<p>This dissertation focuses on managerial decision making, and specifically explores conditions wherein managers may increase their propensity to escalate commitment towards a failing project. Escalation researchers (e.g. Schmidt and Calantone, 2002) have listed four classes of factors that may impact a manager's propensity to escalate commitment towards a failing project, and have called for research into how exactly these factors impact escalation. In this dissertation, we explore two such factors. The first factor relates to the characteristics of the decision process used by firms to evaluate the project. Here, for example, researchers have looked at whether the manager was also involved in making decisions about the project in a prior period, and Boulding, Morgan and Staelin (1997) have shown that such manager's positive beliefs about the project (formed in a prior period) make a manager more likely to escalate commitment. The second factor relates to project characteristics. Here, for example, researchers have looked at whether or not the project relates to a product that is perceived as new, and Schmidt and Calantone (2002) have shown that managers are more likely to escalate commitment towards a failing project relating to a new product. </p><p>The first dissertation essay uses three experiments to examine how a hitherto unexplored characteristic of the decision process might lead to increasing escalation of commitment. Specifically, building off research into the illusion of control, we examine whether the opportunity to use managerial skill during the decision process makes a manager more willing to escalate commitment towards a failing project. We find that whenever managers act on cues that cause them to think they can use their managerial skill to control some outside factor (even though in reality they cannot), managers overestimate their ability to "control the odds" related to this outside factor. Such beliefs feed forward and lead managers to make suboptimal decisions about the overall project.</p><p>The second dissertation essay looks at how project characteristics might make a manager more (or less) likely to escalate commitment towards a failing project. We explore this issue in the hitherto unexplored real options setting. Real options have emerged as an important part of marketing strategy, and have been used to structure new product alliances, value customers etc. We run a controlled experiment and we examine whether differences in option-structure (which is a project characteristic) impact the propensity to make suboptimal option-exercise decisions. We find that managers are more likely to make suboptimal option-exercise decisions in the case of put options (vis. call options), and - as predicted by the endowment effect literature - this increased propensity to make a suboptimal decision is mediated by/ explained by the psychological ownership construct.</p> / Dissertation

The endowment and the framing effect are widely examined cognitive biases. The experimental economics literature, using choice data gathered through an elicitation device, commonly finds evidence of these biases. Recent work by Cason & Plott (2014) shows that the interpretation of choice data as consistent with biases related non-standard preference theory could also be consistent with confusion or misconception of the game type used to elucidate preferences. I use the Cason and Plott card auction framework to analyze offers of buyers and sellers in an experimental setting with subjects from the University of New Orleans simulating 97 sellers and 90 buyers. The two games have symmetric payoffs in order to examine cognitive biases given subjects’ misconception of the game form. Subjects of both games display misconception of game form that explains both endowment and framing effects by rational confused choice; however, buyers display a much greater dispersion of offers than sellers. I estimate card implied valuation of sellers and buyers given game form misconception and find no statistical endowment effect, but I do find valuation is more uncertain in the buyer’s game. The theory of Rational Inattention predicts this lack of offer symmetry is due to the additional cognitive steps necessary in calculating buyer offers.

Esta tesis utiliza un enfoque experimental para comprender las interacciones dentro de redes y percibir las decisiones causando inversión de preferencia (IP). El Capítulo 1 experimentalmente introduce comunicaciones no vinculantes a un modelo de producción de un bien costoso, que es no excluible entre personas vinculadas en una red. Los resultados muestran que la comunicación de dirección única no mejora coordinación tanto como la comunicación entre conjuntos máximos independientes. El Capítulo 2 analiza experimentalmente un modelo de conflictos bilaterales integrado en redes, donde los oponentes invierten para ganar recursos. Concluye sobre exceso de inversiones comparado a las predicciones de equilibrio. Por último, el Capítulo 3 mira si el efecto dotación inicial resultado de statu quo conduce IP. Esto es analizado por la interrogación de la buena voluntad de cambiar una lotería dotada para otra o pago seguro. En contrario de las predicciones, resultados demuestra que dotaciones son renunciadas con frecuencia. / This thesis uses an experimental approach in understanding group decisions and interactions in networks and perceiving individual decisions causing preference reversal. Chapter 1 experimentally introduces different communication schemes to a production model of a costly good that is non-excludable among individuals linked within a network. Results show that one-way communication is not as efficient as in earlier literature; yet communication among maximal independent sets enhances coordination. Chapter 2 experimentally analyzes a model of multiple bilateral conflicts embedded in networks where opponents invest in conflict technology to win resources. It concludes on tendency to invest in excess of equilibrium predictions. Finally, Chapter 3 looks at whether preference reversal is driven by an endowment effect explanation originating from status quo bias. This is analyzed through questioning individuals' willingness to exchange their endowed lottery for another lottery or sure money. Contrary to the predictions, results show that individuals most often disclaim their endowments.

Efterfrågan och konsumtionen av jordens naturresurser ökar ständigt (Lieder &amp; Rashid 2016). Längs med ett konsumtionsmönster som präglas av en mentalitet där produkter används ett fåtal gånger under en begränsad tidsperiod kommer också konsekvenser (Belk 2014a). Ett gehör på detta har lett till att nya affärsmodeller har börjat uppmärksammas. En affärsmodell av cirkulär karaktär är delningskonsumtion som bland annat inkluderar korttidshyra (Armstrong &amp; Park 2019a). Genom att dela resurser under en kort period kan konsumenter uppleva ekonomiska-, utilitariska- och miljömässiga fördelar utan att äga produkten (Barhdi &amp; Eckhardt 2012; Griffiths &amp; Hwang 2017; Martin 2016). Men är ägandeskap en vän eller fiende gällande mer hållbara konsumtionsmönster? Syftet med denna studie är att observera hur ägandeskap påverkar adopteringen av korttidshyra och vidare observera om olika produktkategorier påverkas på olika sätt. En kvantitativ enkätundersökning genomfördes och resultatet tyder på att ägandeskap har en tendens att påverka adopteringen av korttidshyra sett till de observerade produktkategorierna. Dessutom finns det en indikation på att möbler tillsammans med kläder inte nödvändigtvis är särskilt lämpliga för korttidshyra medan bostäder samt, till viss del, elektronik kan anses vara mera lämpliga. / The demand and consumption of the earth's natural resources is constantly increasing (Lieder &amp; Rashid 2016). In combination with a consumption pattern that is characterized by a “take-make-waste” mentality we face anticipated consequences (Belk 2014a). As a response, a new set of business models has begun to get attention. One of these more circular models is collaborative consumption which includes short-term renting (Armstrong &amp; Park 2019a). By sharing resources during a short period, the consumers are able to experience monetary-, utilitarian- and environmental benefits without owning the product (Barhdi &amp; Eckhardt 2012; Griffiths &amp; Hwang 2017; Martin 2016). But is ownership a friend or foe in regards to more sustainable consumption patterns? The purpose of this study is to observe how ownership affects the adoption of short-term renting and further to observe if different product categories are affected differently. By conducting a quantitative online survey, the result shows that there is a tendency for ownership to affect the adoption of short-term renting in the observed categories. Furthermore, there is an indication that furniture along with clothing might not be suitable for short-term renting whilst accommodation, and for some part electronics, might be more suitable due to the degree that ownership affects the intention for adoption.

2005年4月號The Econonist 經濟學人週刊的封面刊登: 'Power at last - How the internet means the consumer really is king (and queen). ' 沒錯！消費者是國王的時代來臨了！消費者在網際網路上可以隨時隨地取得更多、更有價值的消費訊息，以極低的成本，應用網路中各種透明的消費資訊，任意的改變消費的抉擇，史無前例的表達出有別於過去被動接受產品的主動消費力量，消費利益也確實受到保護，因此以資訊為基礎的行銷策略就是消費者導向策略(Glazer,1997)，呼應了經濟學人週刊的聳動標題；本研究即証明了在獲得充分且有價值的消費資訊，對消費者在進行消費決策與行為時，是具有「主動的」改變力量，因此提供消費者更豐富的消費資訊，也必定能保護更多的消費者利益。 當新的資訊處理技術與傳播媒體出現，或是由某種新工藝的創造與發展，進而改變現存的政治、經濟與文化、風俗產生新的變遷將對消費行為，產生戲劇化影響(Innis, 1951; McLuhan, 1964)，原因在於消費者在面對嶄新而且陌生的消費環境，所採取維護自身消費利益的因應之道；本研究引用學者 Kahneman and . Tversky 提出的「預期理論」（Prospect Theory)，以及Barry Schwatz（2004）提出的「經驗效用」（Experienced Utility）、「期望效用」（）、「記憶效用」（Remembered Utility），因為以人類基於維護自身利益為出發點，方能準確反映出消費者的行為，洞察消費變化的先機；特別是在網際網路平台上對此議題的研究，本研究尚屬先例。 企業經營的成敗可由她與客戶關係的良莠顯現，衡量客戶關係最重要的指標就是：企業是否能由與消費者在消費流程互動中（關係），掌握所留下的足跡（資訊），加以解讀應用並促進消費者再消費，如此資訊的應用就是 Rashi Glazer所稱的企業「關鍵資產」，反映出不斷促進產品、服務交易的要素( Glazer,1997)：如果廠商忽視此變化，影響所及，失去的將不只是企業經營的「關鍵資產」，甚至還會被消費者「主動」的遺棄；因此，在企業經營的研究中，能將劇變如此的消費行為與決策，研究出可遵循與掌握的模式，相信對廠商競爭力的提升有莫大助益。 本研究的貢獻呈現在CORM-PET模式，也就是展現消費者是如何表達他「主動」消費力量的軌跡；試想，當企業發現消費者表示喜歡你的產品卻無消費行動，在過去對企業的影響並不明顯，因為同行也不知道何以如此（無資訊）！但是面對資訊處理能力百倍於過去的今天，能經由對資訊精準處理與應用，知道其中原因的廠商將嶄露頭角；CORM-PET模式就是我們提出能解釋消費行為何以如此的模式，以及能精確應用當前處理資訊的能力，解讀消費行為留下的資料轉為有力的應用資訊，幫助供需雙方在新興「資訊經濟時代」的市場交易中各取所需。 關鍵詞 消費者導向、預期理論、期望效用、記憶效用、經驗效用、稟賦效用、定錨效用、框架效用、消費風險、消費價值、頂端效用、可得性捷思法 / The front cover title of The Econonist magazine (April of 2005) read ' Power at last-How the internet means the consumer really is king (and queen). ' Consumers can obtain more valuable consumption information whenever and wherever in the internet, this shows unprecedentedly consumers’ active consumption strength which is different from their passively accepted the products in the past. Consumers can use the transparent price information in the network with the extremely low cost, and are free to choose any consumption. Consumption interests are also really protected, so the marketing tactics based on information are that consumers lead tactics (Glazer, 1997), which echoed the title of the The Econonist magazine. This research has proved that valuable and sufficient consumption information for consumer while making consumption decision provide active power of change. Therefore, offering more abundant consumption information to consumers can certainly protect more consumers’ interests. Enterprises’ relation with customers can reflect the success or failure of their management. The most important criteria of the relationship are whether both enterprises and consumers can keep enough track in the consumption procedure to facilitate the same consumer to consume again. This is what Glazer (1997) said ' key assets ' of enterprises, which reflect key elements to promote products, service trade constantly. If the owner ignores the fact that information changes consumption decision and behavior, he or she will lose not only ' key assets ' of enterprises, but also can be abandoned by consumers. So if academic research of enterprise management can figure out the model of drastic change of the consumer behavior and decision, which can be followed and grasped, manufacturer's competitiveness will be greatest improved. The change of consumption decision and behavior is because the consumer guided by information in the face of brand-new and strange consumption environment (network market) to adopt and safeguard self-consumption interests. Historian and mass communication scholar (Innis, 1951; McLuhan, 1964) point out such a change, as new materials treatment technology and media appear or new craft created and developed can change extant politics, economy, culture and custom. Other scholars maintain one after another that must extend the value concept of the customer in the past to apply to the business activity in the internet network (Keeney, 1999; Keeney, 1992; Rayport, Sviokla, 1994). All the scholars’ academic researches of mankind’s protect one's own interests over the years, the most excellent theories are 'Prospect Theory' by Kahneman ＆ Tversky. Schwatz’ (2004) 'Experienced Utility ', ' Expected Utility' , ' Remembered Utility '. We adopt the academic research of above-mentioned scholars, as the foundation of developing this research, because the academic research is based on mankind’s safeguarding one's own interests, which is different from others are on roles development. This research based on this kind of research to develop more concrete consumption behavior, especially the consumer behavior on the internet network platform, still belongs to the precedent. The contribution of the study appears in CORM-PET model, which represents how consumers express their initiatively consumption power. Just try to think that when the enterprises find that consumers like your products but not having the consuming action. There was not obvious in the past influence enterprises’ for the counterparts had no idea about the reasons. But information handling ability hundred times to the past today, the manufacturers who can process and apply with information accurately, and know the whys and wherefores will show up prominently. The CORM-PET model we proposed helps to explain how the consumer behavior like this pattern, dealing with information accurately, to understand the materials staying behind in consumer behavior transferring to powerful application information, to help both. Key words: Consumer orientation, Prospect theory, Expected utility, Remembered utility, Experienced utility, Endowment effect, Anchor effect, Framing effect, Consumer risk, Consumer value, Peak effect, Availability heuristics