Emotional Leadership in an Intergroup Conflict Game Experiment

This article introduces leadership in a Contest group contest game. More specifically, it studies the effects of leading-by-example and emotional leadership in a behavioral experiment, but also theoretically. In this experiment leaders lead-by-example by contributing publicly to the contest before followers and can show emotional leadership by selecting basic emotions that are subsequently evoked in their followers. Emotions are evoked in this study by showing specially selected and validated movie clips.Overall, we find that leaders contribute more than followers and that leading-by-example as well as emotional leadership have a significant effect on the behavior of followers. Although, leaders do not always use these mechanisms wisely. This behavior contrasts strikingly with the Nash equilibrium predictions. Furthermore, we find that both leaders and followers contribute more then predicted by a standard Nash equilibrium. These results are shown to be in line with the affective tie model of van Dijk and van Winden (1997), the imitation model of Cartwright and Patel (2010), and a psychological costs model of Dufwenberg, Gächter, and Hennig-Schmidt (2011).     

How stressful are economic competitions in the lab? An investigation with physiological measures

Competition is ubiquitous in economic life. Yet, negative consequences of competitive environments have been reported and everyday experience suggests that competitive situations can be very stressful. It is, however, an open question whether or not economic competitions in the laboratory indeed elicit physiological stress reactions. Our study examined subjectively perceived stress and physiological changes induced by a well-established economic laboratory competition paradigm (first used in Niederle & Vesterlund, 2007) in a mixed-gender sample of 111 healthy participants. A mental arithmetic task was performed first under a piece rate (i.e., non-competitive) payment scheme and afterwards under a tournament condition. In a third round, participants decided how to be paid (i.e., piece rate or tournament). Our results indicate that compared to a control group, which performed only the non-competitive condition, the competitive game condition elicited subjective and physiological reactions that are indicative of mild stress, i.e., an increase in heart rate and a decrease of calmness and mood. Furthermore, reactions that are thought to reflect an active coping style were related to the self-selection into competition in the third round of the game. We speculate that real-life economic competitions might be even stronger stressors and the way how people cope with this kind of stress might be related to competitiveness in real-life economic contexts.     

A unified Europe? How euro-attitudes relate to psychological differences between countries

In this study, a number of psychological concepts have been measured (through questionnaire-items) in 15 countries under the hypothesis that they could explain national differences in attitudes towards the euro. Based on the average country scores for each of these concepts, multidimensional scaling (combined with hierarchical cluster analysis) revealed 5 regions and 2 unclustered countries (UK and Ireland) in three dimensions: 1. National economic pride and satisfaction; 2. Self-confident open-mindedness; 3. Progressive non-nationalistic. Structural equation modelling was further used to perform multiple group regression analyses in order to test for differential relationships between the psychological concepts and the attitudes, for the different country regions. It could be shown that the majority of psychological variables have a significantly different impact on euro-attitudes.PsycINFO classification: 2229; 2930; 2960; 3920     

Dance of the Dedicated Bottom

Abstract

LGBT caregiving for midlife and older adults facing chronic illness or disability as well as the development and evaluation of interventions targeting LGBT caregivers remains fundamentally unexplored. Caregivers regardless of their sexual orientation or gender identity often juggle multiple roles and responsibilities leading to increased stress and distress. However, largely due to discrimination and discriminatory policies, many LGBT caregivers face barriers at multiple levels of service provision that can exacerbate stress and negatively impact caregiver and care recipient quality of life. This article highlights many of these obstacles and provides examples of intervention strategies designed to assist LGBT caregivers ranging from interventions aimed at the individual and interpersonal levels of service provision to changes needed at the social policy level. As an example of an individual or interpersonal level of intervention designed to assist LGBT caregivers, the SURE 2 framework is presented and more thoroughly discussed. Given the diversity of the LGBT community, the article ends with ways to extend or adapt SURE 2 as well as suggesting that the time has come to develop and test a variety of interventions for LGBT caregivers.     

What are the likely interactions among innovation,government debt,and employment?

The study here analyzes the interactions among labor, R&D intensity, and public expenditure on education (indicators of innovation), considering public debt of countries. The study is based on 27 European countries over the 1995–2009 and applies multiple regression analysis. Main findings seem to be: a significant interaction of public expenditure on education and R&D intensity with employment rate, whereas an increase of general government consolidated gross debt has a negative interaction for employment rate as well as for technology indicators. The theoretical framework and empirical evidence suggest vital political economy implications to support employment rate during contractions of the business cycle. In particular, considering the specificity of the economic structure of countries, a fruitful lung-run political economy of growth should slowly dry out public debt by supporting GDP growth, rather than reducing government debt with high taxation and balanced-budget rules, in order to decrease frictional effects for patterns of economic, technological, and employment growth.     

Cognitive dissonance, pessimism, and behavioral spillover effects

A two-stage experiment was designed to examine spillover effects of a type of optimism/pessimism. We first exploit cognitive dissonance to induce optimism/pessimism by random assignment of high/low piece rates for performing a task. Subjects receiving the low piece rate are significantly more pessimistic with respect to performance. In Stage 2 individuals participate in an ultimatum game. Pessimistic subjects have significantly lower minimum acceptable offers, though pessimism was randomly generated in an unrelated environment. These results reveal behaviorally and economically important spillover effects - for example, pessimism regarding one’s initial conditions (e.g., living in poverty) may have spillover effects on one’s future labor market outcomes.     

Money management in blended and nuclear families

In Finland, 9% of the families with children are blended families. Though both the absolute number and the proportion of blended families is increasing throughout Europe, there is still little research information available on how they manage their finances. Blended families are an interesting group to study because their money management is clearly more complex than that of traditional nuclear families. In this paper I examine the extent of the differences between blended and nuclear families in money management, with special reference to bank accounts and the conducting of payments. I also seek to identify factors explaining the differences discovered. The research data comes from an Internet survey conducted in November 2006, which yielded answers from 469 Finnish families with children.The results, confirming earlier findings, suggested that money management is more separated in blended families than in nuclear ones. In nuclear families, both the bank accounts and the paying of expenditures are consistently managed jointly, whereas the spouses in blended families prefer separate bank accounts and display several different practices in the paying of common expenditures. In nuclear families the adults pay the expenditures together, but in blended ones they are responsible for the expenditures of their own biological children.     

Business strategy and the social norm of tipping

Tipping is an important economic phenomenon, involving about $47 billion a year in the US food industry alone, and trillions of dollars across different occupations and countries over the years. Moreover, tipping is a major source of income for millions of workers. This article discusses the implications of tipping for business strategy in the relevant industries. For example, firms can choose to impose a compulsory service charge in lieu of tipping - what are the advantages and disadvantages of doing so? How does tipping change the profit-maximizing level of investing in screening job applicants, training workers, monitoring them, and providing performance-based incentives by the firm? Can industries such as the music industry use tips (i.e., prices being voluntary and determined by the customers) as an alternative business model?     

Goal orientation and variety seeking behavior: The role of decision task

This research conducted two experiments to examine the interaction effect of decision task (sequential choices vs. simultaneous choices) and goal orientation (prevention focus vs. promotion focus) on variety-seeking behavior. In the sequential choices for sequential consumption condition (consumers buy one item at a time for each consumption occasion), promotion-focused consumers tend to select a greater variety of items (a higher extent of variety-seeking) than prevention-focused consumers. In contrast, in the simultaneous choices for sequential consumption condition (consumers buy several items at a time for each following consumption occasion), prevention-focused consumers tend to select a greater variety of items (a higher extent of variety-seeking) than promotion-focused consumers.     

Technological affluence and subjective well-being

This study measures the welfare effects of technological goods using a recent European pooled cross-sectional dataset. We find that fixed and mobile phones, music players and personal computers, including those with an Internet connection, are associated with significantly higher levels of well-being measured by individual self-reported life satisfaction. Further controlling for mobile and broadband country penetration levels, we provide evidence suggesting that the latter matters for life satisfaction, especially for the users who already possess the relevant devices. Keeping life satisfaction constant, we subsequently derive substantial GDP per capita estimates equivalent to a 10 percentage point increase in broadband and mobile phone penetration.