TY - JOUR
T1 - An experimental study into the influence of works council advice on managerial decision-making
AU - Sapulete, Saraï
AU - Van Witteloostuijn, Arjen
AU - Kaufmann, Wesley
PY - 2014/1/1
Y1 - 2014/1/1
N2 - This paper experimentally studies the effect of works council advice on managerial decision-making, aiming to gain more insights into the fundamental mechanisms that may underlie the impact of works council advice. We conducted laboratory experiments in which subjects played a two-player Prisoner's Dilemma price-setting game as either a manager or works council representative. Half of the managers received an advice to opt for a low or a high price; the other half received no advice. Managers receiving advice to choose a low price (play Nash) have a higher tendency to choose a low price. Subjects with an other-regarding orientation tend to choose a high price. Furthermore, we found an interaction effect of advice for other-regarding managers.
AB - This paper experimentally studies the effect of works council advice on managerial decision-making, aiming to gain more insights into the fundamental mechanisms that may underlie the impact of works council advice. We conducted laboratory experiments in which subjects played a two-player Prisoner's Dilemma price-setting game as either a manager or works council representative. Half of the managers received an advice to opt for a low or a high price; the other half received no advice. Managers receiving advice to choose a low price (play Nash) have a higher tendency to choose a low price. Subjects with an other-regarding orientation tend to choose a high price. Furthermore, we found an interaction effect of advice for other-regarding managers.
KW - Advice
KW - Employee participation
KW - Experimental economics
KW - Managerial decision-making
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U2 - 10.1016/j.scaman.2014.03.001
DO - 10.1016/j.scaman.2014.03.001
M3 - Article
AN - SCOPUS:84905757703
VL - 30
SP - 358
EP - 371
JO - Scandinavian Journal of Management
JF - Scandinavian Journal of Management
SN - 0956-5221
IS - 3
ER -