Theory →
- 02 Jul 2013
- Working Paper Summaries
Religion, Politician Identity, and Development Outcomes: Evidence from India
Minority social groups may be disadvantaged by policy choices made by democratically elected leaders. It is therefore pertinent to consider whether increasing the political representation of minority groups improves their outcomes. This paper investigates whether the religious identity of state legislators in India influences development outcomes, both for citizens of their religious group and for the population as a whole. Results show that raising the share of Muslim legislators in individual districts leads to a large and statistically significant decline in infant and neonatal mortality rates. Importantly, they find no significant difference in the impact of Muslim political representation on Muslim compared with non-Muslim households. Indeed, the estimated coefficients indicate smaller beneficial impacts for Muslim children. Overall, these findings contribute to a recent literature on the relationship between religion and development, and to the literature on politician identity. Key concepts include: In this study, health and education results show a consistent pattern whereby raising the share of Muslims in India's state assemblies improves developmental outcomes for children overall. There is no evidence of differential benefits flowing to Muslim children. Perhaps surprisingly, gains in child mortality are concentrated among non-Muslim households. Other literature has examined the relevance of the ethnicity and gender of politicians. This study provides the first evidence for religion. This study is timely given the increasing politicization of religion in India and the frequency of Hindu-Muslim violence. As of the 2001 census, India had the third largest Muslim population in the world. Muslims in India are, on average, poorer than Hindus. Closed for comment; 0 Comments.
- 27 Jun 2013
- Working Paper Summaries
Social Norms Versus Social Responsibility: Punishing Transgressions Under Conflicting Obligations
Laws and regulations provide guidelines for how to punish transgressions, but ultimately, individuals make the decisions about whether and how much to punish alleged wrongdoers. Many people feel inclined to treat wrongdoers preferentially in certain contexts. For example, people may be tempted to give people a break on "special days" such as birthdays because birthdays are part of a larger class of days with social or religious significance that produce strong norms of helping, kindness, and forgiveness. This study examines what happens when those with the authority to punish find themselves in situations that encourage leniency, specifically on offenders' birthdays. Examining over 134,000 arrest records for driving under the influence (DUI offenses) in the state of Washington during a ten-year period, the researchers find that, counter to predictions, police officers are less likely to be lenient toward marginal offenders (i.e., those just under the 0.08 BAC per se threshold) on their birthdays than on any other day. Overall, the paper argues that exploring how people respond to dual pressures provides insight into how they reconcile competing motivations, whether they can correctly compensate for biases, and additional ways in which discretion may be problematic. Individuals with the responsibility to punish behave differently in the presence of a social norm to treat someone leniently than they do in the absence of that norm. However, contrary to common intuition, the resolution of this tension results in harsher treatment of offenders rather than leniency. Key concepts include: Subtle contextual factors play an important role in how people make decisions about punishment. Results of this paper help illuminate how discretion is exercised, furthering knowledge of how discrimination operates. The paper also contributes to knowledge about how social norms affect behavior, specifically examining how individuals behave when two normative motivations collide. When authority figures have discretion over punishment decisions, being confronted with a social norm of leniency causes a negative reaction, which leads them to punish transgressors more harshly. Authorities with discretion over punishment should be vigilant about how they exercise that discretion in the face of norms that may motivate them toward leniency, lest they overcompensate. Closed for comment; 0 Comments.
- 24 Jun 2013
- Research & Ideas
Is Your iPhone Turning You Into a Wimp?
The body posture inherent in operating everyday gadgets affects not only your back, but your behavior. According to a new study by Maarten Bos and Amy Cuddy, operating a relatively large device inspires more assertive behavior than working on a small one. Closed for comment; 0 Comments.
- 03 Jun 2013
- Research & Ideas
The Power of Rituals in Life, Death, and Business
Experimental research by Michael I. Norton, Francesca Gino, and colleagues proves multiple benefits of using rituals. Not only do they have the power to alleviate grief, but they also serve to enhance the experience of consuming food—even something as mundane as a carrot. Closed for comment; 0 Comments.
- 29 May 2013
- Research & Ideas
Faculty Symposium Showcases Breadth of Research
Faculty present their latest research on the human tendency toward dishonesty, the use of crowdsourcing to solve major scientific problems, and the impact of private equity investments. Closed for comment; 0 Comments.
- 22 May 2013
- Working Paper Summaries
Hidden Structure: Using Network Methods to Map System Architecture
All complex systems can be described in terms of their architecture, that is, as a nested hierarchy of subsystems. Despite a wealth of research highlighting the importance of understanding system architecture, however, there is little empirical evidence on the actual architectural patterns observed across large numbers of real world systems. In this paper, the authors developed robust and reliable methods to detect the core components in a complex system, to establish whether these systems possess a core-periphery structure, and to measure important elements of these structures. Overall, the findings represent a first step in establishing some stylized facts about the structure of real-world systems. Key concepts include: The majority of systems analyzed in this non-random sample—67 percent to 76 percent—possess a core-periphery structure. Another 20 percent are considered borderline core-periphery. However, a significant number of systems lack such a structure. This implies a considerable amount of managerial discretion exists when choosing the "best" architecture for a system. There are major differences in the number of core components across a range of systems of similar size and function, indicating that differences in design are not driven solely by system requirements. Instead, these differences appear to be driven, in part, by the characteristics of the organization in which development occurs. Open, distributed organizations tend to develop modular designs with smaller "Cores"; whereas closed, collocated organizations tend to develop tightly-coupled designs with larger Cores. The authors find that core components are often distributed throughout a system, rather than being concentrated in one place. Hence it is important not to assume that all key relationships in a system are located in a few subsystems. These issues are pertinent in software, given that legacy code is rarely re-written, but instead forms a platform upon which new systems are built. The authors find no discernible pattern of direct dependencies between components that can reliably predict the number and location of core components. The results highlight the critical importance of indirect dependencies, which generate multiple paths along which changes and problems can propagate. These findings highlight the difficulties facing a system architect. Closed for comment; 0 Comments.
- 13 May 2013
- Research & Ideas
How to Spot a Liar
Key linguistic cues can help reveal dishonesty during business negotiations, whether it's a flat-out lie or a deliberate omission of key information, according to research by Deepak Malhotra. Closed for comment; 0 Comments.
- 19 Mar 2013
- First Look
First Look: March 19
When daily deals misfire on merchants ... Lessons of war for negotiators ... The unexpected effect of electronic monitoring of criminals. Closed for comment; 0 Comments.
- 07 Mar 2013
- Working Paper Summaries
Prominent Job Advertisements, Group Learning, and Wage Dispersion
What role do peers play when job seekers assess prospects? This research presents a stylized model that generates wage inequality as a result of people's reliance on peers for information about the wages that are offered in the market and the length of time one can expect to spend unemployed. The key idea of the model is that people whose peers have low wages and short unemployment spells come to expect that all jobs have relatively low wages so they accept low-wage jobs relatively quickly even when they shouldn't. People with peers that have higher wages are, instead, more choosy and wait for better jobs. Key concepts include: Because workers search for jobs only a few times in their entire lifetimes, their ability to learn about the distribution of wage offers from their own experience is extremely limited. They may thus base their decisions mostly on the information provided by people they know. Peer groups can lead their members to accept relatively unattractive jobs by causing them to believe that better opportunities are more scarce than they actually are. More sophisticated workers wait for higher wages and learn from their group that it is rational to do so. Closed for comment; 0 Comments.
- 27 Feb 2013
- Research & Ideas
Sidetracked: Why Can’t We Stick to the Plan?
In her new book, Sidetracked, behavioral scientist and professor Francesca Gino explores the unexpected forces that often keep people from following through with their plans, both professional and personal. Closed for comment; 0 Comments.
- 21 Feb 2013
- Working Paper Summaries
Developing the Guts of a GUT (Grand Unified Theory): Elite Commitment and Inclusive Growth
Why do some countries successfully initiate episodes of rapid growth while others suffer extended stagnation? Furthermore, why are some countries able to sustain growth episodes over many decades of rapid or steady growth, while other growth episodes end in reversion to stagnation or collapse? This paper represents an initial step in a research agenda aiming to build a unified theory of growth that considers the complex dynamics and varied roles of elites. The analytical model suggested here is capable of generating both transitory and sustained episodes of accelerated growth. As Pritchett and Werker argue, progress on a unified theory of growth would explain, better than current long-run growth theories, the onset of growth episodes. It would also examine how the dynamics of growth interact with existing political and institutional configurations to produce feedback effects on policy and institutions such that some growth episodes end in bust or stagnation while others are continued. Key concepts include: A unified growth theory needs an encompassing model capable of explaining the dynamics of growth rates, both the persistence and the transitions. Conflict across types of elites (political versus economic), within elites (across ethnicity or region or ideology), and in the dynamics of elite formation (the rise of new domains with new elites) all play a role in development dynamics. Part of this research agenda is to recognize that the feedback loops from economic growth on the quality of governmental institutions and state capability can be either positive or negative. It is important to learn how changes can produce rapid growth accelerations even with more or less constant quality of institutions. The source of the initial growth can make that growth process either self-limiting or perpetuating. Closed for comment; 0 Comments.
- 11 Feb 2013
- Research & Ideas
Neuroeconomics: Eyes, Brain, Business
At first glance, a neuroscientist and a business school might seem an odd fit. But in fact economists have been paying increasing attention to how the brain works. Christine Looser discusses her research on how the brain detects aliveness and the possible implications for organizations and advertisers. Open for comment; 0 Comments.
- 17 Jan 2013
- Working Paper Summaries
Deregulation, Misallocation, and Size: Evidence from India
India carried out wide-ranging deregulation policies in 1991. Significant sectors of the economy were opened up for private participation through de-licensing and allowing entry to industries previously reserved exclusively for the state-owned sector. This paper analyzes the efficiency impact of the removal of a specific distortion: compulsory industrial licensing that regulated firm entry and imposed output capacity constraints on Indian firms prior to 1991. Did industrial delicensing in India, which relaxed entry barriers and capacity constraints on firm size, lead to a change in firm size distributions within industries? Key concepts include: Pro-market reforms in the 1990s rapidly deregulated significant sectors of the Indian economy previously kept off-limits to private participation. Deregulation of entry and the end of industrial licensing (also known as the "License Raj") in all but a small subset of industries had the capacity to transform the competitive environment in which firms operated. Deregulation in India may have created a winner-take-all environment where the largest firms drive out any competition. While deregulation leads to more small firms in the sample, the size distribution that the authors observe—namely, a large number of small firms and a small number of large firms—can be characterized as the "missing middle" in Indian manufacturing. Small firms may continue to face constraints in their attempts to grow. Distortions have decreased over time with higher gains for deregulated industries. Closed for comment; 0 Comments.
- 10 Jan 2013
- Working Paper Summaries
The Novelty Paradox & Bias for Normal Science: Evidence from Randomized Medical Grant Proposal Evaluations
A key task for executives and managers involved with innovation is to evaluate new ideas and proposals. In the sciences, one longstanding hypothesis contends that research ideas outside the mainstream are susceptible to being discounted, rejected, or ignored. These days, expert peer review in academic science is the approach most relied upon for enabling research agendas and providing research funds. Are novel research projects—those deviating from existing research paradigms—treated with a negative bias in expert evaluations? In this paper, the authors investigate how nascent scientific hypotheses are evaluated, specifically looking at the process by which medical research grant proposals are assessed by "gatekeepers": in this case, elite researchers from a leading medical school. Innovation requires novelty—but novelty, as this paper shows, is not appreciated and is in fact penalized. These findings help explain concerns about incrementalism in science and also point at the challenge that most organizations face when dealing with novel topics Key concepts include: Expert peer review of new research proposals in academic science is now a large organized practice in its own right. There are many concerns about the reliability of the peer review process. Novel research proposals are generally discounted—even when accounting for quality and feasibility of ideas. Evaluators also tend to be more critical of proposals that were closer to their area of expertise-and these two effects of novelty and intellectual distance appear to work largely independently of one another. How novel ideas and research hypotheses are treated may be consequential to the organization of innovation in general and peer evaluation in the sciences in particular. Closed for comment; 0 Comments.
- 03 Jan 2013
- Working Paper Summaries
The Value of Advice: Evidence from Mobile Phone-Based Agricultural Extension
This paper evaluates a new service that provides mobile-phone based agricultural consulting to poor farmers in India. For decades, the Government of India, like most governments in the developing world, has operated a system of agricultural extension, intended to spread information on new agricultural practices and technologies through a large work force of public extension agents. Evidence of the efficacy of these extension services, however, is limited. This paper describes a randomized field experiment examining the potential for an alternate route to improving agricultural management. Specifically, the authors evaluate Avaaj Otalo (AO), a mobile phone-based technology that allows farmers to call a hotline, ask questions, and receive responses from agricultural scientists and local extension workers. Findings show that AO had a range of important, positive effects on farmer behavior. This paper may be the first rigorous evaluation of mobile phone-based extension and, more generally, the first evaluation of a demand-driven extension service delivered by any means. Key concepts include: Farmers with access to the service were more likely to switch to a pesticide that is both more effective against pests, and dramatically less toxic to humans. Farmers receiving advice were also quicker to adopt high-value cash crops, planting more cumin and demonstrating more knowledge about it. The paper presents the first rigorous evidence that a low-cost agricultural extension service (costing as little as $.60 per farmer per month) can change behavior. There is a "digital divide" in India. There are systematic differences in adoption and use of the service, even among a relatively homogeneous group of farmers, and even for a technology that was specifically designed to be accessible to an illiterate population. Surveying by mobile phones can be conducted effectively and cheaply in a developing country context. There is considerable demand among farmers for high quality agricultural information. The information and communications technology (ICT) delivered timely, relevant, and actionable information and advice to farmers at dramatically lower cost than any traditional service. The ICT significantly changed farmers' sources of information for sowing and input-related decisions-in particular, farmers relied less on commissions-motivated agricultural input dealers for pesticide advice. Closed for comment; 0 Comments.
- 10 Dec 2012
- Research & Ideas
Why We Blab Our Intimate Secrets on Facebook
Leslie K. John and colleagues set out to discover the reason behind a common discrepancy: While many of us purport to be concerned about Internet privacy, we seem to have no worries about sharing our most intimate details on Facebook. Closed for comment; 0 Comments.
- 29 Oct 2012
- Research & Ideas
Are You Paying a Tip--or a Bribe?
Both are rewards for service, so why is one considered outside the boundaries of ethical behavior? Harvard Business School professor Magnus Thor Torfason on the thin line. Open for comment; 0 Comments.
- 24 Oct 2012
- Research & Ideas
Want People to Save More? Send a Text
What's the most effective way to encourage people to save their money? The answer lies in a combination of peer pressure and text messages, according to new research by Assistant Professor Dina D. Pomeranz. Open for comment; 0 Comments.
- 28 Sep 2012
- Working Paper Summaries
Self-Serving Altruism? When Unethical Actions That Benefit Others Do Not Trigger Guilt
Not a day goes by without the revelation of unethical behavior by a politician, movie star, professional athlete, or high-ranking executive. This paper asks: Is a person's willingness to cross ethical lines influenced by the presence of others who may benefit? Research by Francesca Gino, Shahar Ayal, and Dan Ariely. Findings show that cheating is motivated by potential benefits to others. The authors analyze the results of three experiments to suggest that the potential benefits which dishonesty may create for others not only help people justify their own bad behavior but also serve as a self-serving motivator for it. Focusing on the social utility of others, people more freely categorize their own actions in positive terms and avoid negative updating of their moral self-image. As a result, people feel less guilty about their dishonest behavior when others-in addition to themselves-can benefit from them. Among the implications: Team settings might be conducive to dishonest behavior among group members, and thus might not be ideal to foster learning. Key concepts include: People cheat more when other individuals can benefit from their cheating. Individuals also cheat more when the number of beneficiaries of wrongdoing is larger. Individuals often resolve ethical dilemmas through creative reassessments and self-serving rationalizations. They think they can act dishonestly enough to profit from their unethicality, but honestly enough to maintain a positive self-concept. Dishonesty should be studied not only at the individual level but also at the group level, where members can influence one another in their ethical as well as unethical behavior. Closed for comment; 0 Comments.
J. Richard Hackman (1940-2013)
This paper—a tribute to the lifework of the late scholar J. Richard Hackman, a professor of social and organizational psychology at Harvard—recalls his many contributions to our understanding of work design and team effectiveness. As the authors note, Hackman's research changed the face of work design in countless industries, from service and manufacturing jobs, to education, health care, and the performing arts. His theory (with Greg Oldham) of job characteristics, and his evidence about how one could redesign and enrich jobs, made it possible for workers not only to perform well but also to develop and make meaningful contributions through their work. The author or coauthor of 10 books on group effectiveness, Hackman revitalized teams research with his insights into the conditions under which effective collective work processes emerge. Key concepts include: Hackman began studying the impact of work design on motivation at a time when decades of "scientific management" had had the widespread impact of reducing jobs to a few minimum repeatable steps, requiring little knowledge or skill, and experienced as stultifying and dehumanizing by the people doing them. While many scholars focused on pay and rewards, Hackman turned his attention to the work itself, asking: What are the qualities of jobs that make them inherently meaningful, motivating through a sense of accomplishment? His model of groups has informed the design of countless task-performing teams, from cockpit crews and chamber orchestras, to teams leading organizations, performing surgeries, and gathering intelligence - all performing work that matters, in real time. Hackman's focus on context was a fundamental insight into both how to understand complex social systems like groups and how to facilitate their effectiveness. Closed for comment; 0 Comments.