups, although these benefits are often important justifications in the bidding stage. The study highlights the growing importance placed by the International Olympic Committee on environmental sustainability, and proposes a similar emphasis on social sustainability.     

Market-Making in the Third Market for NYSE-Listed Securities

This paper empirically examines market making in the third market for common stocks that are listed on the NYSE. Although the same non-NYSE members make a market on both types of stocks, bid-ask spreads are wider on Rule 19c-3 stocks than on Rule 390 stocks. Market-making by NYSE members is minimal and spreads posted by NYSE members are wider than those posted on identical stocks by non-NYSE members. This suggests that NYSE members do not compete on the basis of spread but use methods such as price matching and the internalization of orders to attract order flow to the third market.     

A Solution Methodology for Probabilistic Capital Budgeting Problems Using Complex Utility Functions

Historically, the study of economic equipment replacement is primarily limited to that of a single machine or a single machining system. The replacement situation whereby machines under consideration are part of a large integrated system has received little attention. This paper proposes a framework, for the analysis of multiple-machine replacement within an integrated system context. The major difficulty of analyzing such a problem lies in the interactive nature of an integrated system; that is, how should the effects to the entire system be assessed as a result of alterations to one or more of its components. The emphasis of this work is on the issues regarding multiple machine replacement. A single-period model is utilized in order to simplify the presentation. A comprehensive example is also provided for illustration.     

How Do Playful People Play? Gendered and Racial Leisure Perspectives,Motives, and Preferences of College Students

Playfulness is an aspect of personality that predisposes individuals to reframe boring situations into more amusing ones for themselves. This study extends knowledge about the playfulness construct by contrasting college students who were high or low in playfulness relative to the activity preferences they make, the motives they have, and their perspectives on their leisure time. Significant differences were found in perspectives and motives but not in activity preferences, leading to the conclusion that playfulness relates more to how individuals view their leisure and what they seek than in what they do. Only minor differences due to gender or race were observed.     

The Provision of Other Services by Auditors: Independence and Pricing Issues

This research has three objectives: to identify the extent and level of other services provided by incumbent auditors in the Australian business environment; to examine pricing issues by investigating the relationship between fees for other services and audit fees; and to address the question of independence by (a) identifying whether the incidence of audit qualification is related to the level of other services purchased and (b) investigating whether there is a relationship between audit tenure and the level of other services provided. Information on audit fees, fees for other services, size, audit qualifications, industry and auditor (Big 8(6)/Non-Big 8(6)) was obtained from publicly available information for the majority of the top 500 Australian companies listed on the Australian stock exchange between 1986–1990. This study provides evidence that an increasing number of clients are purchasing other services from their auditor. A significant positive relationship between fees paid for other services and audit fees was also identified. No relationship was identified between the level of other services and the type of audit report issued or audit tenure, supporting the view that audit independence is not compromised by provision of the other services.     

Ethics, Governance and Risk Management: Lessons From Mirror Group Newspapers and Barings Bank

While corporate failures, such as Enron and WorldCom, have focused attention on issues of business ethics, corporate governance and risk management, there is nothing intrinsically new in the reasons behind their collapse. Neither is there anything fresh in the media's rush to identify a scapegoat. An examination of the financial collapse of Mirror Group Newspapers and Barings Bank, demonstrates failures within both these companies' corporate cultures and management systems, which allowed, if not encouraged, unethical behaviour by key individuals. It is argued that a combination of legislation, regulation, effective risk management and appropriate sanctions are needed, if such unethical behaviour, and resulting corporate failure, is to be prevented in future.     

Ethical Decision-Making by Consumers: The Roles of Product Harm and Consumer Vulnerability

The primary purpose of this study was to examine the effects of perceptions of product harm and consumer vulnerability on ethical evaluations of target marketing strategies. We first established whether subjects are able to accurately judge the harmfulness of a product through labeling alone, and whether they could differentiate consumers who were more or less vulnerable. The results suggest that without the presence of a prime, subjects who depended on implicit memory or guess were able to detect differences in “sin” and “non-sin” products and consumer vulnerability, but were far less likely to be able to distinguish among high and low levels of product harm and consumer vulnerability. The inability to accurately identify high and low levels of product harm and consumer vulnerability impacted their perceptions of the ethicality of target marketing strategies, such that only four out of 18 target marketing strategies were judged as unethical. Thus, our findings contradict previous research that found subjects judged many more of the integrated strategies as unethical [Smith and Cooper-Martin, J Market 61(1997) 1]. Our results suggest that assessing ethical evaluations of strategies varying in product harm, and consumer vulnerability may only be relevant if consumers can accurately identify product harm.     

Restaurant servers’ perceptions of customer tipping intentions

Customer reactions to service encounters have been studied with surprisingly little emphasis on how servers’ perceive customers. If tips are an incentive to reward service then beliefs about consumers’ tipping habits may impact service delivery. An extensive survey of restaurant servers revealed that regular patrons and males were thought to be the best tippers; teenagers the worst. Females perceived males, African-Americans and foreign customers to be better tippers than did males; self reported tip income for males was greater than for females. Server ethnicity was not a factor. Systematic monitoring of these server perceptions may ensure more homogeneous service delivery.