Economics Insights @ CBS

The article discusses research that shows managers who are perceived as being tough and wielding power are more likely to be promoted than others. The author cites the example of drug maker Pfizer, where in 2001 the no-nonsense Hank McKinnell was hired as chief executive instead of the more collegial Karen Katen. In 2006 Pfizer got rid of McKinnel for poor performance.

This experimental study investigates how behavior changes after receiving punishment. The focus is on how proposers in a power-to-take game adjust their behavior depending on their fairness perceptions, their experienced emotions, and their interaction with responders. We find that fairness plays an important role: proposers who take what they consider to be an unfair amount experience higher intensities of prosocial emotions (shame and guilt), particularly if they are punished. This emotional experience induces proposers to lower their claims.

Many companies do not know their marketing ROI because their organizations are not set up to evaluate marketing ROI.

This article examines the population dynamics and viability of network weavers, which are organizations that provide network relations for others. An analysis of the population dynamics of the intergovernmental organizations (IGOs) that are the basis of the interstate networks that influenced global economic relations, peace, and democracy in the 1815–2000 period show that IGO founding and failure depends on the ease and value of specific interstate relations.