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The authors use laboratory experiments to test two self-assessment tax mechanisms for facilitating land assembly. One mechanism is incentive compatible with a complex tax function, while the other uses a flat tax rate to mitigate implementation concerns. Sellers publicly declare a price for their land. Overstating its true value is penalized by using the declared price to assess a property tax; understating its value is penalized by allowing developers to buy the property at the declared price. The authors find that both mechanisms increase the rate of land assembly and gains from trade relative to a control in which sellers’ price declarations have no effect on their taxes. However, these effects are statistically insignificant or transitory. The assembly rates in our self-assessment treatments are markedly higher than those of prior experimental studies in which the buyer faces bargaining frictions, such as costly delay or capital constraints.

This paper uses a laboratory experiment to examine the effect of accountability pressure as a monitoring control tool to mitigate subordinates' propensity to create budgetary slack. The results suggest that budgetary slack is (lowest) highest when accountability pressure is (present) absent under a private information situation. The results further reveal that accountability pressure is positively associated with subordinates' perceived levels of honesty, which in turn is negatively associated with budgetary slack creation. The findings of this paper have important theoretical and practical implications for budgetary control systems design.

Like conflict in general, budgetary conflict is perceived by conflicting parties as a zero-sum game or distributive: one party's gain is the other party's loss. We identify an organizational culture that promotes this view as “traditional.” We propose that changing certain elements of organizational culture is sufficient to produce more integrative, nonzero-sum outcomes. We call this changed organizational culture “empowering.” We propose and test the effects of an empowering organizational culture (EOC) in contrast to the traditional organizational culture (TOC). We hypothesize that an EOC would produce more integrative conflict resolution than the typical TOC. Based on our review of the literature, we identify two elements of the EOC that are essential in producing more integrative solutions to budgetary conflict. The two elements that we simultaneously manipulate are the superior's empowering style (or lack thereof) as reflected in encouragement to freely negotiate, and the superior's intervention process in failed negotiations (a process that encourages the search for integrative solutions and avoids imposed compromises that dampen the desire to negotiate). Using a laboratory experiment, 84 subjects forming 42 dyads negotiated the allocation of discretionary budgets face-to-face. The results of the experiment confirm our hypotheses that the EOC produces more integrative budget negotiation outcomes, greater convergence, and greater satisfaction with the outcome than TOC.

This chapter explores how electronic affective displays may influence individual perceptions, behavior and performance by conducting an exploratory analysis using a sample of real work emails (study 1), along with a laboratory experiment (study 2). The findings from both studies indicate that positive affective displays may have a stronger impact on individual perceptions (study 1) and invoke greater reciprocity from electronic partners (study 2) than negative affective displays. Moreover, some interesting gender effects with respect to affective displays and individual negotiation performance are observed. The implications for the field, along with limitations of the current research, are discussed.

This paper provides a general comparison between the ethos, methodological mission, and theoretical standpoint of the New Iowa School, established by Carl Couch and his students and Second Life, a three dimensional virtual world that invites particular forms of sociation. Despite differences in orientation and purpose, as well as biases in communication, we propose that the methodological and conceptual emphasis underlying the research generated from New Iowa School experimental studies can provide a useful framework for research into the virtual worlds created in Second Life. In the course of citing similarities and differences between the New Iowa School and Second Life, we also note that contrived worlds in laboratories and virtual worlds in user domains not only have relevant analogical processes to outside, in situ social worlds, but consist of social stages for performances that have application to the various social stages constructed by actors in the real world. In conclusion, we suggest that the New Iowa School and Second Life represent different but compatible realities in their own right, that the conceptual depth associated with the New Iowa School can inform research into Second Life interactions, and that each offer insights into the external worlds inhabited by real actors who navigate across time and space in their everyday lives.

The authors link High-Involvement Work Systems (HIWS) with social network research both theoretically and methodologically by conceiving of these work systems as networks and by using network methods to better understand and evaluate these arrangements. Their approach is to integrate the institutional perspective of industrial relations with the analytical methodology of social network analysis. They use a longitudinal data set collected before and after the introduction of an HIWS in a pharmaceutical company to measure the impact on patterns of employee communication as well as communication between the union and management. Improvements were found in customer satisfaction, and positive effects were seen in the pattern and structure of organizational communication with an increase in the density of lateral and vertical interdepartmental communication, and a decrease in hierarchy. These results were confirmed using survey data on employee perceptions of particular types of communication and interviews with employees at various levels of authority.

A book on case study research would be remiss without a chapter that introduces the reader to relevant literature on personal exchanges and face-to-face talk. Chapter 9 offers a conceptual property–space analysis for theory and research on personal exchanges including talk. The chapter describes a study on face-to-face conversation analysis (i.e., talk) in a buyer–seller context. The study includes examining forty transactions between actual insurance salespersons (n=3) and prospective clients (n=57) interacting in field settings. The chapter reports the relationships between purchase behavior and the frequency of key orientation and bargaining statements made by the salespersons and customers. The findings support the importance of studying social factors, influence, and situation variables in constructing a general conceptualization of exchange relationships.

The act of consolidating multiple parcels of land to form a single larger parcel is known as land assembly. Laboratory experiments have enabled researchers to explore how various factors, environments, and institutions hinder or assist the aggregation process. This chapter surveys the experimental literature and highlights the experimental design used in those studies, as well as their main findings.