Computer-Aided Tools in Negotiation: Negotiable Issues, Counterfactual Thinking, and Satisfaction

Negotiations research has identified both economic and social-psychological outcomes are important for negotiations. Despite the economic advantages of having multiple issues to negotiate, inconsistencies exist between objective economic outcomes and negotiator satisfaction. Although having more negotiable issues yields better objective payoffs, it can result in more thoughts about different possible outcomes. Such counterfactual thoughts about different outcomes can reduce overall satisfaction due to increased cognitive complexity and thoughts about different outcomes. In this study, we explore how information technology can influence negotiator satisfaction and better manage counterfactual thoughts and post-negotiation satisfaction. Results support the prediction that having a computer aid to better manage cognitively complex issues, even a relatively simple one, reduces participants’ counterfactual thoughts about better possible outcomes. As a result, the use of some type of technology—even a simple technology such as a spreadsheet—may improve overall negotiator satisfaction, while maintaining desirable economic outcomes

After the Bubble: The Survival and Ownership of Internet Marketplaces for Farmers and Agribusiness

This paper presents a theory of how industry structure and beliefs about Internet marketplace use have driven choice and ownership of marketplaces. The theory's predictions suggest that surviving Internet marketplaces will be those with strong historical linkages in an industry and those owned by or affiliated with major commodity buyers. Comparisons of these predictions with actual outcomes provide validation of the theory. Where predictions differ from results, observations are made as to the nature of the deviations.agricultural markets, electronic commerce, Internet markets, network externalities, technology adoption, Agribusiness,

Rethinking Electricity Restructuring

Electric utility restructuring was initiated in the 1990s to remedy the problem of relatively high electricity costs in the Northeast and California. While politicians hoped that reform would allow low-cost electricity to flow to highcost states and that competition would reduce prices, economists wanted reform to eliminate regulatory incentives to overbuild generating capacity and spur the introduction of real-time prices for electricity. Unfortunately, high-cost states have seen little price relief, and competition has had a negligible impact on prices. Meanwhile, the California crisis of 2000-2001 has led many states to adopt policies that would once again encourage excess capacity. Finally, real-time pricing, although the subject of experiments, has yet to emerge. Most arresting, however, is the fact that restructuring contributed to the severity of the 2000-2001 California electricity crisis and (some scholars also argue) the August 2003 blackout in the Northeast, without delivering many efficiency gains. The poor track record of restructuring stems from systemic problems inherent in the reforms themselves. We recommend total abandonment of restructuring and a more thoroughgoing embrace of markets than contemplated in current restructuring initiatives. But we recognize that such reforms are politically difficult to achieve. A second-best alternative would be for those states that have already embraced restructuring to return to an updated version of the old, vertically integrated, regulated status quo. It's likely that such an arrangement would not be that different from the arrangements that would have developed under laissez faire

The Future of the Japanese Financial System

The purpose of this paper is to consider the strengths and weaknesses of the Japanese financial system and to propose possible changes for the future. The apparent reversal in opinions on the effectiveness of the Japanese and US financial systems in recent years suggests a long term view should be taken. All financial systems have problems in the short term and it is important not to put too much weight on these. Section 2 briefly considers the historical development and the current differences between the Japanese and US financial systems. Section 3 considers the functions of a financial system and how the Japanese and US systems have performed these functions. Suggestions for reforms for Japan are outlined in Section 4 and Section 5 contains concluding remarks. This paper was presented at the Financial Institutions Center's October 1996 conference on "

Understanding Digital Technology’s Evolution and the Path of Measured Productivity Growth: Present and Future in the Mirror of the Past

Three styles of explanation have been advanced by economists seeking to account for the so-called 'productivity paradox'. The coincidence of a persisting slowdown in the growth of measured total factor productivity (TFP) in the US, since the mid-1970's, with the wave of information technology (It) innovations, is said by some to be an illusion due to the mismeasurement of real output growth; by others to expose the mistaken expectations about the benefits of computerization; and by still others to reflect the amount of time, and the volume of intangible investments in 'learning', and the time required for ancillary innovations that allow the new digital technologies to be applied in ways that are reflected in measured productivity growth. This paper shows that rather than viewing these as competing hypotheses, the dynamics of the transition to a new technological and economic regime based upon a general purpose technology (GPT) should be understood to be likely to give rise to all three 'effects.' It more fully articulates and supports this thesis, which was first advanced in the 'computer and dynamo' papers by David (1990, 1991). The relevance of that historical experience is re-asserted and supported by further evidence rebutting skeptics who have argued that the diffusion of electrification and computerization have little in common. New evidence is produced about the links between IT use, mass customization, and the upward bias of output price deflators arising from the method used to 'chain in' new products prices. The measurement bias due to the exclusion of intangible investments from the scope of the official national product accounts also is examined. Further, it is argued that the development of the general-purpose PC delayed the re-organization of businesses along lines that would have more directly raised task productivity, even though the technologies yielded positive 'revenue productivity' gains for large companies. The paper concludes by indicating the emerging technical and organizational developments that are likely to deliver a sustained surge of measured TFP growth during the decades that lie immediately ahead.

Workshop on NASA workstation technology

RIACS hosted a workshop which was designed to foster communication among those people within NASA working on workstation related technology, to share technology, and to learn about new developments and futures in the larger university and industrial workstation communities. Herein, the workshop is documented along with its conclusions. It was learned that there is both a large amount of commonality of requirements and a wide variation in the modernness of in-use technology among the represented NASA centers

An Overview of Economic Approaches to Information Security Management

The increasing concerns of clients, particularly in online commerce, plus the impact of legislations on information security have compelled companies to put more resources in information security. As a result, senior managers in many organizations are now expressing a much greater interest in information security. However, the largest body of research related to preventing breaches is technical, focusing on such issues as encryption and access control. In contrast, research related to the economic aspects of information security is small but rapidly growing. The goal of this technical note is twofold: i) to provide the reader with an structured overview of the economic approaches to information security and ii) to identify potential research directions

Competition and Cooperation in Divisible Good Auctions: An Experimental Examination

An experimental approach is used to examine the performance of three different multi-unit auction designs: discriminatory, uniform-price with fixed supply, and uniform-price with endogenous supply. We find that the strategies of the individual bidders and the aggregate demand curves are inconsistent with theoretically identified equilibrium strategies. The discriminatory auction is found to be more susceptible to collusion than are the uniform-price auctions, and so contrary to theoretical predictions and previous experimental results, the discriminatory auction provides the lowest average revenue. Consistent with theoretical predictions, bidder demands are more elastic with reducible supply or discriminatory pricing than in the uniform-price auction with fixed supply. Despite a lack of a priori differences across bidders, the discriminatory auction results in significantly more symmetric allocations.Divisible good, Auctions, Experimental economics

Environmental analysis for application layer networks

Die zunehmende Vernetzung von Rechnern über das Internet lies die Vision von Application Layer Netzwerken aufkommen. Sie umfassen Overlay Netzwerke wie beispielsweise Peer-to-Peer Netzwerke und Grid Infrastrukturen unter Verwendung des TCP/IP Protokolls. Ihre gemeinsame Eigenschaft ist die redundante, verteilte Bereitstellung und der Zugang zu Daten-, Rechen- und Anwendungsdiensten, während sie die Heterogenität der Infrastruktur vor dem Nutzer verbergen. In dieser Arbeit werden die Anforderungen, die diese Netzwerke an ökonomische Allokationsmechanismen stellen, untersucht. Die Analyse erfolgt anhand eines Marktanalyseprozesses für einen zentralen Auktionsmechanismus und einen katallaktischen Markt. --Grid Computing