Sunk costs and sunk benefits: A re-examination of re-investment decisions

Prior experimental studies supporting the prospect theory explanation of the sunk-cost effect manipulate the framing of the initial investment, describing it either in neutral terms or as a prior loss. This paper subjects the prospect theory explanation to further examination, but takes an alternative experimental approach based on the differential risk taking behaviour predicted by prospect theory’s S-shaped value function. The experiments manipulate whether an initial investment produces a sunk cost (prior loss) or a sunk benefit (prior gain) and investigate the impact of this on the likelihood of authorising an incremental investment held constant across treatment conditions. To ensure the results are robust to the type of incremental investment, two experiments are conducted across which the outcomes of the incremental investment are manipulated to produce poor or good investment opportunities. In all cases the results fail to support a higher likelihood of authorising the incremental investment following a sunk cost than a sunk benefit. In isolation, therefore, prospect theory is unable to explain fully the sunk-cost effect.     

Attitudes and Work Motivation of Subgroups of Seasonal Hotel Workers

Labour turnover is a strong feature of of hotels in the UK, especially in the seasonal seaside sector. However, the link between job mobility and job satisfaction is complex and cannot be adequately explained by ‘traditional’ theories of motivation. In an attempt to account for the impact of individual worker differences on job attitudes, Hackman and Oldham's [1974, 1980] job diagnostic survey was distributed to 163 hotel workers. The results suggest that hotel workers can be divided into subgroups, characterised by both residential status and work preference. Furthermore, these additional dimensions explain work attitudes and motivation more effectively than Hackman and Oldham's original ‘growth need strength’ dimension.     

数据集成战略地位日益凸显

IT为全球经济增长和丰富人们的生活体验作出了十分重要的贡献，而软件和信息服务业在IT行业发展中举足轻重。现在，软件和信息服务业正以前所未有的速度向经济与社会生活的各个方面渗透。那么，3年、5年或10年后，软件行业将会怎样？全球领先的企业数据集成软件独立供应商Informatica公司主席兼首席执行官Sohaib Abbasi认为：     

Ex Ante Hedging Effectiveness of UK Stock Index Futures Contracts: Evidence for the FTSE 100 and FTSE Mid 250 Contracts

Ex ante hedging effectiveness of the FTSE 100 and FTSE Mid 250 index futures contracts is examined for a range of portfolios, consisting of stock market indexes and professionally managed portfolios (investment trust companies). Previous studies which focused on ex post hedging performance using spot portfolios that mirror market indexes are shown to overstate the risk reduction potential of index futures. Although ex ante hedge ratios are found to be characterised by intertemporal instability, ex ante hedging performance of direct hedges and cross hedges approaches that of the ex post benchmark when hedge ratios are estimated using a sufficient window size.     

Colliding Interests – Age as an Automobile Insurance Rating Variable: Equitable Rate-Making or Unfair Discrimination?

Many private business relationships are increasingly characterized by claims that certain actions should not be permitted since particular right claims are involved. Such claims should be taken seriously, but are they always ethically legitimate? This paper analyzes one context, the use of age as a rating variable in the pricing of automobile insurance, where such claims are made. By identifying, evaluating and assessing the relevant basis for the differentiation, actuarial equity, it is concluded that there is an ethical basis for such a practice. The analysis also provides an equivalent means for considering other such analogous claims where actuarial equity is involved.     

Career paths and labour mobility in the conventions and exhibitions industry in eastern Australia: results from a preliminary study

The Conventions and Exhibitions Industry has undergone substantial economic growth worldwide and is seen as an excellent provider of new employment opportunities. The sector is recognised and considered attractive for both new and existing employees and provides excellent career prospects. However careers within the sector are relatively new with little information available as to potential progression or pathways. In an industry that is subject to high mobility rates and labour turnover this paper presents the preliminary findings of a study that is focused on establishing the potential career paths, patterns and strategies of managers in the convention and exhibition industry in Australia. Copyright © 2001 John Wiley & Sons, Ltd.     

Near-efficient equilibria in contribution-based competitive grouping

We examine theoretically and experimentally how competitive contribution-based group formation affects incentives to free-ride. We introduce a new formal model of social production, called a “Group-based Meritocracy Mechanism” (GBM), which extends the single-group-level analysis of a Voluntary Contribution Mechanism (VCM) to multiple groups. In a GBM individuals are ranked according to their group contributions. Based on this ranking, participants are then partitioned into equal-sized groups. Members of each group share their collective output equally amongst themselves according to a VCM payoff function. The GBM has two pure-strategy Nash equilibria. One is non-contribution by all; this equilibrium thus coincides with the VCM's equilibrium. The second equilibrium is close to Pareto optimal. It is asymmetric and quite complex from the viewpoint of experimental subjects, yet subjects tacitly coordinate this equilibrium reliably and precisely. Extensions of the basic GBM model to incorporate various features of naturally occurring group formation are suggested in the conclusion.     

Electronic Monitoring and Privacy Issues in Business-Marketing: The Ethics of the DoubleClick Experience

The paper examines the ethics of electronic monitoring for advertising purposes and the implications for Internet user privacy using as a backdrop DoubleClick Incs recent controversy over matching previously anonymous user profiles with personally identifiable information. It explores various ethical theories that are applicable to understand privacy issues in electronic monitoring. It is argued that, despite the fact that electronic monitoring always constitutes an invasion of privacy, it can still be ethically justified on both Utilitarian and Kantian grounds. From a Utilitarian perspective the emphasis must be on minimizing potential harms. From a Kantian perspective the emphasis must be on giving users complete information so that they can make informed decisions as to whether they are willing to be monitored. Considering the Internet advertising industrys current actions, computer users and government regulators would be well advised, both practically and ethically, to move to a user control model in electronic monitoring.     

‘The Business of Ethics and Gender’

Unethical decision-making behavior within organizations has received increasing attention over the past ten years. As a result, a plethora of studies have examined the relationship between gender and business ethics. However, these studies report conflicting results as to whether or not men and women differ with regards to business ethics. In this article, we propose that gender identity theory [Spence: 1993, Journal of Personality and Social Psychology 64, 624–635], provides both the theory and empirical measures to explore the influence of psychological gender traits and gender-role attitudes on ethical perceptions of workplace behaviors. Statistical analyses of the data reveal that based on sex alone, no differences occur between men and women in their ethical perceptions. Yet, when a multidimensional approach to gender is applied, results show that expressive traits and egalitarian gender-role attitudes contribute to both men’s and women’s propensity to perceive unethical workplace behaviors as unethical. The implications of these findings and suggestions for future research are presented.