Publication database

© 2014 Product Development & Management Association

This paper provides a systematic analysis of identification in linear social interactions models. This is both a theoretical and an econometric exercise as the analysis is linked to a rigorously delineated model of interdependent decisions. We develop an incomplete information game that describes individual choices in the presence of social interactions. The equilibrium strategy profiles are linear. Standard models in the empirical social interactions literature are shown to be exact or approximate special cases of our general framework, which in turn provides a basis for understanding the microeconomic foundations of those models. We consider identification of both endogenous (peer) and contextual social effects under alternative assumptions on a priori information about network structure available to an analyst, and contrast the informational content of individual-level and aggregated data. Finally, we discuss potential ramifications for identification of endogenous group selection and differences between the information sets of analysts and agents.

With permission of the University of Chicago Press

Negotiating the pursuit of multiple goals often requires making difficult trade-offs between goals. In these situations, consumers can benefit from using products that help them pursue several goals at the same time. But do consumers always prefer these multipurpose products? We propose that consumers’ incidental mood state alters perceptions of products in a multiple-goals context. Four studies demonstrate that being in a positive mood amplifies perceptions of differences between multiple conflicting goals. As a consequence, consumers are less likely to evaluate multipurpose products as being able to serve multiple distinct goals simultaneously. We conclude by discussing implications of these findings for marketers of multipurpose products.

With permission of Elsevier

We investigate the effect of increased company involvement on consumer reactions to companies and nonprofits in business–nonprofit alliances to show that consumer reactions to the two parties in such alliances can, under certain conditions, diverge from each other. Specifically, we show that increased company involvement results in more positive consumer attitudes toward companies with low (but not high) reputation, while it leads to more positive consumer attitude toward nonprofits that partner with companies with high (but not low) reputation. Furthermore, we demonstrate that these effects are independent of the perceived fit between the company and nonprofit forming the alliance. Finally, we show that when consumers elaborate on company motives, the observed effects of increased company involvement are mitigated.

© Springer Science+Business Media New York 2013. With permission of Springer

Many companies today believe that corporate social responsibility (CSR) acts as a reservoir of goodwill, insulating the firm from the negative impacts of a crisis. Yet, the impact of CSR on public reaction to corporate crises is more complex. Drawing on research on stakeholder reactions to CSR and—more specifically—corporate crises, we present a contingent framework for understanding the roles of CSR in corporate crises and how to manage it. This framework posits that CSR plays four important roles: it (1) increases stakeholders’ attention to crises, (2) affects blame attributions, (3) raises expectations, and (4) changes stakeholders’ evaluations of crisis situations. Several factors underlying these roles are also discussed. Overall, this article underscores that while CSR may insulate companies and mitigate stakeholders’ negative responses in some cases, in others it may actually lead to the opposite effect, amplifying the negative impact of a crisis. The article ends with a brief discussion of the implications of our framework for effective crisis management strategies in the age of CSR.

With permission of Elsevier

We show that eurozone bank risks during 2007-2013 can be understood as “carry trade” behavior. Bank equity returns load positively on peripheral (Greece, Italy, Ireland, Portugal, Spain, or GIIPS) bond returns and negatively on German government bond returns, which generated “carry” until the deteriorating GIIPS bond returns adversely affected bank balance sheets. We find support for risk-shifting and regulatory arbitrage motives at banks in that carry trade behavior is stronger for large banks and banks with low capital ratios and high risk-weighted assets. We also find evidence for home bias and moral suasion in the subsample of GIIPS banks.

With permission of Elsevier

This paper focuses on women leaders’ self-views as women and leaders and explores consequences of positive social identity (i.e., positive evaluation of the social category in question) for women in leadership positions. We hypothesized that holding positive gender and leader identities reduced perceived conflict between women’s gender and leader identities and thereby resulted in favorable psychological and motivational consequences. Studies 1 and 2 revealed that positive gender identity indeed reduced women leaders’ identity conflict. In Study 3, we found that by lessening identity conflict, positive gender identity reduced stress, increased life satisfaction, and caused women to construe leading more as an attractive goal than a duty. In contrast, positive leader identity directly affected women’s motivation to lead, but did not reduce their identity conflict. Overall, these results emphasize the protective role of women’s positive gender identity for their advancement in organizations and leader identity development.

With permission of Elsevier