Leadership & Organizational Behavior

In this paper, we examine how people evaluate unusual objects and how they intuit whether others will like those objects. We focus on two predictions. First, we believe that an object's uniqueness is susceptible to framing by drawing attention toward or away from the object's unusualness. We expect such "uniqueness framing" interacts with needs for uniqueness (NFU): high NFU perceivers will like the same objects (e.g., neckties, names) more when asked to dwell on the object's uniqueness vs. typicality while low NFU perceivers will like them less.

Sometimes multiple tools may be used simultaneously or in succession in everyday mindreading. Yet surely we rely on somoe tools at some times more than others. The central question I wish to address here, and that I suggest is not well answered, is "Which tool is used when?" More complex and elegant answers to this question await us, but in the meantime I develop several claims in this chapter about which-tool-when contingencies.

Age differences in intrinsic and extrinsic motivation and the relationships of each to academic outcomes were examined in an ethnically diverse sample of 797 3rd-grade through 8th-grade children. Using independent measures, the authors found intrinsic and extrinsic motivation to be only moderately correlated, suggesting that they may be largely orthogonal dimensions of motivation in school.

Bayesian learning implies decreasing weights on prior beliefs and increasing weights on the accuracy of the analyst?s past forecast record, as the number of forecast errors comprising her forecast record (its length) increases. Consistent with this model of investor learning, empirical tests show that investors? reactions to forecast news are increasing in the product of the accuracy and length of analysts? forecast records. Moreover, the Bayesian learning predicted by our model is more descriptive of investor reactions than is a static model which predicts that investors?

Using both a linear regression method and a probability-based method, we find that on average analysts place larger than efficient weights on (i.e., they over-weight) their private information when they forecast corporate earnings. We also find that analysts over-weight more when issuing forecasts more favorable than the consensus, and over-weight less, and may even under-weight, private information when issuing forecasts less favorable than the consensus.

Combining survey responses and trading records of clients of a German retail broker, this paper examines some of the causes for the apparent failure to buy and hold a well-diversified portfolio. The subjective investor attributes gleaned from the survey help explain the variation in actual portfolio and trading choices. Self-reported risk aversion is the single most important determinant of both portfolio diversification and turnover; other things equal, investors who report being more risk tolerant hold less diversified portfolios and trade more aggressively.

A liquidity trader wishes to trade a ?xed number of shares within a certain time horizon and to minimize the mean and variance of the costs of trading. Explicit formulas for the optimal trading strategies show that risk-averse liquidity traders reduce their order sizes over time and execute a higher fraction of their total trading volume in early periods when price volatility or liquidity increases. In the presence of transaction fees, numerical simulations suggest that traders want to trade more frequently when price volatility goes up or liquidity declines.

In this chapter, I'll lay out the principal facts and controversies surrounding international flows of capital and their attendant risks. I'll review the perspectives of economic historians and economists on the implications of capital mobility, both during the first wave of globalization (prior to World War I) and during the recent wave (since 1980). I'll emphasize changes over time - especially political changes - that have weakened the case for unfettered capital mobility and have made capital flows more controversial among economists today than in the past.

This study examines the factors that influence the type and amount of trust managers have in members of their professional networks. Results indicate that affect-based trust is high in alters who are densely embedded in ego's network, provide social support, and demographically similar to ego. Cognition-based trust is higher in those with whom ego engages in instrumental exchange, and is unaffected by embeddedness or demographics.