Economics Insights @ CBS

Negotiators may use vigilant, loss-minimizing strategies or eager, gain-maximizing strategies. The present study provides evidence that preferences for these different strategies depend on negotiator role and personal orientation. In a price negotiation, buyers and prevention-focused individuals prefer vigilant strategies, whereas sellers and promotion-focused individuals prefer eager strategies.

Whether one is in one’s native culture or abroad, one’s personality can differ markedly from the personalities of the majority, thus failing to match the “cultural norm.” Our studies examined how the interaction of individual- and cultural-level personality affects people’s self-esteem and well-being.We propose a person-culture match hypothesis that predicts that when a person’s personality matches the prevalent personalities of other people in a culture, culture functions as an important amplifier of the positive effect of personality on self-esteem and subjective well-being at the individ

Large companies are usually organized into business units, yet some activities are almost always centralized in a company-wide functional unit. We first show that organizations endogenously create an incentive conflict between functional managers (who desire excessive standardization) and business-unit managers (who desire excessive local adaptation). We then study how the allocation of authority and tasks to functional and business-unit managers interacts with this endogenous incentive conflict.