improving prediction market forecasts by detecting and correcting possible over reaction to price movements abstract we examine the impact of price trends on the accuracy of forecasts from prediction markets in particular we study an electronic betting exchange market and construct independent variables from market price odds time series from 6058 individual markets a dataset consisting of over 8 4 million price points using a conditional logit model we find that a systematic relationship exists between trends in odds and the accuracy of odds implied event probabilities the relationship is consistent with participants over reacting to price movements in particular in different time segments of the market increasing and decreasing odds lead respectively to under and over estimation of odds implied probabilities we develop a methodology to detect and correct the erroneous forecasts associated with these trends in odds in order to considerably improve the quality of forecasts generated in prediction markets

a case for comparative entrepreneurship assessing the relevance of culture as international entrepreneurship gains momentum as a significant and relevant field of research scholars need to address methodological issues that can facilitate the triangulation of research results in this paper we examine the relationship between culture and four personality characteristics commonly associated with entrepreneurial motivation by demonstrating systematic variation in entrepreneurial characteristics across cultures we raise important questions about the boundaries of international entrepreneurship research and the challenges of transcending them

management practices across cultures role of support in technology usage as global corporations pursue a dual strategy of global integration and local responsiveness it becomes necessary to determine whether some management practices can be applied across borders using a sample of 143 employees from nine nigerian organizations we found that organizational support contributed to technology usage however only employees with low computer training associated support with aspects of technology usage such as daily use frequency of use and total application

cross cultural variations in climate for autonomy stress and organizational productivity relationships a comparison of chinese and uk manufacturing organizations cross cultural researchers have questioned the extent to which european american management practices can be transported to major markets in asia such as the people s republic of china applying employee involvement theory we examined the relationships between climate for autonomy work demands climate employee stress and organizational productivity in a cross national study of 51 uk and 104 chinese manufacturing organizations we predicted and found that climate for autonomy was positively and negatively related to stress in the chinese and uk contexts respectively the interaction of climate for autonomy and work demands climate was significant climate for autonomy was positively related to organizational productivity only when work demands climate was low

the role of markets in reducing expected utility violations market theorists assume that expected utility predicts preferences at the market level even as evidence mounts that it predicts poorly at the individual level the arguments for better performing markets are grounded in the assumption that individuals respond to the competition of the market the objective of this study is to test empirically the validity of those assumptions using the betweenness property of expected utility i conclude that expected utility does indeed predict better in markets but analyses suggest that improved performance may be due to the statistical role played by markets introduced by market price selection rules

high performance work systems and organizational performance across societal cultures this paper assesses whether societal culture moderates the relationship between human resource management hrm practices and organizational performance drawing on matched employer employee data from 387 organizations and 7187 employees in 14 countries our findings show a positive relationship between hrm practices combined in high performance work systems hpws and organizational performance across societal cultures three dimensions of societal culture assessed power distance in group collectivism and institutional collectivism did not moderate this relationship drawing on the ability motivation opportunity amo model we further consider the effectiveness of three bundles of hrm practices skill enhancing motivation enhancing and opportunity enhancing practices this analysis shows opportunity enhancing practices e g participative work design and decision making are less effective in high power distance cultures nevertheless in markedly different countries we find combinations of complementary hpws and bundles of amo practices appear to outweigh the influence of societal culture and enhance organizational performance

empowerment effects across cultures three studies examined cross cultural variations in empowerment effects study 1 investigated whether hofstede s power distance scores moderated the effect of job autonomy on job satisfaction using world values survey data on 33 nations study 2 surveyed frontline hotel employees from canada and prc to investigate the moderating role of power distance at the individual level in study 3 hotel management students from canada and prc were asked to play the role of a frontline employee who had to handle a special customer request in a scenario experiment these studies show consistently that the cultural value of power distance moderates the effect of empowerment on job satisfaction moreover willingness to accept and exercise the discretionary power allowed by management and desire to satisfy customer needs and wants are two employee conditions that are essential for the successful implementation of the empowerment approach

differences in managerial values a study of u s hong kong and prc managers in this study of convergence divergence of managerial values four western developed measures machiavellianism locus of control intolerance of ambiguity and dogmatism and the four dimensions of the eastern developed chinese value survey confucian dynamism human heartedness integration and moral discipline were the measures used the findings indicate that often times both culture and the business environment interact to create a unique set of managerial values in a country

one more time international business in a global economy this paper seeks to redirect the debate on the past present and future of international business ib it sets out to dispel prevailing myths pertaining to the field s disciplinary roots its domain and underlying bases of theory and knowledge ib is positioned as an integrative field whose competitive advantage and added value lie in the synergetic combination of global and local knowledge that is unavailable to and not imitable by its major competitors in particular economics and strategy

leader member exchange lmx paternalism and delegation in the turkish business culture an empirical investigation although businesses increasingly operate across cultures there is a paucity of research that examines the influence of national culture on leadership practices this study uses a structural equation modeling approach to investigate relationships among leader member exchange lmx delegation paternalism and job satisfaction in turkish business organizations results from a survey study of n 185 full time employees from turkish companies support the relationship of lmx to delegation and job satisfaction however the effect of lmx on job satisfaction is mediated by paternalism an emic cultural dimension results suggest that delegation might not be an effective management tool in the middle eastern context

economic insights from internet auctions this paper surveys recent studies of internet auctions four main areas of research are summarized first we survey several studies that document and attempt to explain the frequently observed sniping or last second bidding behavior in these auctions second we summarize several methods proposed to quantify the distortions caused by asymmetric information in these markets most notably due to the winner s curse third we explore research about the role of reputation mechanisms installed to help combat these distortions finally we discuss what internet auctions have to teach us about auction design

nafta and franchising a comparison of franchisor perceptions of characteristics associated with franchisee success and failure in canada mexico and the united states abstract business format franchising which includes the product or service the brand name or trademark and the operating system developed by a franchisor has experienced significant growth over the past few decades international franchising also is growing at a rapid pace in part because of market opportunities that include new trade agreements the debate over north american free trade agreement nafta increased the focus on north american franchising in spite of this attention there are few if any comparative studies of franchising in canada mexico and the u s at the same time that international franchising growth is extolled there is an argument over the extent to which franchising increases business success a number of studies support the success thesis however recently critics claim that franchising does not significantly increase survival rates of franchisee owned units the objectives of this study are first to extend the study of franchisee success and failure by analyzing franchise executives perceptions of the importance of a number of characteristics associated with franchisee success and failure and second to examine differences among the executives perceptions of these characteristics based on the location of the franchisor canada mexico or the united states we also analyze the effects of franchise strategy type of franchise business and size of the franchise on executive perceptions of the characteristics associated with franchisee success and failure franchisor executives rated the relative importance of 39 statements taken from previous research that are associated with perceptions of success results from a factor analysis indicate that 30 of the variables load on 5 significant factors examination of the content of the factors indicates that the first factor system quality and the second factor brand name consist of variables that directly relate to the core of business format franchising the quality of the operating system and the brand name of the franchise the third factor local environment consists of statements that represent general characteristics of the local franchise environment the fourth factor communication consists of variables that link the franchisee with the franchisor and other franchisees the fifth factor franchise activities consists of variables that represent idiosyncratic characteristics or activities of a franchisee franchise executives also rated the relative importance of 16 statements associated with franchisee failure of these 6 statements associated with franchisor activities are combined to form a scale of franchisor failure and 10 statements associated with franchisee activities are combined to form a scale of franchisee failure the findings indicate that there are significant differences in most of the scales of success and failure among franchisor executives perceptions based on country location in addition there is also a significant effect of franchise strategy on perceptions there are no significant differences by type of franchise business or size of the franchisor this research contributes to two important areas of research in franchising the study of perceptions of the characteristics associated with franchisee success and failure and international franchising research the study also has practical applications knowledge about country differences in perceived characteristics of success and failure will help franchisors to identify aspects of the business system that require increased monitoring and investment awareness of country differences will also influence the selection of relevant training and development finally knowledge of differences in perceptions may assist franchisors in adapting systems and policies that are likely to increase the success of their international sites

when rational sellers face nonrational buyers evidence from herding on ebay people often observe others decisions before deciding themselves using ebay data for dvd auctions we explore the consequences of neglecting nonsalient information when making such inferences we show that bidders herd into auctions with more existing bids even if these are a signal of no longer available lower starting prices rather than of higher quality bidders bidding a given dollar amount are less likely to win low starting price auctions and pay more for them when they do win experienced bidders are less likely to bid on low starting price auctions remarkably the seller side of the market is in equilibrium because expected revenues are nearly identical for high and low starting prices

leadership and organizational justice similarities and differences across cultures international management scholars and practitioners agree that managers cannot simply assume that leadership behaviors effective in one culture can be readily transferred to other cultures this study examines the relationship of transformational leadership and leader member exchange to organizational justice and job satisfaction in five separate cultures results indicate that while there is consistent support for some of the proposed linkages there are also some interesting differences across cultures implications for theory and future research on international business are discussed

nonstandard bidder behavior in real world auctions empirical work on auctions has found that bidders deviate from standard behavior in important ways we investigate a range of these behaviors including nonrational herding auction fever quasi endowment effect and escalation of commitment our innovations are to more completely control for unobservables by using new data from a field experiment on ebay and by accounting for censoring of bids below the starting price consistent with standard auction theory and in contrast to the predictions of the nonstandard behaviors we find that auction starting price has no effect on bidder willingness to pay in a private values setting we conclude that there is little evidence that these nonstandard behaviors are important in the field

the bidder s curse traditional explanations for the popularity of auctions are efficiency and revenue maximization we argue that another reason is the potential for overbidding i e buyers bidding above their willingness to pay outside the auction the auction mechanism ensures that even if only few buyers overbid they affect prices and allocations we employ a novel approach to identify overbidding in the field comparing auction prices to simultaneous fixed prices for identical items on the same ebay webpage we argue that fixed prices provide an upper bound for auction bids in a detailed data set of board game auctions we find that the final price exceeds the simultaneous fixed price in 42 percent of the auctions the result is not explained by differences in item quality shipping costs or seller reputation prior auction experience does not eliminate overbidding the finding replicates in a second broad data set of a cross section of auctions 48 percent overbidding the substantial fraction of overbid auctions is induced by a small number of bidders only 17 percent ever bid above the fixed price using a simple model of second price auctions with alternative fixed prices we show that transaction costs of switching between auctions and fixed prices cannot explain the results given that even the expected auction price is higher than the fixed price consistent with limited attention the closer the fixed price is listed relative to an auction the less likely are overbids this effect is strongest for bidders first bids when they are likely to examine the auction and fixed price listings more closely

vertically differentiated simultaneous vickrey auctions theory and experimental evidence we study settings where a number of sellers simultaneously offer vertically differentiated vickrey auctions for imperfect substitute goods to unit demand buyers vertical differentiation can arise from differences in item quality item value certainty seller reliability or a combination of these factors we characterize the form of the bidding equilibria and derive expressions for the corresponding allocative efficiency and expected seller revenue when bidders are restricted to submit at most one bid our theory predicts the existence of a unique bayes nash equilibrium that resembles a form of probabilistic mating of likes allowing unit demand bidders to place an arbitrary number of bids induces complex strategy profiles where bidders place positive bids in all available auctions higher bidder types tend to follow more targeted strategies focusing their serious bids on fewer and generally higher quality auctions the nature of the bidding equilibria introduces allocative inefficiencies that arise from the lack of coordination in auction selection among bidders we test our theoretical propositions in a controlled laboratory experiment while also utilizing a domain specific risk score to help assess how the bidders risk type affects their bidding behavior in support of our theory we find evidence of a probabilistic assortative matching between bidder and auction types we also find that low risk type bidders tend to crowd on the highest auction and will pay a premium for the certainty it offers whereas high risk type bidders fail to appropriately adjust for risk associated with the lowest auction leading to overbidding these lead to an interesting focal anomaly whereby bids are concentrated on the highest and lowest auctions bypassing intermediate auctions

the globalization of our mental maps evaluating the geographic scope of jibs coverage this article analyzes patterns of country coverage in the journal of international business studies during the twenty five years of its existence the analysis shows a substantial expansion in the journal s geographic reach over the years but also a somewhat narrow mental map with many countries and areas receiving only minimal coverage explanations for country preferences among researchers are explored and implications for the future are discussed

values and marginal preferences in international business in a recent paper in this journal maseland and van hoorn argued that values surveys tend to conflate values and marginal preferences this assertion has been challenged by brewer and venaik who claim that the wording of most survey items does not suggest that these elicit marginal preferences this commentary responds to their claim and restates our original argument we stress that the distinction between values and marginal preferences is a conceptual rather than a semantic issue conflation of the two is a problem of stated preferences methods in general regardless of question formats what is more we argue that support for the marginal preferences interpretation of values survey data does not come from the specific wording of questions used in surveys but from a growing number of paradoxical relations between values ratings and outcomes in values research implications are twofold first we argue that in order to measure values we need to look at alternatives to the stated preferences approach such as revealed preferences and experienced preferences of which the latter seems most promising second we find that values surveys eliciting marginal preferences are useful for understanding and predicting differences in behavior in a given context

revenue non equivalence between auctions with soft and hard closing mechanisms new evidence from yahoo abstract we use a unique dataset to examine the revenue differences between auctions with a hard close ending rule versus those with a soft close ending rule we find that selling items using the soft close rule increases the selling price by an amount between 25 and 44 or 13 20 percent over the hard close format one possible theoretical explanation for these results is that the hard close ending rule accommodates the practice of sniping which leads to a lower expected selling price we find empirically that a lack of experience could help to explain why in spite of the revenue differences some sellers select the hard close ending rule

double auction dynamics structural effects of non binding price controls in competitive equilibrium non binding price controls that is price floors below and ceilings above the equilibrium should not affect market outcomes but in laboratory experiments they do we build a simple dynamic model of double auction markets with zero intelligence zi computer traders that accounts for many though not all of the discrepancies between the data and the walrasian tatonnement predictions the success of the model in organizing the data and in isolating various consequences of price controls shows that the simple zi model is a powerful tool to gain insights into the dynamics of market institutions

involvement work systems and operational effectiveness exploring the moderating effect of national power distance work practices that involve employees are generally assumed to be less effective in more hierarchical societies where employees values are not aligned with such practices in this study we challenge this assumption by developing a theory that differentiates between the symbolic and instrumental aspects of involvement work systems and proposing that their symbolic impact will be more pronounced in egalitarian societies whereas their instrumental impact will be more pronounced in hierarchical societies in particular we draw on the symbolic action perspective and theories on culture to test the relationship between involvement work systems and operational effectiveness by incorporating organizational climate of participation and national cultural differences in power distance using multi source multilevel data from 260 facilities of a multinational company operating in 22 countries we found that the mediated relationship between involvement work systems and operational effectiveness through climate of participation i e the symbolic impact was stronger among facilities located in lower power distance societies on the other hand the direct relationship between involvement work systems and operational effectiveness i e the instrumental impact was stronger in higher power distance societies overall our study resolves a seeming cultural dilemma with regard to how involvement work systems operate cross culturally

the effect of cultural differences on behavioral responses to low job satisfaction this article reports the results of a field study that evaluated behavioral responses to low job satisfaction of participants in hong kong and new zealand culture measured by vertical and horizontal individualism and collectivism had both main and moderating effects on responses first cultural groups responded differently to low job satisfaction with exit voice loyalty or neglect second culture moderated the effect of quality of job alternatives and job satisfaction on exit and loyalty and moderated the effect of quality of job alternatives on voice

ebay s crowded evenings competition neglect in market entry decisions do firms neglect competition when making entry decisions this paper addresses this question analyzing the time of day at which ebay sellers set their auctions to end consistent with competition neglect it is found that i a disproportionate share of auctions end during peak bidding hours ii such hours exhibit lower selling rates and prices and iii peak listing is more prevalent among sellers likely to have chosen ending time strategically suggesting disproportionate entry is a mistake driven by bounded rationality rather than mindlessness the results highlight the importance for marketing researchers of assessing rather than assuming the rationality of firm behavior

who thinks about the competition managerial ability and strategic entry in us local telephone markets we examine us local telephone markets shortly after the telecommunications act of 1996 the data suggest that older experienced educated managers tend to enter markets with fewer competitors this motivates a structural econometric model based on behavioral game theory that allows heterogeneity in managers ability to correctly conjecture competitor behavior we find that manager characteristics are key determinants in managerial ability furthermore our estimate of ability predicts out of sample success counterfactuals provide insight into the industry s struggles despite substantial indirect subsidies it is only when the ability to correctly conjecture competitor behavior is high that firms enter empty markets

diagnosing measurement equivalence in cross national research many researchers have pointed out that it is necessary to ensure measurement equivalence in cross national comparative research three aspects of measurement equivalence translation metric and calibration equivalence are necessary to establish the cross national reliability and validity of items used to measure theoretical constructs this paper discusses these issues and proposes two recently developed empirical techniques multiple group lisrel and optimal scaling for use in diagnosing cross national measurement equivalence these techniques are illustrated by reanalysis of a pioneering u s and japanese study the two techniques yield convergent results indicating measurement equivalence for some but not all ordinal level items under consideration the findings demonstrate that the proposed methods are useful diagnostic tools for exploring measurement equivalence several suggestions for reducing the likelihood of problems with measurement equivalence and a number of methods for dealing with items where lack of equivalence persists are also discussed

the changing landscape of jibs authorship in this study we examine the landscape of jibs authorship over time to assess 1 the accessibility of jibs to new contributors and 2 the diversity of authors contributing to jibs our analysis of author data from 1972 to 2014 shows that jibs is becoming more accessible as indicated by the high and sustained proportion of first time contributors to the journal this is also evident from the recent decline in the share of authors with multiple past jibs publications with regard to diversity our findings show that jibs has a much wider geographic scope of authors on its landscape in comparison to previous decades this may be attributed partly to increasing travel and communication in scholarly communities and partly to the increased migration of scholars in the recent decades our analysis of migration patterns of jibs authors suggests that about 51 of prominent international business scholars are employed outside their country of birth of the 49 employed in their country of birth 12 are return migrants in our sample china south korea and canada have the highest number of returnees the usa the uk germany the netherlands and china have the highest number of natives whose country of birth country of phd granting institution and country of university affiliation are identical

management style and productivity in two cultures global competition has motivated an increasing number of united states firms to set up production facilities in mexico this study examines productivity and management style differences in a mexican maquiladora operation and its u s parent plant likert s system 4 theory was used as the theoretical basis of comparison as hypothesized significant differences were found in the management systems while productivity at the two facilities was equal

an analysis of significant contributions to the international business literature the growing interest in international business has been accompanied by a dramatic rise in the volume of international business research this note examines the international business publication records for both authors and academic institutions for the ten year period 1980 1989 nine separate publications were reviewed containing some 659 international business articles weighted and unweighted rankings are reported

culture and congruence the fit between management practices and national culture the financial performance of european and asian work units of one multinational company is examined as a function of the congruence between management practices and national culture using hofstede s five national culture dimensions and analogous management practices we find that work unit financial performance is higher when management practices in the work unit are congruent with the national culture

news droughts news floods and u s disaster relief this paper studies the influence of mass media on u s government response to approximately 5 000 natural disasters occurring between 1968 and 2002 these disasters took nearly 63 000 lives and affected 125 million people per year we show that u s relief depends on whether the disaster occurs at the same time as other newsworthy events such as the olympic games which are obviously unrelated to need we argue that the only plausible explanation of this is that relief decisions are driven by news coverage of disasters and that the other newsworthy material crowds out this news coverage

rational herding in microloan markets microloan markets allow individual borrowers to raise funding from multiple individual lenders we use a unique panel data set that tracks the funding dynamics of borrower listings on prosper com the largest microloan market in the united states we find evidence of rational herding among lenders well funded borrower listings tend to attract more funding after we control for unobserved listing heterogeneity and payoff externalities moreover instead of passively mimicking their peers irrational herding lenders engage in active observational learning rational herding they infer the creditworthiness of borrowers by observing peer lending decisions and use publicly observable borrower characteristics to moderate their inferences counterintuitively obvious defects e g poor credit grades amplify a listing s herding momentum as lenders infer superior creditworthiness to justify the herd similarly favorable borrower characteristics e g friend endorsements weaken the herding effect as lenders attribute herding to these observable merits follow up analysis shows that rational herding beats irrational herding in predicting loan performance this paper was accepted by pradeep chintagunta marketing

developments in non expected utility theory the hunt for a descriptive theory of choice under risk this article reviews recent developments in the economic theory of individual decision making under risk since the 1950s it has been known that individual choices violate the standard model of expected utility in predictable ways considerable research effort has now been devoted to the project of developing a superior descriptive model following an overview of non expected utility theories which distinguishes between conventional and non conventional approaches the paper seeks to assess these alternative models in terms of empirical success using laboratory and field data and theoretical usefulness the closing sections reflect on some new directions emerging in this literature

on absolute auctions and secret reserve prices from a theory viewpoint the use of auctions with zero public reserve prices also called absolute auctions or of auctions with secret reserve prices is somewhat puzzling despite being common by allowing that buyers differ in their processing of past data regarding how the participation rate varies with the auction format and how reserve prices are distributed when secret we show in a competitive environment that these auction formats may endogenously emerge we also analyze how buyers with various sophistications and sellers with various costs sort into the different formats thereby offering a range of testable predictions alternative approaches are reviewed

bidding behavior and experience in internet auctions abstract we study the role of experience in internet art auctions by analyzing repeated bidding by the same bidder in a unique longitudinal field dataset our results show that experience significantly lowers the level of bids suggesting that bidders change their bidding behavior throughout time participating in more than ten auctions brings down average bids by up to 26 we further test several possible explanations for the observed learning behavior and show that the change in bidding strategy is a result of a change in within auction behavior that is generated with experience our results are robust to concerns of endogenous participation as well as bidder fixed effects

choice under uncertainty problems solved and unsolved ffifteen years ago the theory of choice under uncertainty could be considered one of the success stories of economic analysis it rested on solid axiomatic foundations it had seen important breakthroughs in the analytics of risk risk aversion and their applications to economic issues and it stood ready to provide the theoretical underpinnings for the newly emerging information revolution in economics 1 today choice under uncertainty is a field in flux the standard theory is being challenged on several grounds from both within and outside economics the nature of these challenges and of our profession s responses to them is the topic of this paper

mapping world cultures cluster formation sources and implications this paper extends and builds on ronen and shenkar s synthesized cultural clustering of countries based on similarity and dissimilarity in work related attitudes the new map uses an updated dataset and expands coverage to world areas that were non accessible at the time cluster boundaries are drawn empirically rather than intuitively and the plot obtained is triple nested indicating three levels of similarity across given country pairs also delineated are cluster adjacency and cluster cohesiveness which vary from the highly cohesive arab and anglo clusters to the least cohesive confucian and far eastern clusters exploring predictors of cluster formation we draw on the ecocultural perspective and other inputs and examine the combined role of language religion and geography in generating cluster formation we find that these forces play a prominent yet complex role for instance the religion and language brought by the spanish fail to create a singular cohesive latin american cluster akin to the anglo cluster the role of economic variables is similarly considered finally comparing the current map with that of 1985 we find strong support for the divergence vs convergence argument implications for international business are delineated

assessing the cross national invariance of formative measures guidelines for international business researchers the importance of establishing equivalence in measurement prior to conducting substantive cross country comparisons has long been emphasized in international business research however all approaches currently available for the investigation of measurement equivalence or invariance me i assume that the focal measures are reflective in nature in our paper we offer guidelines for the assessment of me i when the focal construct is measured with formative indicators we first identify distinct types of me i that are conceptually consistent with the nature of formative measurement models we then describe a step by step procedure that can be employed to test for these types of me i in a comparative context lastly we illustrate the application of the proposed procedure with data from a three country survey on consumers product country image perceptions

allocative efficiency of markets with zero intelligence traders market as a partial substitute for individual rationality we report market experiments in which human traders are replaced by zero intelligence programs that submit random bids and offers imposing a budget constraint i e not permitting traders to sell below their costs or buy above their values is sufficient to raise the allocative efficiency of these auctions close to 100 percent allocative efficiency of a double auction derives largely from its structure independent of traders motivation intelligence or learning adam smith s invisible hand may be more powerful than some may have thought it can generate aggregate rationality not only from individual rationality but also from individual irrationality

using laboratory experimental auctions in marketing research a case study of new packaging for fresh beef this paper illustrates the use of laboratory experimental auctions in a pretest market research program for new products we review the experimental auctions literature discuss the range of auction mechanisms available and present the advantages and disadvantages of using a particular mechanism for a laboratory pretest market we then present a step by step example of how a theoretically incentive compatible auction mechanism fifth price sealed bid was used in a laboratory pretest market for vacuum packaged beef based on the illustration we discuss the potential for using laboratory experimental auctions in pretest market research we present the limitations that may be encountered in such applications and outline research aimed at improving the behavioral properties of the technique

effects of seller supplied prices on buyers product evaluations reference prices in an internet auction context a field experiment investigated the impact of two external reference points under the seller s control on the final price of an auction when an item s seller specified a high external reference price a reserve price the final bid was greater than when the seller specified a low external reference price a minimum bid when the seller provided both high and low reference prices the reserve influenced the final bid more the low reference price led to a lower outcome compared to when the seller did not communicate any reference price the number of bidders influenced outcomes in the absence of seller supplied reference prices

a homeowner s dilemma anchoring in residential real estate transactions abstract we examine whether and how listing strategies impact sale prices in residential home sales literatures in housing economics negotiations and auctions offer diverse predictions around this question on the one hand housing studies typically treat home prices as an objective function of property and neighborhood characteristics yet the large and robust literature on anchoring effects tversky and kahneman 1974 suggests a positive relationship between listing prices and sale prices finally evidence from the auctions literature suggests the opposite pattern through herding behaviors we analyzed more than 14 000 transactions taking into account observable property heterogeneity geographical location and timing of the sales we find that higher starting prices are indeed associated with higher selling prices consistent with anchoring for the average home in our sample over pricing between 10 and 20 leads to an increase in the sale price of 117 163 this effect is particularly strong in areas with higher rates of mortgage foreclosure or serious delinquency additional analyses show that our results are unlikely to be driven by seller motivations or unobserved home qualities we contrast our findings with recommendations and private beliefs of real estate agents who provide services and advice for about 90 of home sales in the us

the attitudinal legacy of communist labor relations this study of workers attitudes compares data from international social survey programme issp surveys for former communist countries in europe with issp data for western countries over the perio

the structure of jibs s social network and the relevance of intra country variation a typology for future research we examine articles published in the journal of international business studies jibs and introduce a typology to support the relevance of intra country variation in international business ib based on social network theory our analysis uses multidimensional scaling to study 53 203 citations from 1158 qualifying jibs articles to determine the journal s social structure the results indicate that three current research clusters multinational enterprise knowledge development foreign entry and cultural effects and the internationalization process and national culture are based on established ib theory then we respond to calls in the literature to improve research concerning intra country variation and propose a typology of three dimensions social demographic and geographic to study the diversity of individual firm and economic activity in a country the social dimension evaluates the importance of modernist and traditionalist values the demographic dimension proposes differences between urban and rural settings and the geographic dimension discusses the relevance of border and interior locations we suggest a nested typology that unifies these three dimensions for continued use in ib future research opportunities related to jibs s social structure and the intra country variation typology are recommended

cultural adaptation of business expatriates in the host marketplace satisfaction with the host culture has been found to influence the expatriate s commitment to the local operation and to the parent company this paper investigates the role that the expatriate s consumer experiences play in the determination of his her satisfaction with the new culture market alienation has a negative effect on satisfaction but it is reduced by participation in the host marketplace further cultural knowledge was not found to be directly related to satisfaction with the host culture but rather was related indirectly through its association with participation in the host marketplace

a cross national study of managerial values this study investigated cross national differences in managerial values a total of 567 managers from twelve nations participated in the study managerial values were assessed by means of rokeach s value survey factor analysis of the eighteen instrumental values included in rokeach s value survey revealed four underlying value dimensions the value dimension that included the instrumental values broadminded capable and courageous was ranked as the most important value dimension by managers from all twelve nations national differences were found on three of the four value dimensions

the winner s curse reserve prices and endogenous entry empirical insights from ebay auctions internet auctions have recently gained widespread popularity and are one of the most successful forms of electronic commerce we examine a unique data set of ebay coin auctions to explore the determinants of bidder and seller behavior we begin by documenting a number of empirical regularities in our data set of ebay auctions next we specify and estimate a structural econometric model of bidding on ebay using our parameter estimates from this model we measure the extent of the winner s curse and simulate seller revenue under different reserve prices