Escalation Bargaining: Theoretical Analysis and Experimental Test

The standard chicken game is a popular model of certain important real scenarios but does not allow for the escalation behaviour these are typically associated with. This is problematic if the critical, final decisions in these scenarios are sensitive to previous escalation. We introduce and analyse, theoretically and by experiment, a new game which permits escalation behaviour. Compared with an equivalent chicken game, Pareto-suboptimal outcomes are significantly more frequent. This result is inconsistent with our rational choice analysis and possible psychological roots are explored.escalation; brinkmanship; chicken game; experiments

Virtual world experimentation: an exploratory study

We explore the scientific potential of virtual worlds for experimental economics in terms of the subject pools and experimental platforms they present. Our results offer tentative, qualified support for virtual world experimentation. Overall, the be- haviour of virtual subjects recruited, incentivised and observed within Second Life across a range of five standard experimental games was not found to differ significantly from established standard results. In addition, we identify certain methodological opportunities and challenges which confront virtual world experimenters

Information richness and trust in V-commerce: implications for services marketing

Purpose: The potential for e-commerce is limited by a trust deficit when traders do not interact in a physical, bricks-and-mortar context. The theory of information richness posits that equivocal interactions, such as ones requiring trust, can be facilitated through communication media that transmit multiple cues interactively. We examine the potential of information-rich virtual worlds to reduce this trust deficit compared with more traditional web-based e-tailing environments. Design/Methodology: Rather than focusing on stated intentions we adopt an experimental approach to measure behaviour. Participants receive performance-related financial incentives to perform trust games in different information-rich treatments that represent three retail environments: a physical environment representing bricks-and-mortar trade, an electronic environment representing web-based online retailing and a virtual environment representing virtual world retail. Findings: We find that the two dimensions of trust significantly differ between the treatments. In particular, as hypothesised, both trustingness and trustworthiness are higher in the virtual than in the electronic environment. However, contrary to our hypotheses, physical trade is not associated with greater trust than virtual trade. Implications: We extend previous research by demonstrating how the information richness of the virtual world interface can promote e-commerce by deepening trust between trading partners. Our research also complements existing work that approaches product and service interfaces through the lens of servicescapes. The findings also contribute towards the development of services marketing practice and the design of e-commerce environments

The influence of influence: the effect of task repetition on persuaders and persuadees

We investigate how the experience of influencing and of being influenced impacts on a subsequent, immediate attempt to influence and be influenced. We conduct an experiment using participant dyads matched in a round-robin design which systematically measures the influence one individual has on another in a decision task using a short, anonymous, computer mediated, text based exchange. Findings show that being influenced in a round of the task tends to be positively related to being influenced in the subsequent two rounds with the effect weakening each time. We find no impact on the ability to influence

Religion, discrimination and trust across three cultures

We propose that religion impacts trust and trustworthiness in ways that depend on how individuals are socially identified and connected. Religiosity and religious affiliation may serve as markers for statistical discrimination. Further, affiliation to the same religion may enhance group identity, or affiliation irrespective of creed may lend social identity, and in turn induce taste-based discrimination. Religiosity may also relate to general prejudice. We test these hypotheses across three culturally diverse countries. Participants' willingness to discriminate, beliefs of how trustworthy or trusting others are, as well as actual trust and trustworthiness are measured incentive compatibly. We find that interpersonal similarity in religiosity and affiliation promote trust through beliefs of reciprocity. Religious participants also believe that those belonging to some faith are trustworthier, but invest more trust only in those of the same religion—religiosity amplifies this effect. Across non-religious categories, whereas more religious participants are more willing to discriminate, less religious participants are as likely to display group biases

Information richness and trust in V-commerce: implications for services marketing

Purpose: The potential for e-commerce is limited by a trust deficit when traders do not interact in a physical, bricks-and-mortar context. The theory of information richness posits that equivocal interactions, such as ones requiring trust, can be facilitated through communication media that transmit multiple cues interactively. We examine the potential of information-rich virtual worlds to reduce this trust deficit compared with more traditional web-based e-tailing environments.Design/Methodology: Rather than focusing on stated intentions we adopt an experimental approach to measure behaviour. Participants receive performance-related financial incentives to perform trust games in different information-rich treatments that represent three retail environments: a physical environment representing bricks-and-mortar trade, an electronic environment representing web-based online retailing and a virtual environment representing virtual world retail.Findings: We find that the two dimensions of trust significantly differ between the treatments. In particular, as hypothesised, both trustingness and trustworthiness are higher in the virtual than in the electronic environment. However, contrary to our hypotheses, physical trade is not associated with greater trust than virtual trade.Implications: We extend previous research by demonstrating how the information richness of the virtual world interface can promote e-commerce by deepening trust between trading partners. Our research also complements existing work that approaches product and service interfaces through the lens of servicescapes. The findings also contribute towards the development of services marketing practice and the design of e-commerce environments

Demonstrability, difficulty and persuasion: An experimental study of advice taking

© 2019 Elsevier B.V. Self-interested paid advisors should try to sell their solutions no matter how they came about. However, we present evidence that advisor persuasiveness depends on two dimensions of their prior problem solving: solution difficulty and demonstrability. We report a laboratory experiment with repeated advisor-client interactions where both these dimensions are independently varied. Persuasion rises in solution demonstrability and falls in difficulty. The reason is non-optimising behaviour: Advisors lacking in confidence fail to conceal difficult problem solving and those receiving their advice baulk when the proposed solution lacks objective success criteria irrespective of its promise. Our findings suggest differential prospects for persuasion and selling of different kinds of products, services and ideas

I need to make a choice between potential management actions

Managers are sometimes faced with choosing between alternative management actions. For example, selecting between alternative sites for restoration or between alternative conservation strategies

I need to implement a social and economic monitoring program for an area of marine estate.

Designing social and economic monitoring can seem like a daunting task. In this factsheet we provide a few key pointers to get you started, highlighting a systematic approach from objectives of monitoring to data