Leadership & Organizational Behavior

Mental state inferences - judgments about what others think, want, and feel - are central to social life. Models of such "mind-reading" have considered main effects, including social projection and stereotyping, but have not specified the conditions that govern when these tools will be used. This paper develops such a model, claiming that when perceivers assume an initial general sense of similarity to a target, they engage in greater projection and less stereotyping. Three studies featuring manipulations of similarity supported this claim.

The current experiment explored the effect of activating a counterfactual mind-set on the discussion of unique information and group judgment accuracy. Evidence suggests that a counterfactual mind-set is characterized by a focused, analytic mental state and, when activated at the group level, improves group judgment accuracy in the murder mystery paradigm (a hidden profile task).

This empirical investigation tests the hypothesis that the benefits of personal choosing are restricted to choices made from among attractive alternatives. Findings from vignette and laboratory studies show that, contrary to people's self-predictions, choosers only proved more satisfied than non-choosers when selecting from among liked alternatives. When selecting from among disliked alternatives, the reverse is observed - that is, non-choosers proved more satisfied with the decision outcome than choosers.

The Millennium Date Change (often referred to as Y2K) was anticipated to be a major liquidity event by many financial and corporate institutions as well as the central banks around the world. The timing of the event was foreseeable and thus satisfies the assumptions in the economic theory on public provision of private liquidity. We apply the theory to understand the liquidity premium in financial markets and the actions of the U.S. central bank in the period surrounding Y2K.

In asset pricing models, the uncertainty surrounding firm fundamentals plays a central role, driving expected returns, volatility, and valuation ratios. In this paper, we extract estimates of the uncertainty embedded in earnings announcements using option prices. To do this, we take seriously the fact that the timing of earnings announcements, although not the response of equity prices, is known in advance. We develop a no-arbitrage option pricing model incorporating jumps on earnings announcement dates.

We hypothesized that the activation of a counterfactual mind-set minimizes group decision errors caused by the failure of groups to discuss unshared, uniquely held information. In two experiments, we manipulated the salience of counterfactual thoughts in a pre-task scenario and then had groups of three individuals discuss a murder mystery case. In both experiments, counterfactual mind-sets increased the discussion of unshared information and helped groups to identify the correct murder suspect.

Disputes by their nature involve contentious behavior. If one attributes such behavior to underlying personality traits, these attributions can be quite damning. The current research investigated negative trait attributions and their impact on dispute resolution decisions. We hypothesized that judging one's opponent to be low in agreeableness and high in emotionality (e.g. stubborn and volatile) shifts one's preference towards more formal procedures ? formal in the sense that a third party judge controls the process and outcome.

This paper presents an approach to modeling workers where human performance has a significant impact on system productivity. Highly technical industries such as semiconductor manufacturing and service industries like banking are relying on fewer but more skilled workers. In these systems, productivity depends on worker availability and organization; therefore, modeling system performance may require accurate representations of individual worker behavior.

This paper examines transfer pricing in multinational firms when individual divisions face different income tax rates. Assuming that a firm decouples its internal transfer price from the arm's length price used for tax purposes, we analyze the effectiveness of alternative pricing rules under both cost- and market-based transfer pricing. In a tax-free world, Hirshleifer (1956) advocated that the internal transfer price be set equal to the marginal cost of the supplying division.