Termination of information evaluation in auditing

A screening decision is about whether a candidate fails to meet a decision maker's criteria and must be rejected, or whether it meets the criteria and can be accepted. Image theory contends that screening decisions are based on a simple, noncompensatory process that focuses solely upon the candidate's negative attributes. This contention has received empirical support in a job screening context in which students role-played a hypothetical person seeking a job. But how robust is image theory's prediction? The present work was done in the context of professional auditors screening prospective clients. The client screening context is a particularly interesting setting to test the implications of image theory. If auditors reject clients with negative attributes, as predicted by image theory, this will indicate that some clients are being denied access to a socially useful service. Further, auditors can accept prospective clients with negative attributes and simply adjust the audit plan and fees to compensate for the client's riskiness. Thus, it is not clear that the preliminary findings obtained in a job screening context will generalize to the audit context. On the other hand, results consistent with the image theory prediction would suggest a robust theory. Even in the client screening context, where auditors used their own criteria to screen prospective clients, we found overwhelming support for image theory's view of screening. The results indicate the potential payoffs of image theory as a robust framework to address audit and other substantive problems. Implications of a noncompensatory, negative oriented, client screening strategy are discussed.     

Preference structures and threshold models

Preferences are often represented in terms of a function, in the deterministic case as well as in the probabilistic case. In the present paper we develop a new numerical representation of preference structures for which the strict preference relation (P) is without circuit but not necessarily transitive. Moreover, we investigate the consequences of the representation for the usual preference structures. In particular, we propose new formulations for the numerical representation of the interval order structure.     

Decomposition of multivariate utility functions in non-additive expected utility theory

In expected utility many results have been derived that give necessary and/or sufficient conditions for a multivariate utility function to be decomposable into lower-dimensional functions. In particular, multilinear, multiplicative and additive decompositions have been widely discussed. These utility functions can be more easily assessed in practical situations. In this paper we present a theory of decomposition in the context of nonadditive expected utility such as anticipated utility or Choquet expected utility. We show that many of the results used in conventional expected utility carry over to these more general frameworks. If preferences over lotteries depend only on the marginal probability distributions, then in expected utility the utility function is additively decomposable. We show that in anticipated utility the marginality condition implies not only that the utility function is additively decomposable but also that the distortion function is the identity function. We further demonstrate that a decision maker who is bivariate risk neutral has a utility function that is additively decomposable and a distortion function q for which q(½) = ½.     

A Longitudinal Person-Centered Perspective on Positive and Negative Affect at Work

Abstract

This research examines how the direction and intensity of employee’s positive and negative affect at work combine within different profiles, and the relations between these profiles and theoretically-relevant predictors (psychological need satisfaction and supervisor autonomy support) and outcomes (work-family conflict, absenteeism, and turnover intentions). A total sample of 491 firefighters completed our measures initially, and 139 of those completed the same measures again four months later, allowing us to examine the stability of these affect profiles over time. Latent profile analyses and latent transition analyses revealed five identical profiles across the two measurements occasions: (1) Low Negative Affect Facilitators; (2) Moderately Low Positive Affect Incapacitators; (3) High Positive Affect Facilitators; (4) Very Low Positive Affect Incapacitators; and (5) Normative. Membership into Profiles 3, 4, and 5 was very stable over time. In contrast, Profiles 1 and 2 were associated with a highly unstable membership over time. The highest levels of work-family conflict, absenteeism, and turnover intentions were associated with the Very Low Positive Affect Incapacitators. In contrast, the lowest levels of turnover intentions were associated with the Low Negative Affect Facilitators and High Positive Affect Facilitators.     

Taking visual disability into account: Explaining failure to experts and non-experts

The present study was designed to investigate visually handicapped students' explanations for failure when the motive to maintain or enhance self-esteem was in conflict with the motive to present a favorable social image. Subjects experienced manipulated failure in a text comprehension task and were subsequently asked to give causal and responsibility attributions in the presence of either a visually handicapped or a non-handicapped experimenter. It was expected that visually disabled participants would claim a handicap-bonus from the non-handicapped experimenter by explicitly presenting non-defensive attributions and accounts as well as handicap-related responses, while defensive explanations should be more pronounced when faced with a blind experimenter. The data provide support for the existence of presumed social expectations as determinants of individuals' verbal self-presentations.     

Utility maximization and melioration: Internalities in individual choice

How do people go about choosing between alternatives in relatively simple settings? This study explores some of the variables that past work suggests may be relevant. Volunteer subjects worked for money in six procedures in which the probability of a payment from either of two alternatives was 1.0, but the rate of pay (i.e. the speed with which a payment was delivered or the size of the payment) interacted with the subjects recent allocation of choices, which we define as the ‘internalities’. Because of the internalities, choosing the currently more profitable alternative did not maximize total earnings. Subjects were more likely to fail to maximize when the interaction between present pay and past choices was spread over longer sequences of choices, or when the reward variable was the speed, rather than the value, of each payment. Subjects often disregarded the internalities and were instead guided by the current yields of the two alternatives, which is a frequently observed tendency, called ‘melioration’, in experiments on choices by animals. The tendency toward melioration was only partially counteracted by explicit instructions on how to maximize earnings. We discuss a theoretical framework for melioration that postulates both motivational and cognitive sources.     

Selecting a new technology strategy using multiattribute,multilevel decision trees

Research indicates that selecting a strategy to best exploit a new technology is a complex decision-making process. The task involves making a series of decisions with multiple alternatives, each to be evaluated by multiple criteria whose values have high levels of uncertainty. This paper presents a methodology for modelling a new technology decision using decision trees and an optimizing algorithm. A problem of a mining company considering the adoption of new technology is used to illustrate the decision-making task and modelling methodology. A numerical solution to the case demonstrates the potential of the optimizing technique in strategy selection.     

The effect of token reinforcement on McCarthy Scale performance for white preschoolers of low and high social position

In Study 1, the effect of making tokens contingent on correct performance of low social position preschoolers on the McCarthy Scales of Children's Abilitieswas examined. Preschoolers in a token reinforcement group scored significantly higher (mean=8 IQ points) than subjects in a control group. In Study 2, the effect of tokens on McCarthyresults was examined as a function of social position in a 2×2 design. The high social position control group scored significantly above the low social position control. The low social position token reinforcement group, however, performed as well as both the high social position control and token reinforcement groups. Use of systematic reinforcement contingencies to reduce test error is discussed.