Consumer Behavior

Raghunathan and Pham (1999) observed that, although of the same valence, states of anxiety and sadness have distinct effects on decision making. Results from two new experiments confirm that anxiety triggers a preference for options that are more rewarding and comforting. Our results also indicate that these effects are driven by an affect-as-information process, and are most pervasive when the source of anxiety or sadness is not salient.

A consumer's decision to rely on a friend to act as an agent depends, in part, on beliefs about the friend's knowledge. Three studies examine the role of motivational and cognitive biases in estimating friends' personalized knowledge (e.g., knowledge of one's movie preferences). Results show that estimates of close friends' knowledge are less accurate than those of less close friends for personalized but not for impersonal knowledge.

We develop discrete choice models that account for parameter driven preference dynamics. Choice model parameters may change over time because of shifting market conditions or due to changes in attribute levels over time or because of consumer learning. In this paper we show how such preference evolution can be modeled using hierarchial Bayesian state space models of discrete choice. The main feature of our approach is that it allows for the simultaneous incorporation of multiple sources of preference and choice dynamics.

Expanding upon Simon's (1955) seminal theory, this investigation compared the choice-making strategies of maximizers and satisficers, finding that maximizing tendencies, although positively correlated with objectively better decision outcomes, are also associated with more negative subjective evaluations of these decision outcomes. Specifically in the fall of their final year in school, students were administered a scale that measured maximizing tendencies and were than followed over the course of the year as they searched for jobs.

Many corporate executives view private equity as a last resort, as expensive capital that should be tapped only by companies that don't have access to presumably cheaper public equity. The reality of private equity, however, is more complex, and potentially quite rewarding, for both shareholders and management. This paper surveys some of the academic work on the costs and benefits of public vs. private equity, contrasting the private equity investment process with its public counterpart and exploring how such a process may add value.

The consumer electronics industry has been flat for several years. Hopes are now being pinned on the emergence of home networks. The theory goes that if consumers were able to "internetwork": that is, connect all their gadgets—from televisions to personal computers to digital video players to phones and anything in between—they would rush out to buy new toys and devices.

This 2005 roundtable aimed to present corporate managers and academics with a more accurate picture of how influential and sophisticated investors really think and make decisions. Panelists included Andrew Alford of Goldman Sachs Asset Management, Michael Corasaniti of Pequot Capital, Steve Galbraith of Maverick Capital, Mitch Julis of Canyon Capital, Andrew Lacey of Lazard Asset Management, Michael Mauboussin of Legg Mason, Henry McVey of Morgan Stanley, and Stephen Penman of Columbia University. Trevor Harris of Morgan Stanley moderated the discussion.

Many organizations, such as banks, airlines, telecommunications companies, and police departments, routinely use queueing models to help determine capacity levels needed to respond to experienced demands in a timely fashion. Though queueing analysis has been used in hospitals and other healthcare settings, its use in this sector is not widespread.

Managing word-of-mouth has become a significant marketing activity, as marketers try to identify opinion leaders and take advantage of the influence they wield over potential consumers.