Proper scoring rules for general decision models

If a decision maker whose behavior conforms to the max-min expected utility model is faced with a scoring rule for a subjective expected utility decision maker, she will always announce a probability belonging to her set of priors; moreover, for any prior in the set, there is a scoring rule inducing the agent to announce that prior. We also show that on the domain of Choquet expected utility preferences with risk neutral lottery evaluation and totally monotone capacities, proper scoring rules do not exist. This implies the non-existence of proper scoring rules for any larger class of preferences (CEU with convex capacities, multiple priors).     

Mozambique Metical Exchange Rate Dynamics: Evidence of Fractional Co‐Integration in the USA and South African Rates

This paper studies the exchange rate dynamics of the Mozambique metical with respect to the US dollar and the South African rand. However, instead of using standard I(0)/I(1) techniques, we use long memory and fractionally integrated and co‐integrated models. Our results indicate that the two exchange rates are highly persistent, with orders of integration equal to or above 1. They also seem to be co‐integrated, with an order of integration close to albeit above 0 but with an AR coefficient very close to 1. Thus, although the two series seem to be fractionally co‐integrated, shocks in the long‐run relationship between the two variables are persistent and take a long time to disappear.     

Schumpeterian economics: some observations on the relevance of his theoretical contributions to the management of industrial research and development

This paper investigates the relevance of the theoretical writings of Schumpeter to the management of research and development (R&D) in small and large industrial firms. Schumpeter's emphasis in his early work on three main aspects of industrial R&D; namely the importance of entrepreneurship, industrial innovation and resultant creative destruction, were major new insights that rejected the long‐standing view that equilibrium was the best state for any industrial economy. This paper, with the aid of relevant literature from both Schumpeter and others, seeks to relate his theoretical approach (that changed over time to favour large firm R&D) to the implication for industrial R&D, and in particular, the relationship between R&D in small and large firms. The paper concludes that if Schumpeter had lived to see the current industrial landscape, he might have returned to his early belief that entrepreneurial new small firms remain key harbingers of technological progress.     

Team Production with Punishment Option: Insights from a Real‐Effort Experiment

This paper analyzes the consequences of allowing for punishment in a real‐effort pair production experiment. The behavior of the best performer in the team differs on whether he or she can impose a sanction on the less performing partner. When sanctions are not allowed, good performers reduce their effort in response to the advantageous difference in scores; when they can impose sanctions, their change in effort is no longer related to the difference in scores. To some extent, a sanction mechanism allows good performers to focus on their own performance. In the case of costless sanctions, not sanctioning a partner who under‐performs, what we refer to as forgiveness, prompts the latter to improve his or her performance, but applying the sanction has a stronger push effect. Copyright © 2014 John Wiley & Sons, Ltd.     

Looking Forward to Performance Improvement: A Field Test of the Feedforward Interview for Performance Management

This study examines the effectiveness of the feedforward interview for improving the job performance of employees relative to a traditional performance appraisal interview in a business equipment firm. Managers (n = 25) were randomly assigned to one of two conditions. Employees (n = 70) who engaged in a feedforward interview with their manager were observed by an anonymous peer to perform significantly better on the job four months later than employees (n = 75) who received the company's traditional performance appraisal interview. The finding that the feedforward intervention increased performance relative to the performance appraisal indicates that the effect is a relatively enduring one. The results suggest that the feedforward interview should prove useful for human resource managers who are searching for ways to increase the performance of their organization's human resources over and above the traditional performance appraisal. © 2014 Wiley Periodicals, Inc.     

Income and Quality of Life: Does the Love of Money Make a Difference?

This paper examines a model of income and quality of life that controls the love of money, job satisfaction, gender, and marital status and treats employment status (full-time versus part-time), income level, and gender as moderators. For the whole sample, income was not significantly related to quality of life when this path was examined alone. When all variables were controlled, income was negatively related to quality of life. When (1) the love of money was negatively correlated to job satisfaction and (2) job satisfaction was positively related to both income and quality of life, income was negatively related to quality of life for full-time, high-income, and male employees. When these two conditions failed to exist, income was not related to quality of life for part-time, median- or low-income, and female employees. This model provides new insights regarding the impact of the love of money and job satisfaction on the income–quality of life relationship. Thomas Li-Ping Tang (Ph.D., Case Western Reserve University) is a Full Professor of Management in the Department of Management and Marketing, Jennings A. Jones College of Business at Middle Tennessee State University (MTSU), Murfreesboro, Tennessee, 37132. He has taught Industrial and Organizational Psychology at National Taiwan University and at MTSU. Professor Tang teaches (has taught) EMBA courses in China and France. He serves (has served) on the editorial review board of six journals and as a reviewer for 26 journals around the world. Professor Tang’s research interests focus upon people’s work motivation, compensation, money attitudes, the Love of Money, pay satisfaction, turnover, stress, and cross-cultural issues. He has published more than 100 journal articles in top behavior sciences and management journals, including Journal of Applied Psychology, Personnel Psychology, Human Relations, Journal of Management, Management Research, Management and Organization Review, Journal of Organizational Behavior, Journal of Business Ethics, Journal of Managerial Psychology, European Sport Management Quarterly, Journal of Higher Education, and others. He has presented more than 185 papers in professional conferences and invited seminars in Austria, China, Czech Republic, Finland, France, Greece, Hong Kong, Italy, Mexico, New Zealand, Singapore, Spain, Taiwan, the UK, the US, and other countries. His research has been cited in many languages, textbooks of several fields (e.g., Management Organizational Behavior, Human Resources Management, Industrial and Organizational Psychology, Human Relations, Compensation, and Statistics), and popular books. He was the winner of two Outstanding Research Awards (1991, 1999), and Distinguished International Service Award (1999) at Middle Tennessee State University. He also received the Best Reviewer Award from the International Management Division of the Academy of Management in Seattle, WA (2003).