An experimental study into the influence of works council advice on managerial decision-making
Sapulete,S. van Witteloostuijn,A. Kaufmann,W.
Sapulete,S.
van Witteloostuijn,A.
Kaufmann,W.
Abstract
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.
Description
Date
2014-09
Journal Title
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Volume Title
Publisher
Research Projects
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Journal Issue
Keywords
employee participation, managerial decision-making, experimental economics, advice, SDG 16 - Peace, Justice and Strong Institutions
Citation
Sapulete, S, van Witteloostuijn, A & Kaufmann, W 2014, 'An experimental study into the influence of works council advice on managerial decision-making', Scandinavian Journal of Management, vol. 30, no. 3, pp. 357-371. https://doi.org/10.1016/j.scaman.2014.03.001