Less pain,same gain: The effects of priming fairness in price negotiations

This research demonstrates that, by priming a consideration for fairness, a seller can increase a buyer's satisfaction without sacrificing profit. In simulated negotiations, participants primed to consider fairness demonstrated more cooperative behavior, making greater concessions that led to faster agreement. Fairness‐primed buyers consequently had a more positive attitude toward the seller and expressed significantly greater positive subjective disconfirmation of their expectations. These results show how self‐interest and social utility can work in concert once a concern for fairness is activated. The results support the Models of Social Utility and Group Identification and confirm the Expectancy Disconfirmation Model of Negotiations. © 1999 John Wiley & Sons, Inc.     

Reviews

Regions. ERA 1998: 21st CENTURY REGIONS. London: Economic & regional analysis, 23. Buckingham Gate, London SW1E 6LB, £30 + £1 p&p paper.

Environmental management standards. Krut, R. and Gleckman, H. 1998: ISO 14001: A MISSED OPPORTUNITY FOR SUSTAINABLE GLOBAL INDUSTRIAL DEVELOPMENT. London: Earthscan Publications Ltd, £14.95 paper.

Environmental jobs. Hale, M. and Lachowicz, M. 1998: THE ENVIRONMENT, EMPLOYMENT AND SUSTAINABLE DEVELOPMENT. London: Routledge, £17.99 paper.

Sustainability and regeneration. Carley, M. and Kirk, K. 1998: SUSTAINABLE BY 2020? A STRATEGIC APPROACH TO URBAN REGENERATION FOR BRITAIN'S CITIES. Bristol: The Policy Press, £11.95 paper.

Gambling. Frey, J.H. (ed) 1998: GAMBLING: SOCIOECONOMIC IMPACTS AND PUBLIC POLICY. The Annals of the American Academy of Political and Social Science. London: Sage Publications, £14.99 paper.

Informal employment. Williams, C. C. and Windebank, J. 1998: INFORMAL EMPLOYMENT IN THE ADVANCED ECONOMIES: IMPLICATIONS FOR WORK AND WELFARE. London: Routledge, £15.99 paper.

TECS. Jones, M. 1999: NEW INSTITUTIONAL SPACES: TECS AND THE REMAKING OF ECONOMIC GOVERNANCE. London: Regional Studies Association, £27.50 paper.

The New Regional Agenda. Dungey, J. and Newman, I. 1999: THE NEW REGIONAL AGENDA. London: Local Government Information Unit, £15.00 paper.

Mutual aid and self-help. Burne, Danny and Taylor, Marilyn, 1998: MUTUAL AID AND SELF-HELP: COPING STRATEGIES FOR EXCLUDED COMMUNITIES. Bristol: The Policy Press, £10.95.     

How does perceived formality shape unheard challenging voices?

Abstract

It has been argued that upward challenge is important because it allows employees to have a say in organisational decision-making. Yet upward challenge may go unheard in organisations. Formal voice mechanisms are largely considered to be advantageous for encouraging employees to share their views and concerns. However, recent papers calling into question the distinction between formal and informal voice have prompted investigation into the value of formal voice mechanisms in encouraging upward challenge. This qualitative study attempted to understand in what ways formal voice mechanisms had the potential to create unheard voices by first establishing a working definition of formal voice mechanisms. Using a sample of 19 UK police officers, participants used a card sort to categorise formal and informal voice mechanisms. They subsequently identified, through semi-structured interviews, that formal voice mechanisms could be considered risky for upward challenge. The findings can be used by scholars and practitioners as a framework to identify where challenging voices may be going unheard.     

Who trades water allocations? Evidence of the characteristics of early adopters in the Goulburn–Murray Irrigation District,Australia 1998–1999**

This article applies a model of innovation to analyze the characteristics of irrigators within the Goulburn–Murray Irrigation District in Australia and examines the efficiency of the early water market in the late 1990s. Using multinominal and binary logit analyses we identify the factors associated with irrigators who sold or bought water allocations during 1998–1999 and irrigators who at that time had never participated in any kind of water trading. Contrary to expectations we find that early adopters of water trading were older farmers with low farm productivity, but that in line with theory they had higher levels of education, had spent less time farming, had larger irrigated area, farm operating surplus and farm assets, owned farms that were more intensively farmed, and were more progressive in their planning. There was only weak evidence to suggest that water moved from lower value uses to higher value uses, suggesting the water allocation market had limited efficiency in its’ initial years.     

Fish Consumers: Environmental Attitudes and Purchasing Behavior

The objective of this study was to expand on the limited awareness of the U.S. fish consumer. Measures were tested through a Web-based national survey. The final survey consisted of 40 questions, including environmental awareness, food neophobia, fish consumption, reasons for consuming fish, and demographic variables. Correlations and t tests were used to analyze relationships between eating fish in restaurants and other variables. Hierarchical cluster analysis was used to segment respondents into two groups based on their environmental awareness and neophylic/neophobic attitudes. EcoFish consumers were more likely to be male, eat fish for health and the environment, and eat fish at restaurants significantly more than the Indifferent Fish consumers. Restaurants can use these results to market to eco-friendly, health-conscious fish consumers.     

What Does it Take to Sell Environmental Policy? An Empirical Analysis of Referendum Data

We analyze the factors that influence the support for environmental policy proposals. Swiss referendum data show that proposals obtain more yes-votes if they do not restrict consumption possibilities directly, if they are endorsed by the largest business association, if environmental preferences are strong and economic conditions are favorable at the time of the referendum. Also, there are more pro-environmental votes in cantons with higher population density. On the other hand, yes-votes do not seem to depend on whether a proposal involves a tax or not.     

Do active fund managers care about capital gains tax efficiency?

This study investigates the tax efficiency of actively managed equity funds by conducting a previously unaddressed natural experiment. Specifically, we examine whether asset sales were timed to take advantage of the introduction of a substantial discount to realized capital gains when the holding period was at least 1 year. Institutional equity fund management in Australia is principally focused on the pre-fee and pre-tax performance surveys of leading asset consultants. Given this industry setting, our study is important because tax efficiency is not accounted for directly in the reported performance numbers, and is thus opaque. We find that active fund managers overall have significantly increased the proportion of long-term capital gains realized after the change in taxation code, although there are significant variations across funds. We also find that active fund managers realize more long-term gains on both large capitalization and low volatility stocks.     

Network Externalities and Standardization: A Classroom Demonstration

This paper presents a classroom game that can be used to demonstrate network externalities, standardization, and switching costs. In the basic game, students independently choose a technology whose value depends on the total number of students choosing that technology. In the next round, sequential decision making is allowed that quickly leads to standardization. Introducing imperfect information and switching costs into subsequent rounds can lead to the real-world phenomenon of an inferior technology becoming the standard. This exercise can be used in principles of economics classes to teach these important concepts without requiring mathematical models. In more advanced classes, construction of the mathematical model behind the game may be assigned.     

Social Partnership or a ‘Complete Sellout’? Russian Trade Unions’ Responses to Conflict

In 1990 the former communist trade unions in Russia adopted a programme of social partnership, the aim of which was to defend their members’ interests during transition while also maintaining social peace. But critics of social partnership within the union movement argue that it amounts to little more than an excuse for inaction. To examine whether social partnership represents a departure from the collaborationist habits of the Soviet past, I examine 33 case studies of conflict at enterprise level conducted between 1999 and 2000. This analysis reveals considerable continuity with Soviet practice.     

Entry and Competition in the Postal Market: Foundations for the Construction of Entry Scenarios*

This paper presents a model of entry and imperfect competition, which is inspired by the product differentiation literature and incorporates facts pertaining to the postal sector. There are two operators: incumbent and potential entrant. The entrant offers only one of the products (commercial mail) with a specific technology and delivers only to part of the addressees (located in low cost areas). Its degree of coverage is viewed as a quality attribute; it affects demand and hence market share. The incumbent faces a USO while the entrant is an unregulated profit maximizing firm. To illustrate the potential applications of our approach, we provide some numerical simulations of entry scenarios.