Group cooperation under uncertainty

Previous research has shown an ‘interindividual-intergroup discontinuity effect’: intergroup interactions generally lead to less cooperative outcomes than interindividual interactions. We replicate the discontinuity effect in the deterministic prisoner’s dilemma, but find that groups are more cooperative than individuals in a stochastic version of the game. Three major factors that underlie the usual discontinuity effect are reduced in the stochastic environment: greed, fear, and persuasion power. Two group mechanisms are proposed to explain the reversed discontinuity effect: the motivation to avoid guilt and blame when making decisions that affect others’ welfare, and the social pressure to conform to certain norms when one is in a group setting.     

Determinants of Priority for Risk Reduction: The Role of Worry

One hundred twenty-two members (experts) of the Society for Risk Analysis completed a mailed questionnaire and 150 nonexperts completed a similar questionnaire on the World Wide Web. Questions asked included those about priorities on personal and government action for risk reduction, badness of the risk, number of people affected, worry, and probabilities for self and others. Individual differences in mean desire for action were largely explained in terms of worry. Worry, in turn, was largely affected by probability judgments, which were lower for experts than for nonexperts. Differences across risks in the desire for action, within each subject, were also determined largely by worry and probability. Belief in expert knowledge about the risk increased worry and the priority for risk reduction. A second study involving 91 nonexperts (42 interviewed and 49 on the Web) replicated the main findings for nonexperts from the first study. Interviews also probed the determinants of worry, attitudes toward government versus personal control, and protective behaviors.     

Service(s) Marketing Research: Developments and Directions

This paper outlines the development of research in the domain of service(s) marketing from its birth as an area of academic study in the 1960s/1970s to the current time. It identifies four phases of development. Phases 1–3 relate to the period before 2004, which focuses on the development of service(s) marketing. In Phase 4, a greater focus on the concept of service (singular) – defined as the application of knowledge and skills – has resulted in developments and directions in service research that offer a different perspective through which to view more general marketing. This different perspective has explicit implications also for wider business and management research. The paper summarizes current research in this domain, which coalesces around three broad perspectives, namely, the service‐dominant logic of marketing, technology and service, and transformative service research. It concludes by outlining likely trends for service research into the future. Three interrelated directions are suggested: research on service in a changing context; research responding to academic schools of thought; and research responding to consumer trends.     

A New Kind of Case Study: Using Business Bestsellers in the Business Policy Course

The undergraduate Business Policy (Strategic Management) course is often taught by using the case method of instruction. Cases are generally regarded as especially good vehicles for giving students an understanding of the general management view of an organization. The authors believe that it is useful for students to learn much about the strategy of at least one corporation in-depth. They use a business bestseller about a particular company or industry each semester for this purpose. All undergraduate students prepare the same written assignments on this company or industry using the business bestseller as a starting point. Experience in using the business bestseller as the basis of a written assignment in the business policy course has been very positive. Students both enjoy and profit from an assignment that focuses in-depth on a major firm or industry that they can comprehend and the evolution of which they can follow. Alumni often indicate that they continue to track the company or industry after graduation. The authors believe that such written assignments help prepare students of business strategy for the real world. This revised version was published online in July 2006 with corrections to the Cover Date.     

Understanding Management Performance

Current models of the factors underlying management performance make use of a variety of variables at different levels of analysis. A framework is presented in which variables of three different types are linked together. Using data from a sample (n = 437) of British managers this article explores relationships between personality factors (using the big-five factors), work competencies and managerial performance. Results from the analyses reveal a set of underlying competency factors, which show different patterns of correlation with two facets of performance: current proficiency and promotability. In turn, these factors and the facets of performance show relationships with the big-five personality factors. Current proficiency is more closely related to competencies of organization, specialization and analysis – competencies more likely to be displayed by people who are conscientious and introverted. Promotability is linked more closely to competencies concerning action/motivation, flexibility/sensitivity and communication – competencies more likely to be displayed by people who are extroverted with lower conscientiousness and agreeableness.     

Earl Warren School of Paralegal Studies, Inc.

Wishing to retire from teaching to enter business, Mrs. Jamie Donaldsoncontemplates acquiring the Earl Warren School of Paralegal Studies, Inc.Factors to be considered in making that decision are issues in the case.Paralegal studies continues to be a growth area, and the outlook is favorable.However, there are logistical and financial considerations to be evaluated.Whether to purchase the school is the critical question.     

Intuitions about penalties and compensation in the context of tort law

Students, retired judges, economists, and others made judgments of appropriate penalties and compensation for hypothetical injuries. In some scenarios, compensation was paid by the government and penalties were paid to the government, so the two could differ. Penalties were generally uninfluenced by their deterrent effect on future behavior. Penalties were greater when they were paid directly to the victim than when they were paid to the government. Compensation was affected by whether injuries were caused by people or by nature, or by acts vs. omissions. These effects are not justified according to consequentialist views of penalties and compensation. We suggest that people are overgeneralizing reasonable rules and that such overgeneralization may be involved in perverse effects of tort law.     

Physical aggression after being crowded

Subjects were given an opportunity to aggress using a Buss machine either immediately or 30 minutes after competing or cooperating on a task in a crowded or uncrowded situation. It was found that for subjects who were allowed to aggress immediately, crowding reduced aggression under the competitive set but had no effect under the cooperative set. This effect of crowding was not found with the delay subjects. The results of this study are consistent with the findings of other studies that social withdrawal rather than aggression may occur in response to aversively dense conditions. The lack of crowding effect after a 30-minute delay suggests that the effect of the laboratory crowding experience is transient in nature and best generalized to short-term crowding experiences such as those encountered on elevators and buses.     

Second-order probabilities and belief functions

A second-order probability Q(P) may be understood as the probability that the true probability of something has the value P. True may be interpreted as the value that would be assigned if certain information were available, including information from reflection, calculation, other people, or ordinary evidence. A rule for combining evidence from two independent sources may be derived, if each source i provides a function Q _i (P). Belief functions of the sort proposed by Shafer (1976) also provide a formula for combining independent evidence, Dempster's rule, and a way of representing ignorance of the sort that makes us unsure about the value of P. Dempster's rule is shown to be at best a special case of the rule derived in connection with second-order probabilities. Belief functions thus represent a restriction of a full Bayesian analysis.