E. Bronchetti, Judd B. Kessler, Ellen B. Magenheim, Dmitry Taubinsky, Eric Zwick
A large and growing literature shows that attention-increasing interventions, such as reminders and planning prompts, can promote important behaviors. This paper develops a method to investigate whether people value attention-increasing tools rationally. We characterize how the demand for attention improvements must vary with the pecuniary incentive to be attentive and develop quantitative tests of rational inattention that we deploy in two experiments. The first is an experiment with an online education platform run in the field (n=1,373), in which we randomize incentives to complete course modules and incentives to make plans to complete the modules. The second is an online survey-completion experiment (n=944), in which we randomize incentives to complete a survey three weeks later and the price of reminders to complete the survey. In both experiments, as incentives to complete a task increase, demand for attention-improving technologies also increases. However, our tests suggest that the increase in demand for attention improvements is too small relative to the null of full rationality, indicating that people underuse attention-increasing tools. In our second experiment, we estimate that individuals undervalue the benefits of reminders by 59%.
{"title":"Is Attention Produced Rationally?","authors":"E. Bronchetti, Judd B. Kessler, Ellen B. Magenheim, Dmitry Taubinsky, Eric Zwick","doi":"10.3386/w27443","DOIUrl":"https://doi.org/10.3386/w27443","url":null,"abstract":"A large and growing literature shows that attention-increasing interventions, such as reminders and planning prompts, can promote important behaviors. This paper develops a method to investigate whether people value attention-increasing tools rationally. We characterize how the demand for attention improvements must vary with the pecuniary incentive to be attentive and develop quantitative tests of rational inattention that we deploy in two experiments. The first is an experiment with an online education platform run in the field (n=1,373), in which we randomize incentives to complete course modules and incentives to make plans to complete the modules. The second is an online survey-completion experiment (n=944), in which we randomize incentives to complete a survey three weeks later and the price of reminders to complete the survey. In both experiments, as incentives to complete a task increase, demand for attention-improving technologies also increases. However, our tests suggest that the increase in demand for attention improvements is too small relative to the null of full rationality, indicating that people underuse attention-increasing tools. In our second experiment, we estimate that individuals undervalue the benefits of reminders by 59%.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127517524","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper exploits tenure-dependence in the design of employment protection legislation (EPL) to identify its equilibrium impacts. In our setting, Brazil, EPL applies after a three-month probationary period, incentivizing firms to terminate jobs at exactly 3 months. We develop a structural model in which firms learn about match quality to map this effect on job termination to equilibrium macroeconomic outcomes. We find that EPL without a probationary period leads to a 2.4 percent increase in unemployment and 3.3 percent decrease in output. However, introducing a probationary period completely negates these effects by effectively increasing the value of an initial match.
{"title":"Employment Protection Legislation and the Macroeconomy: Evidence from Brazil","authors":"David Arnold, Joshua D. Bernstein","doi":"10.2139/ssrn.3588598","DOIUrl":"https://doi.org/10.2139/ssrn.3588598","url":null,"abstract":"This paper exploits tenure-dependence in the design of employment protection legislation (EPL) to identify its equilibrium impacts. In our setting, Brazil, EPL applies after a three-month probationary period, incentivizing firms to terminate jobs at exactly 3 months. We develop a structural model in which firms learn about match quality to map this effect on job termination to equilibrium macroeconomic outcomes. We find that EPL without a probationary period leads to a 2.4 percent increase in unemployment and 3.3 percent decrease in output. However, introducing a probationary period completely negates these effects by effectively increasing the value of an initial match.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130325702","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The recent coronavirus disease 2019 (COVID-19) generated some non-routine problems, characterized by a high degree of uncertainty which makes difficult the solving by the full rational decision making models. In the field of finance, such problems are those associated to the fiscal and monetary policies, that have to fight the recession or to investments in the presence of turbulences on the financial markets. Regarding the fiscal and monetary policies, governments and central banks could be tempted to use the same strategies that were successful in mitigating the effects of the Great Recession from 2007 – 2008, although the recent recession has different causes. In some developed countries there were launched stimulus packages, which allocated impressive financial resources to the economic branches affected by COVID-19. However, as in the case of Great Recession, the complexity of the circumstances made very hard an objective assignment of these resources. For the European Union, a particularity of the strategic solutions to the recent crisis is the fact that many of them are adopted by group decisions, where various interests of the participants have to be conciliated. In many countries, the fall of GDP, the rise of budget deficits and the present low interest rates could impose the choice between a high unemployment and an accelerating inflation. In such decisions, the objectives of governments, usually, very sensitive to the unemployment evolution, could compete with those of the central banks preoccupied by the prices stability. An accelerating inflation could shock the populations from many developed countries which, in the recent past, got used to a comfortable monetary stability. It could also undermine the central banks credibility, leading to distrust in the national currencies. In such situations, the inflation expectations would be no longer a tool for the monetary policies, but an obstacle for their objectives. They could also increase the uncertainty for some financial decisions, modifying the behaviors of various categories of investors, creditors of debtors. In the first quarter of 2020, the news about the COVID-19’s propagation and about the measures meant to help the economies provoked an unusual large number of negative and positive shocks on the developed and emerging capital markets. Such turbulences could be viewed as symptoms of overreactions which occur often in the times of crisis. It is possible, although not easy to prove, that the concern for their own health changed the behavior of some investors. The increased volatility could intimidate many risk-averse investors, but it could also attract some investors who use to take high risks. In some countries, the national currencies depreciated and the volatility of the exchange rates increased. As it happened before in other turbulent times, the gold became an attractive asset for investors. The potential boundaries of the rationality induced by COVID-19 in some decisions s
{"title":"Provocări pentru Finanţele Comportamentale în contextul COVID-19 (Some Challenges for the Behavioral Finance in the Context of COVID-19)","authors":"Ramona Dumitriu, R. Stefanescu","doi":"10.2139/ssrn.3577874","DOIUrl":"https://doi.org/10.2139/ssrn.3577874","url":null,"abstract":"The recent coronavirus disease 2019 (COVID-19) generated some non-routine problems, characterized by a high degree of uncertainty which makes difficult the solving by the full rational decision making models. In the field of finance, such problems are those associated to the fiscal and monetary policies, that have to fight the recession or to investments in the presence of turbulences on the financial markets. Regarding the fiscal and monetary policies, governments and central banks could be tempted to use the same strategies that were successful in mitigating the effects of the Great Recession from 2007 – 2008, although the recent recession has different causes. In some developed countries there were launched stimulus packages, which allocated impressive financial resources to the economic branches affected by COVID-19. However, as in the case of Great Recession, the complexity of the circumstances made very hard an objective assignment of these resources. For the European Union, a particularity of the strategic solutions to the recent crisis is the fact that many of them are adopted by group decisions, where various interests of the participants have to be conciliated. In many countries, the fall of GDP, the rise of budget deficits and the present low interest rates could impose the choice between a high unemployment and an accelerating inflation. In such decisions, the objectives of governments, usually, very sensitive to the unemployment evolution, could compete with those of the central banks preoccupied by the prices stability. An accelerating inflation could shock the populations from many developed countries which, in the recent past, got used to a comfortable monetary stability. It could also undermine the central banks credibility, leading to distrust in the national currencies. In such situations, the inflation expectations would be no longer a tool for the monetary policies, but an obstacle for their objectives. They could also increase the uncertainty for some financial decisions, modifying the behaviors of various categories of investors, creditors of debtors. In the first quarter of 2020, the news about the COVID-19’s propagation and about the measures meant to help the economies provoked an unusual large number of negative and positive shocks on the developed and emerging capital markets. Such turbulences could be viewed as symptoms of overreactions which occur often in the times of crisis. It is possible, although not easy to prove, that the concern for their own health changed the behavior of some investors. The increased volatility could intimidate many risk-averse investors, but it could also attract some investors who use to take high risks. In some countries, the national currencies depreciated and the volatility of the exchange rates increased. As it happened before in other turbulent times, the gold became an attractive asset for investors. The potential boundaries of the rationality induced by COVID-19 in some decisions s","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"86 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124953330","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
James J. Blann, John L. Campbell, Jonathan E. Shipman, Zac Wiebe
In 2001, SFAS 141 (ASC 805) required that identifiable assets and liabilities acquired in a business combination be initially recorded at fair value rather than pre-acquisition book value. The FASB argued that fair value measurement would provide more decision-useful information about future cash flows following business combinations. However, opponents argued that fair values are often difficult to estimate and may be too noisy to be useful. In this study, we examine whether fair value measurement for identifiable assets and liabilities provides incremental decision-useful information about post-acquisition cash flows and offer two main findings. First, we find that fair values have incremental predictive ability for post-deal cash flows (beyond pooled book values), but only in limited circumstances: (i) horizontal (i.e., same-industry) deals, (ii) deals that do not involve R&D-intensive targets, and (iii) deals in which managers have less incentive to over-allocate purchase price to goodwill. This suggests that fair value measurement in business combinations only enhances decision usefulness in transactions when fair values are more reliably estimable and/or less subject to manager incentives. Second, we find that analysts update their cash flow forecasts to reflect the information provided by fair value disclosures, but only in transactions where we find that fair values are decision useful. Overall, our results suggest that there are limits in the extent to which fair value measurement for acquired identifiable assets and liabilities provides decision-useful information about future cash flows, and that capital market participants appear to recognize those limits as reflected in their decision making.
{"title":"Evidence on the Decision Usefulness of Fair Values in Business Combinations","authors":"James J. Blann, John L. Campbell, Jonathan E. Shipman, Zac Wiebe","doi":"10.2139/ssrn.3568820","DOIUrl":"https://doi.org/10.2139/ssrn.3568820","url":null,"abstract":"In 2001, SFAS 141 (ASC 805) required that identifiable assets and liabilities acquired in a business combination be initially recorded at fair value rather than pre-acquisition book value. The FASB argued that fair value measurement would provide more decision-useful information about future cash flows following business combinations. However, opponents argued that fair values are often difficult to estimate and may be too noisy to be useful. In this study, we examine whether fair value measurement for identifiable assets and liabilities provides incremental decision-useful information about post-acquisition cash flows and offer two main findings. First, we find that fair values have incremental predictive ability for post-deal cash flows (beyond pooled book values), but only in limited circumstances: (i) horizontal (i.e., same-industry) deals, (ii) deals that do not involve R&D-intensive targets, and (iii) deals in which managers have less incentive to over-allocate purchase price to goodwill. This suggests that fair value measurement in business combinations only enhances decision usefulness in transactions when fair values are more reliably estimable and/or less subject to manager incentives. Second, we find that analysts update their cash flow forecasts to reflect the information provided by fair value disclosures, but only in transactions where we find that fair values are decision useful. Overall, our results suggest that there are limits in the extent to which fair value measurement for acquired identifiable assets and liabilities provides decision-useful information about future cash flows, and that capital market participants appear to recognize those limits as reflected in their decision making.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126436788","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper presents a random utility maximization model for individuals selecting discrete quantities from a set of n alternatives. Multiple alternatives with positive quantities may be selected. Diminishing marginal utility to quantity of each alternative is modeled via order statistics of independent Gumbel random variables. The model is parsimonious — requiring n + 1 parameters — and tractable — admitting closed-form expressions for choice probabilities. As such, the model is amenable to maximum likelihood estimation of structural parameters from observed choices.
Probability functions recover binary logit probabilities under binary choice and a maximum quantity of one unit, and probability is monotonic in the quantity of each alternative. The monotonic property likely restricts the application of the model to a narrow range of settings. The property is a manifestation of a simple recursive relationship among Gumbel order statistic probabilities. This relationship, to my knowledge, has not previously been identified in the literature and may lead to new models for capturing important complexities in a tractable manner.
{"title":"Multiple Discrete Choice with Order Statistic Marginal Utilities","authors":"S. Webster","doi":"10.2139/ssrn.3656581","DOIUrl":"https://doi.org/10.2139/ssrn.3656581","url":null,"abstract":"The paper presents a random utility maximization model for individuals selecting discrete quantities from a set of n alternatives. Multiple alternatives with positive quantities may be selected. Diminishing marginal utility to quantity of each alternative is modeled via order statistics of independent Gumbel random variables. The model is parsimonious — requiring n + 1 parameters — and tractable — admitting closed-form expressions for choice probabilities. As such, the model is amenable to maximum likelihood estimation of structural parameters from observed choices.<br><br>Probability functions recover binary logit probabilities under binary choice and a maximum quantity of one unit, and probability is monotonic in the quantity of each alternative. The monotonic property likely restricts the application of the model to a narrow range of settings. The property is a manifestation of a simple recursive relationship among Gumbel order statistic probabilities. This relationship, to my knowledge, has not previously been identified in the literature and may lead to new models for capturing important complexities in a tractable manner. <br>","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116549247","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Boochun Jung, Woo‐Jong Lee, David P. Weber, Daniel G. Yang
We examine the role of financial reporting quality in facilitating corporate employment. Labor creates operating leverage due to wage rigidity and lacks collateral value, both of which increase credit risk and the importance of information in debt markets. We use firms’ predetermined debt maturity schedules to identify when firms face credit constraints stemming from refinancing risk. We find that while refinancing risk is associated with reductions in net hiring, this effect is mitigated by higher quality financial reporting. This result is stronger when the informational sensitivity of debt is expected to be higher, including when labor-induced operating leverage is more significant (labor intensive or unionized firms) and when conflicts of interest among capital providers are more severe (firms with higher likelihoods of default or more heterogeneous debt structures). We further find that high quality financial reporting also mitigates the adverse effect of refinancing risk on employee turnover rates. Overall, our results highlight the importance of financial reporting quality in facilitating firm-level employment by mitigating frictions in both credit and labor markets.
{"title":"Financial Reporting Quality and Employment: The Case of Refinancing Risk","authors":"Boochun Jung, Woo‐Jong Lee, David P. Weber, Daniel G. Yang","doi":"10.2139/ssrn.3474827","DOIUrl":"https://doi.org/10.2139/ssrn.3474827","url":null,"abstract":"We examine the role of financial reporting quality in facilitating corporate employment. Labor creates operating leverage due to wage rigidity and lacks collateral value, both of which increase credit risk and the importance of information in debt markets. We use firms’ predetermined debt maturity schedules to identify when firms face credit constraints stemming from refinancing risk. We find that while refinancing risk is associated with reductions in net hiring, this effect is mitigated by higher quality financial reporting. This result is stronger when the informational sensitivity of debt is expected to be higher, including when labor-induced operating leverage is more significant (labor intensive or unionized firms) and when conflicts of interest among capital providers are more severe (firms with higher likelihoods of default or more heterogeneous debt structures). We further find that high quality financial reporting also mitigates the adverse effect of refinancing risk on employee turnover rates. Overall, our results highlight the importance of financial reporting quality in facilitating firm-level employment by mitigating frictions in both credit and labor markets.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124576735","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Most prior research examining exclusions from street earnings (i.e., the difference between actual GAAP and street earnings) does not distinguish between exclusions that were expected versus unexpected by analysts. We consider that exclusions reflect both amounts forecasted ex ante by analysts (expected exclusions) and amounts revealed after earnings were reported (unexpected exclusions). We investigate the properties of expected versus unexpected exclusions as well as analysts’ and investors’ reactions to unexpected exclusions. We find that unexpected exclusions are associated with both non-recurring and recurring earnings items and are positively associated with future earnings. The market’s response to unexpected exclusions is stronger when managers do not disclose non-GAAP earnings and analysts’ response to unexpected exclusions is stronger when earnings miss the consensus forecast. Our evidence suggests that distinguishing between expected and unexpected exclusions is useful for forecasting future earnings and valuation, and that managers’ reporting choices and earnings performance influence the market’s and analysts’ response to unexpected exclusions.
{"title":"On the Informativeness of Unexpected Exclusions from Street Earnings","authors":"B. Bratten, Stephannie A. Larocque, T. Yohn","doi":"10.2139/ssrn.3470390","DOIUrl":"https://doi.org/10.2139/ssrn.3470390","url":null,"abstract":"Most prior research examining exclusions from street earnings (i.e., the difference between actual GAAP and street earnings) does not distinguish between exclusions that were expected versus unexpected by analysts. We consider that exclusions reflect both amounts forecasted ex ante by analysts (expected exclusions) and amounts revealed after earnings were reported (unexpected exclusions). We investigate the properties of expected versus unexpected exclusions as well as analysts’ and investors’ reactions to unexpected exclusions. We find that unexpected exclusions are associated with both non-recurring and recurring earnings items and are positively associated with future earnings. The market’s response to unexpected exclusions is stronger when managers do not disclose non-GAAP earnings and analysts’ response to unexpected exclusions is stronger when earnings miss the consensus forecast. Our evidence suggests that distinguishing between expected and unexpected exclusions is useful for forecasting future earnings and valuation, and that managers’ reporting choices and earnings performance influence the market’s and analysts’ response to unexpected exclusions.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126756142","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We derive a new cost of information in rational inattention problems, the neighborhood-based cost functions, starting from the observation that many settings involve exogenous states with a topological structure. These cost functions are uniformly posterior separable and capture notions of perceptual distance. This second property ensures that neighborhood-based costs, unlike mutual information, make accurate predictions about behavior in perceptual experiments. We compare the implications of our neighborhood-based cost functions with those of the mutual information in a series of applications: perceptual judgments, the general environment of binary choice, regime-change games, and linear-quadratic-Gaussian settings. (JEL C70, D11, D82, D83, D91)
{"title":"Neighborhood-Based Information Costs","authors":"Benjamin Hébert, M. Woodford","doi":"10.3386/w26743","DOIUrl":"https://doi.org/10.3386/w26743","url":null,"abstract":"We derive a new cost of information in rational inattention problems, the neighborhood-based cost functions, starting from the observation that many settings involve exogenous states with a topological structure. These cost functions are uniformly posterior separable and capture notions of perceptual distance. This second property ensures that neighborhood-based costs, unlike mutual information, make accurate predictions about behavior in perceptual experiments. We compare the implications of our neighborhood-based cost functions with those of the mutual information in a series of applications: perceptual judgments, the general environment of binary choice, regime-change games, and linear-quadratic-Gaussian settings. (JEL C70, D11, D82, D83, D91)","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"49 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116608069","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The general objective of this study is to examine the evolution of the concept of brand literacy and measure the independent variables by collecting empirical data through purposively developed instrument. The primary data collected through the instrument will be validated using the appropriate statistical tools. The study aims at describing the brand literacy among consumers in reinforcing brand choices in reference to brand image, brand attributes, brand communication (verbal and non-verbal), and brand etymology. The analysis of data of the study is expected to reveal the role of brand literacy perceived by the consumers as a driver of decision making with the constructs of the study to create brand value.
{"title":"Defining Functional Concepts of Brands: Conceptualization and Literature Review","authors":"A. Rajagopal","doi":"10.2139/ssrn.3528603","DOIUrl":"https://doi.org/10.2139/ssrn.3528603","url":null,"abstract":"The general objective of this study is to examine the evolution of the concept of brand literacy and measure the independent variables by collecting empirical data through purposively developed instrument. The primary data collected through the instrument will be validated using the appropriate statistical tools. The study aims at describing the brand literacy among consumers in reinforcing brand choices in reference to brand image, brand attributes, brand communication (verbal and non-verbal), and brand etymology. The analysis of data of the study is expected to reveal the role of brand literacy perceived by the consumers as a driver of decision making with the constructs of the study to create brand value.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124002908","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper aimed to answer the question regarding the distribution of micro-donations. It focuses on investigating that how rounding-up the invoice amount of purchases could change the donation market. In order to do so an intensive literature review on ethics, Corporate Social Responsibility (CSR) and donations with a special focus on micro-donations was conducted. The findings from the literature review show that micro-donations can be used as a low threshold for customers to do good and as a starting point for bigger donations. Those findings were discussed in the light of how micro-donations can be perceived by customers and by corporations. Implementation strategies for micro-donations at different point-of-sales were analyzed within the work. The results of this literature review were compared with those of an empirical study that was also conducted in the course of the PhD. A quantitative survey taking place in both Germany and Romania including 16 closed-ended questions regarding people's attitude towards micro-donations was used to deepen the understanding of the topic. Analysis of the gathered data showed that, as was partially predicted by the findings from the literature review, the option to donate via micro-donations seem relevant especially for the young and the poor. Those usually very hard to reach demographics can with this measure be nudged into donating small amounts. In general, the paper was able to show that people do have a very positive attitude towards microdonations. Still, special education on the topic is needed in order to achieve optimal results.
{"title":"Contribution about Social Responsibility for Business Organizations: Implementing the Micro-donation","authors":"Henry Seeger","doi":"10.33152/jmphss-3.2.2","DOIUrl":"https://doi.org/10.33152/jmphss-3.2.2","url":null,"abstract":"This paper aimed to answer the question regarding the distribution of micro-donations. It focuses on investigating that how rounding-up the invoice amount of purchases could change the donation market. In order to do so an intensive literature review on ethics, Corporate Social Responsibility (CSR) and donations with a special focus on micro-donations was conducted. The findings from the literature review show that micro-donations can be used as a low threshold for customers to do good and as a starting point for bigger donations. Those findings were discussed in the light of how micro-donations can be perceived by customers and by corporations. Implementation strategies for micro-donations at different point-of-sales were analyzed within the work. The results of this literature review were compared with those of an empirical study that was also conducted in the course of the PhD. A quantitative survey taking place in both Germany and Romania including 16 closed-ended questions regarding people's attitude towards micro-donations was used to deepen the understanding of the topic. Analysis of the gathered data showed that, as was partially predicted by the findings from the literature review, the option to donate via micro-donations seem relevant especially for the young and the poor. Those usually very hard to reach demographics can with this measure be nudged into donating small amounts. In general, the paper was able to show that people do have a very positive attitude towards microdonations. Still, special education on the topic is needed in order to achieve optimal results.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127476450","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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