Endogenous Games and Mechanisms: Side Payments Among Players

We characterize the outcomes of games when players may make binding offers of strategy contingent side payments before the game is played. This does not always lead to efficient outcomes, despite complete information and costless contracting. The characterizations are illustrated in a series of examples, including voluntary contribution public good games, Cournot and Bertrand oligopoly, principal–agent problems, and commons games, among others.     

Strongly stable networks

We analyze the formation of networks among individuals. In particular, we examine the existence of networks that are stable against changes in links by any coalition of individuals. We show that to investigate the existence of such strongly stable networks one can restrict focus on a component-wise egalitarian allocation of value. We show that when such strongly stable networks exist they coincide with the set of efficient networks (those maximizing the total productive value). We show that the existence of strongly stable networks is equivalent to core existence in a derived cooperative game and use that result to characterize the class of value functions for which there exist strongly stable networks via a “top convexity” condition on the value function on networks. We also consider a variation on strong stability where players can make side payments, and examine situations where value functions may be non-anonymous—depending on player labels.     

The drama of interaction within business networks

We propose a dramaturgical approach to the understanding of business networks with particular reference to IMP research. Our purpose is to focus upon immeasurable processes and practices too often neglected by the tangible, variance modeling of business networks (Colville & Pye, 2010; Rinallo & Golfetto, 2006). This paper follows our call to take language and communication more seriously (Ellis, Lowe & Purchase, 2006). The inventive fluidity of communication, in the form of dramaturgy, when added to the rather more entitative IMP model of Actors, Resources and Activities (Håkansson & Snehota, 1995) creates a more processual, theatrical ‘scenario’ of Actor-Characters, Resource Props and Scripted Activities. We employ the dramaturgical approach of Goffman (1956, 1961) which, in keeping with the approach of the IMP Group is centrally attentive to social interaction. In order to illustrate the potential contribution of this approach, we apply this dramaturgical perspective to the interactions described in a published case study (Helander & Möller, 2007, 2008a, 2008b).     

Principled moral reasoning: Is it a viable approach to promote ethical integrity?

In response to recent recommendations for the teaching of principled moral reasoning in business school curricula, this paper assesses the viability of such an approach. The results indicate that, while business students' level of moral reasoning in this sample are like most 18- to 21-year-olds, they may be incapable of grasping the concepts embodied in principled moral reasoning. Implications of these findings are discussed. James Weber is currently an Assistant Professor of Management at Marquette University. He has published articles on managerial values and moral reasoning and the teaching of business ethics in Research in Corporate Social Performance and Policy: Empirical Studies of Business Ethics and Values, International Journal of Value Based Management, Human Relations, and Journal of Business Ethics. Sharon Green is currently an Assistant Professor of Accounting at the University of Wisconsin-Madison. Her research emphasizes information processing aspects of decision making in governmental, auditing and educational contexts. Her publications have appeared in Accounting Review and Research in Governmental and Non-Profit Accounting.     

Gender and ethical orientation: A test of gender and occupational socialization theories

Ethics and associated values influence not only managerial behavior but also managerial success (England and Lee, 1973). Gender socialization theory hypothesizes gender differences in ethics variables whether or not individuals are full time employees; occupational socialization hypothesizes gender similarity in employees. The conflicting hypotheses were investigated using questionnaire responses from a sample of 308 individuals. Analysis of variance and hierarchical regression yielded unexpected results. Although no significant gender differences emerged in individuals lacking full time employment, significant differences existed between employed women and men, with women appearing more ethical. While occupational socialization predicts an interaction between employment status and gender, these group differences were opposite to those predicted. An implication for the two theories and the current conflicting research support is that these commonly used theories may be of limited usefulness. Some alternative concepts are proposed.E. Sharon Mason is an Assistant Professor of organizational behavior and human resource management in the Faculty of Business, Brock University, St Catharines, Ontario.Peter E. Mudrack is an Assistant Professor in the Department of Management and Organization Sciences at Wayne State University, Detroit, Michigan.     

Individual ethical beliefs and perceived organizational interests

Two contrasting types of individuals were each predicted to agree, for different reasons, that conventional ethical standards of society need not be upheld if organizational interests appear to demand otherwise. The hypotheses were investigated using questionnaire responses from two samples (employed and student, total N=308). Clear support was obtained for the prediction that individuals inclined toward self-interest and behavior counter to conventional standards would agree with the preceding position. Partial support was obtained for the hypothesis that individuals who simply feel obligated to support an employing organization would also agree. While the latter's perspective may be somewhat narrow or perhaps even cynical, they do not seem to reflect the self-interest profile of the first group. This study also extends the groundbreaking work of Froelich and Kottke by exploring individual difference correlates of their promising ethics scale assessing the extent of agreement that organizational interests legitimately supersede more conventional ethical standards.Peter E. Mudrack is an Assistant Professor in the Department of Management and Organization Sciences at Wayne State University's School of Business Administration, Detroit, Michigan, 48202, U.S.A.E. Sharon Mason is an Assistant Professor in the Department of Management, Marketing, and HRM at Broke University's Faculty of Business, St. Catharines, Ontario, L2S 3A1, Canada.     

Are immigrants really attracted to the welfare state? Evidence from OECD countries

This paper examines the impact of fiscal policies on both the size and educational levels of immigrants in destination countries. We find that whether or not a country’s policies are attracting highly educated immigrants goes beyond the issue of the “welfare state”. Immigrants are making important distinctions between the different benefits provided by a receiving country’s government. Health and education spending are found to have a positive impact on the education levels of immigrants while the reverse is true for unemployment and retirement benefits. Welfare programs are found to be insignificant once other government programs/taxes and other factors are taken into account. These results imply that countries should be less concerned about whether they are a “big government” with regards to attracting immigrants, and more concerned with what types of benefits they offer.     

Are Art Auction Estimates Biased?

This article considers whether presale auction estimates are unbiased predictors of price when “no‐sales” are considered utilizing a newly constructed sample of over 500 works by eight early twentieth‐century American artists. Unbiased presale auction estimates in predicting price, while expected, are generally not supported in previous work, but these studies (excepting one) do not include no‐sales in the calculations. In order to study the question, we employ a standard approach that uses an inverse Mills ratio arising from a sample selection probit to correct for selection bias. We find that controlling for selection bias, presale auction estimates appear to be biased downward, and we offer possible reasons for this result.     

Spatial and Racial Patterning of Real Estate Broker Listings in New York City

It has been well documented that Black homeseekers face discrimination in the housing market in the form of racial steering and other institutional policies and practices that are critical in limiting housing access. Less is known about the mechanisms that operate on the other side of real estate transactions to perpetuate racially segregated neighborhoods. We investigated whether White and Black brokers face segregation in the housing market. That is, to what extent do White and Black brokers differentially market property listings in neighborhoods of varying racial composition? Using real estate listings extracted from the websites of two of the largest New York City real estate brokerages, we examined whether Black and White brokers market properties primarily in Black and White neighborhoods, respectively; and whether, controlling for gender and experience level, Black brokers had a lower average price per square foot than White brokers. Results showed that Black brokers overwhelmingly marketed properties in Black neighborhoods, with fewer listings in White areas. Black brokers also marketed properties with an average price per square foot that was $197 lower than White brokers. Black brokers who worked in offices in Black neighborhoods had the lowest asking price of all brokers. Taken together, Black and White real estate brokers control a bifurcated market in NYC, perpetuating residential segregation and Black–White income and wealth disparities.