Framing,probability distortions,and insurance decisions

A series of studies examines whether certain biases in probability assessments and perceptions of loss, previously found in experimental studies, affect consumers' decisions about insurance. Framing manipulations lead the consumers studied here to make hypothetical insurance-purchase choices that violate basic laws of probability and value. Subjects exhibit distortions in their perception of risk and framing effects in evaluating premiums and benefits. Illustrations from insurance markets suggest that the same effects occur when consumers make actual insurance purchases.Presented at the Conference onMaking Decisions about Liability and Insurance, The Wharton School, University of Pennsylvania, Philadelphia, PA, 6–7 December, 1991. This research is supported by National Science Foundation Grant SES88-09299. The authors thank Jon Baron, Colin Camerer, Neil Doherty, Paul Kleindorfer, Amos Tversky, and two anonymous referees for many helpful comments. We particularly acknowledge the efforts of Matthew Robinson and Penny Pollister for their help with data analysis.     

On the Hypothesis of No Interaction on a Linear Scale in Contingency Tables

The purpose of this paper is to review briefly the three main formulations of no Interaction hypotheses in contingency tables and to consider the formulation on a linear scale in some detail.More specifically we (i) present a situation in 2×2 tables where such a formulation may be more appropriate than others, (ii) study the geometry for this problem, (iii) give contrast-type or parametric ANOVA type formulations in the general n-dimensional tables, (iv) discuss estimation and testing procedures and (v) consider collapsibility of contingency tables in relation to the hypotheses of no interaction on a linear scale.     

The Formation of Group Affect and Team Effectiveness: The Moderating Role of Identification

In the current research we use the social identity perspective to enhance our understanding of group affect (i.e. a collectively shared pattern of affective states among group members). Because higher identification (i.e. the extent to which group members define themselves in terms of their group membership) is related to higher attentiveness to fellow group members, we expected that group identification would foster affective convergence, and that the effects of group affective tone on team effectiveness would be stronger for higher identifying groups. A survey of teams (n=71 teams) confirmed our expectations. A scenario experiment (n=121 participants) added to our findings by showing that identification does indeed lead group members to affectively converge to their fellow group members and that this affective convergence, in turn, explains subsequent team‐oriented attitudes. Our study testifies to the notion that team managers may want to take notice of and manage affect in work groups, because, especially in higher identifying teams, affect may spread among team members and influence the team's effectiveness.     

Beyond (But Including) the CEO: Diffusing Corporate Social Responsibility throughout the Organization through Social Networks

Chief Executive Officers and other organizational leaders can affect how corporate social responsibility initiatives are perceived in their organizations. However, in order to be successful with regard to promoting CSR, leaders need to have strong network competencies and to move beyond charismatic leadership. In this paper we offer a critique of charismatic leadership as it relates to CSR, posit that the intellectual stimulation brought about by transformational leadership is more important in this regard, propose that internal and networking is a leadership competence highly relevant to CSR, and emphasize the importance of working through highly credible opinion leaders in promoting CSR.