Economics Insights @ CBS

We consider the compensation design problem of a firm that hires a salesperson to exert effort to increase demand. We assume both demand and supply to be uncertain with sales being the smaller of demand and supply and assume that, if demand exceeds supply, then unmet demand is unobservable (demand censoring).

Dietary variety increases food intake, but it is unclear if sensory differences elicit increases in eating-related behaviors. Using a 4×3 between-subject pilot experiment, we examined if increasing sensory variety (control, color, shape, both color and shape) and priming individuals to notice differences or similarities in the foods (positive, neutral, negative) influenced ad libitum proximal intake, liking, and willingness to purchase pears and peppers among 164 Greater Boston adults >18y/o.

When carefully planned, language can be a strategic tool for managing a brand’s communication to target customers and for building brand equity. This paper explains how and why managers should conduct a brand language audit -- a comprehensive inventory of the many and varied linguistic devices used by brands in the category -- and then use the findings from the audit to develop a brand language brief. The brand language brief is a blueprint for crafting a distinctive language for a brand.

The tendency to see life as zero-sum exacerbates political conflicts. Six studies (N = 3223) examine the relationship between political ideology and zero-sum thinking: the belief that one party's gains can only be obtained at the expense of another party's losses. We find that both liberals and conservatives view life as zero-sum when it benefits them to do so. Whereas conservatives exhibit zero-sum thinking when the status quo is challenged, liberals do so when the status quo is being upheld.