Economics Insights @ CBS

In public-good provision, privileged groups enjoy the advantage that some of their members find it optimal to supply a positive amount of the public good. However, the inherent asymmetric nature of these groups may make the enforcement of cooperative behavior through informal sanctioning harder to accomplish. In this article, the authors experimentally investigate public-good provision in normal and privileged groups with and without decentralized punishment.

This research investigates hypotheses about differences between Chinese and American managers in the configuration of trusting relationships within their professional networks. Consistent with hypotheses about Chinese familial collectivism, an egocentric network survey found that affect- and cognition-based trust were more intertwined for Chinese than for American managers. In addition, the effect of economic exchange on affect-based trust was more positive for Chinese than for Americans, whereas the effect of friendship was more positive for Americans than for Chinese.

Purpose — For corporations seeking to boost market share or gain valuable assets, compelling turnaround opportunities seem to abound. In this paper the authors, who are veteran turnaround analysts, aim to share their experiences.

Design/methodology/approach — With so many distressed companies in need of turnaround talent and money, the paper presents lessons learned over the years by veteran specialists, which investors would be well advised to reflect on the before they leap into a thorny acquisition.