The purpose of this study is to explore differences in the decision making styles between family and nonfamily firms, while assessing how family participation relates to the use of decision making styles in family firms. The empirical evidence is provided by a sample of 155 firms, located in the...

We describe the DRIFT model, a heuristic description of framing effects in intertemporal choice, and four experiments testing its implications. In the experiments we vary how outcomes are framed – either as total interest earned, as the rate of interest or, as is traditionally done in studies...

Purpose: The purpose of this paper is to explore differences in the decision-making styles between family and nonfamily firms, while assessing how family participation relates to the use of decision-making styles within family firms. Design/methodology/approach: The empirical evidence is...

Two comparative models of intertemporal choice have recently been proposed as an alternative to the hyperbolic discounting model. One, the interval discounting model, retains the notion that intertemporal choice is governed by discounting, but proposes that discounting involves direct...

Markowitz hypothesized a fourfold pattern of risk preferences, with risk aversion for large gains and small losses, but risk seeking for small gains and large losses. We test his hypothesis, and obtain two major results. One is the dispersion effect: A majority exhibits risk seeking and risk...

The delay-speedup asymmetry is that a positive outcome is discounted more, and a negative outcome is discounted less, when it is delayed than when it is “sped up” over the same interval. To account for this asymmetry, Loewenstein and Prelec's (1992) hyperbolic discounting model and Scholten...

In this study, we examine how the effects of mergers and acquisitions on organizational performance depend on human resource management (HRM) centrality. HRM centrality is the status of HRM in the organization. In an analysis of the data from the 2005 Cranet survey, overall results showed that...

It is commonly assumed that people make intertemporal choices by ‘discounting' the value of delayed outcomes, assigning discounted values independently to all options, and comparing the discounted values. We identify a class of anomalies to such alternative-based discounting, which...