Complexity as a guide to understanding decision bias: A contribution to the favorite‐longshot bias debate

This paper investigates the origins of a widespread decision bias in betting markets, the favorite‐longshot bias (FLB); in particular, whether it is caused by cognitive errors on the part of bettors or by the pricing policies of bookmakers. The methodology is based on previous literature, which has suggested that: (i) races, as decision tasks for bettors, can be distinguished by their degree of complexity and their attractiveness to those with access to privileged information (insiders), (ii) cognitive errors increase as complexity increases, and (iii) bookmakers set odds in a manner to protect themselves from insiders. The degree of FLB was examined in races of varying complexity and attractiveness to insiders using a dataset of 8545 races drawn from the parallel bookmaker and pari‐mutuel markets operating in the UK in 2004. The results, interpreted in the light of the cognitive error and complexity literature, suggest that neither bettors' nor bookmakers' cognitive errors are the main cause of the bias. Rather, bettors' preferences for risk and the deliberate pricing policies of bookmakers play key roles in influencing the bias in markets where bookmakers and pari‐mutuel operators coexist. Copyright © 2008 John Wiley & Sons, Ltd.     

Extending the technology acceptance model to mobile telecommunication innovation: The existence of network externalities

• Consumer acceptance of technological innovations is crucial to marketing new products. According to the most influential model in this area, the Technology Acceptance Model (TAM), perceived usefulness (PU) and perceived ease of use (PEOU) determine users' behavioural intentions to use or purchase a system or product. In the specific context of network externalities, a sense of utility that arises from the number of users (NOU) is considered as important as technology‐specific valuation. This study conducted an empirical survey to examine the effects of TAM and network externalities on the acceptance of Multimedia Messaging Services (MMS), an innovation in the field of mobile telecommunications. The results confirm the effectiveness of the TAM and find that network externalities effect affects users' acceptance to this mobile innovations. Accordingly, the TAM can be applied to predict consumer's acceptance to the mobile telecommunication innovations in the presence of network externalities.

Copyright © 2008 John Wiley & Sons, Ltd.     

Applicant impression management in job interview: The moderating role of interviewer affectivity

In light of the organizational need to obtain talented personnel, an appropriate evaluation of applicant behaviour in the selection interview is crucial. Extending past research on applicant use of impression management (IM) tactics, this study examines the effects of a broad set of IM tactics in a field setting, and also investigates the moderating roles of two rarely tested interviewer characteristics: interviewer positive affectivity (PA) and negative affectivity (NA). Due to the nested nature of the data, consisting of 142 job applicants and 33 interviewers, we adopt hierarchical linear modelling (HLM) to examine the proposed hypotheses. The results indicate that three IM tactics (self‐focused IM, SFIM; other‐focused IM, OFIM; and non‐verbal IM, NVIM) are significantly positively related to interviewer evaluations. Furthermore, interviewer PA appears to strengthen the positive effects of SFIM tactics on interviewer evaluations, while the effects of NVIM tactics may be weaker when interviewers are high in NA. In addition, these findings suggest the importance of interviewer trait affectivity in explaining interviewer's decision‐making variability, which may lead to low inter‐rater reliability and in turn restrict the level of achievable validity.     

Effects of different packages on food product contagion: The moderating roles of mood states and product‐related information

Across two experiments conducted for this research, it is evident that different moderators do play a role in the influence of food product contagion effects. This research focuses on how mood states or product‐related information moderate contagion prime and package type. Existing studies indicate that unsealed packages can enhance the extent of the contagion effects more than sealed packages. Study 1 showed that happy people experienced stronger positive contagion effects than sad or neutral ones and that they also demonstrated stronger effects on unsealed packages compared with sealed packages. Conversely, sad people significantly enhanced the extent of negative contagion effects and experienced stronger effects on unsealed packages. Study 2, however, revealed that people receiving positive product‐related information experienced stronger positive contagion effects on unsealed packages, whereas people receiving negative product‐related information showed stronger negative contagion effects on unsealed packages. This is the first study to discuss the chosen moderators on the contagion effect. Copyright © 2015 John Wiley & Sons, Ltd.     

More than a matter of getting ‘unstuck’: flexible thinkers use more abstract representations than perseverators

Why do people perseverate, repeating prior behaviours that are no longer appropriate? Many accounts point to isolated deficits in processes such as inhibition or attention. We instead posit a fundamental difference in rule representations: flexible switchers use active representations that rely on later‐developing prefrontal cortical areas and are more abstract, whereas perseverators use latent representations that rely on earlier‐developing posterior cortical and subcortical areas and are more stimulus‐specific. Thus, although switchers and perseverators should apply the rules they use to familiar stimuli equally reliably, perseverators should show unique limitations in generalizing their rules to novel stimuli, a process that requires abstract representations. Two behavioural experiments confirmed this counterintuitive prediction early in development. Three‐year‐old children sorted cards by one rule, were asked to switch to another rule, and then were asked simply to continue their behaviour, with novel cards. Perseverators applied the rule they were using (the first rule) just as reliably as switchers applied the rule they were using (the second rule) with familiar cards; however, only switchers generalized their rule to novel cards. This finding supports an early link between active representations that support switching and abstract representations that support generalization. We interpret this synergy in terms of prefrontal cortical development.     

The Mediating Effects of Psychological Contracts on the Relationship Between Human Resource Systems and Role Behaviors: A Multilevel Analysis

Purpose  The purpose of this study was to examine the mediating effect of the psychological contracts on the relationship between human resource (HR) systems and role behavior. Design/Methodology/Approach  Multilevel analyses were conducted on data gathered from 146 knowledge workers and 28 immediate managers in 25 Taiwanese high-tech firms. Findings  Relational psychological contracts mediated the relationship between commitment-based HR systems and in-role behaviors, as well as organizational citizenship behaviors. Transactional psychological contracts did not significantly mediate these relationships. In addition, the results also indicated that commitment-based HR systems related positively to relational psychological contracts and negatively to transactional psychological contracts. Practical Implications  Commitment-based HR systems could elicit a wide range of knowledge workers’ behaviors that are beneficial to the goals of the firms. Furthermore, our findings also provide insight into, how HR systems potentially elicit employees’ role behaviors. Organizations could elicit employees’ in-role behaviors by providing financial and other non-financial, but tangible, inducements and facilitate employees’ extra-role behaviors by providing positive experiences, such as respect, commitment, and support. Originality/Value  The study is one of the primary studies to empirically examine the mediating effect of psychological contracts on HR systems and employee behaviors.

Avoiding Anxiety,Being in Denial,or Simply Stroking Self‐Esteem: Why Self‐Positivity?

This article studies the presence, resilience, and direction of the self‐positivity bias under various conditions to examine the role of self‐esteem maintenance as an important antecedent for the bias. Experiment 1 manipulates the perceptions of the uncontrollability of cancer and presence of base‐rate information as independent variables that together eliminate the self‐positivity bias in perceptions of the risk of cancer. Experiment 2 shows the same effects using 4 life events that differ in terms of valence and perceived controllability; that is, base‐rate information affects self‐estimates for uncontrollable life events, reducing the self‐positivity bias, but does not affect self‐estimates for controllable events. Experiment 3 shows that these effects only apply to optimistic individuals who fail to incorporate base‐rate information into their self‐perceptions for controllable events. In contrast, pessimists use base rates to update their self‐estimates irrespective of the controllability of the event. Overall, the pattern suggests that self‐positivity is attenuated in conditions that implicate self‐esteem. Implications for health care marketing are discussed.     

The structure of coordination in first language acquisition of Mandarin Chinese: evidence for a universal

This study exemplifies a type of cross-linguistic research which is based on the theory that certain parameters of natural language variation are central to the human competence for language. Sensitivity to these parameters allows the child to develop various specific language structures which follow from setting the parameters. Results of this study provide evidence that children are universally sensitive to one such parameter, namely, Principal Branching Direction.Data are based on results of a standardized elicited imitation test of 68 Chinese children in Taiwan between 2;0 and 4;5 with mean age of 3;3. The test is on a set of coordinate sentences. The results show that children acquiring Mandarin Chinese (a left-branching language) systematically prefer VO sentences with a backward reduction pattern ([V + V]O) over those with a forward reduction pattern (V[O + O]).Children's responses to SV coordinate sentences differ systematically from their VO responses. They very frequently reduce redundant subjects in a forward direction (in SV sentences) and do not prefer backward reduction ([S + S])V) over forward reduction (S[V + V]) in these SV sentences.This paper suggests an explanation of this apparent paradox in terms of an interaction in early language acquisition between children's sensitivity to a predominant Chinese topic-comment structure (in SV) and their sensitivity to the abstract, specifically grammatical concept of “Principal Branching Direction”.     

Elaboration and choice

Dhar and Gorlin (2013) proposed a dual-process perspective on choice. We applaud the effort to generate such a model, and we support the effort to integrate potentially disparate literatures under a general theoretical approach. In an attempt to further that goal of integration, we discuss similarities and differences between the proposed approach and the Elaboration Likelihood Model (Petty, 1977, Petty and Cacioppo, 1979, Petty and Cacioppo, 1986) — one of the earliest models of evaluative judgment to propose different mechanisms and consequences of judgments formulated at different levels of motivation and ability to process available information. In addition, because many choice settings involve familiar options that have been previously evaluated, we discuss potential implications of the literature on influences of attitudes on behavior (which can often be framed as involving a choice to act or not or to act in one way rather than another). In each case, we believe that these previous social psychological literatures provide insights that could enhance and extend the proposed model.