Doctor of Business Administration (D.B.A.), Franklin University, 2022, Business Administration

The purpose of this mixed methods study was to determine how entrepreneurs who start new businesses can mitigate business decision risk while exploring how their business experience plays a role in their decision-making process. Previous meta-analysis of Ultimatum Game bargaining has shown that student populations do not follow a Nash Equilibrium. Based on a review of literature, the author's study explored if entrepreneurs would make offers closer to the Nash Equilibrium, (risker) based on their business background. While entrepreneurs did not make statistically different offers than the student group, their unique background and experiences did play a significant role in how they approached the problem with several significant findings: 1) Entrepreneurs ($4.76, average offer) did not make different (p = .805) offers than those of the students ($4.86 average offer). 2) There was not a significant difference (p = 0.846) between the acceptance rates of the entrepreneurs (88%) and the students (91%). 3) There was a significant difference (p = <0.001) between how entrepreneurs (3.85 on a Likert scale) viewed their background's role in decision making, and that of the student group (2.90). 4) There was a significant (p=0.017) medium negative correlation (-0.348) between entrepreneurs' feelings of risk and the size of their offer amounts. The qualitative results found that the decision making of the entrepreneurs was influenced by key themes of: Responsible Risk Taking, A Sense of Fairness, Altruistic Outlook, Application of Business Experience, and A Nash Mindset.

Committee: Charles Fenner (Committee Chair); Gary Stroud (Committee Member); Steven Tincher (Committee Member) Subjects: Business Administration; Business Community; Business Education; Economic History; Economic Theory; Economics; Entrepreneurship; Labor Economics; Social Psychology; Social Research; Social Structure; Sociology; Systems Science

Master of Arts, The Ohio State University, 2019, Psychology

A meta-study is a collection of many very small studies, called micro-studies, based on one core design. Meta-studies address many disadvanta7ges of meta-analyses and provide a possible solution for the replication crisis in research. In addition to addressing the problems related to meta-analyses, meta-studies provide several unique advantages to conducting research, specifically by testing the limits of generalizability and by having higher statistical power than a traditional design of the same total sample size. As a demonstration of the methodology, we conducted two meta-studies of the risky-choice gain-loss framing effect. In addition to replicating many past findings involving the framing effect, we also found two novel results, one of which was particularly surprising. One novel result was the nonlinear moderation of the framing effect by extreme probabilities (e.g., 1% and 99%). Participants were less likely to exhibit the framing effect when presented with extreme probabilities than when presented with moderate probabilities. The surprising novel result was that the framing effect doubled in size when participants were presented with a slightly risky option instead of a certain option. This result is contradictory to both Prospect Theory and Fuzzy Trace Theory predictions.

Committee: Michael DeKay (Advisor); Paul De Boeck (Committee Member); Ellen Peters (Committee Member) Subjects: Psychology

Doctor of Philosophy, The Ohio State University, 2006, Family Resource Management

The main purpose of this dissertation is to explore household saving using a prospect theory approach through the use of the loss aversion model and behavioral portfolio theory. The research begins by investigating the effect of having expected per-period income above or below the reference level as well as the effect of uncertainty on the likelihood of saving based on the loss aversion model. The focus then moves to saving motives based on the ideas of behavioral portfolio theory. The direct measure of saving available in the dataset is saving over the previous year. Saving horizon is also investigated since the saving measure is a short-term measure and some regular savers may not have saved during the past year. The dataset used is the 2004 Survey of Consumer Finances. The sample excludes retired U.S. households for a final number of 3,694 households. Having expected per-period income above the reference level increases the likelihood of saving. Having expected per-period income below the reference level is significantly and negatively related to the likelihood of saving, and has a greater effect on the likelihood of saving than having expected per-period income above the reference. The group of uncertainty variables is significant in explaining the likelihood of saving. In contrast to the theories reviewed, most of the uncertainty variables are not found to increase the likelihood of saving. Saving motives and saving horizon are significant in explaining the likelihood of saving. Saving for a foreseeable expense significantly increases the likelihood of saving in both the models with and without interaction terms. Having a motive to save for the education of children or grandchildren significantly decreases the likelihood of saving in the model without interactions, while this variable is not significant when interactions are added. Inclusion of interactions of saving horizon variables with the saving motive variables is found to be significant in explaining the (open full item for complete abstract)

Committee: Catherine Montalto (Advisor) Subjects:

Doctor of Business Administration (D.B.A.), Franklin University, 2023, Business Administration

This research explores the impact of zero-commission stock trading on individual stock market participation across a spectrum of demographic and socioeconomic factors. The advent of online platforms offering commission-free trades has potentially democratized stock market access, which this study investigates against the backdrop of traditionally low individual engagement in stock investments. The research was a quantitative cross-sectional survey, collecting data from a diverse American demographic. A significant 41% response rate was achieved, resulting in the completion of 495 questionnaires. The analysis reveals that income is the dominant factor influencing stock market involvement, accounting for 21% of the variance in participation rates; higher earners are more likely to invest. The allure of zero-commission trading stands out as a strong predictor of SMP accounting for 15% variance in participation while widespread adoption of smartphones and trading apps accounting for (4%). Financial knowledge and awareness was equally a significant predictor, contributing to 6% variation in SMP. Additionally, gender and age accounted for 3% and 4% variance respectively. The research underscores critical areas for policy and educational interventions, such as increasing financial literacy to bridge the gender gap and extending market access to lower-income groups. By shedding light on these factors, the study provides a comprehensive understanding of the recent shifts in stock market participation dynamics, highlighting the transformative potential of zero-commission trading in an increasingly digital financial landscape.

Committee: Beverly Smith (Committee Chair); Tim Wiseman (Committee Member); Lewis Chongwony (Committee Member) Subjects: Accounting; Economic Theory; Economics; Education Finance; Educational Tests and Measurements; Finance; Management; Public Policy

PHD, Kent State University, 2022, College of Business and Entrepreneurship, Ambassador Crawford / Department of Accounting

This dissertation consists of two essays on the impact of negative prospects on firm cost structures. It focuses on cost behavior for two reasons. First, cost structures, also known as operating leverage, play an important role in the level and the risk of a firm's profitability, and second, a firm's cost structure is largely determined by its managers' decisions and mirrors a vast range of operating decisions. The prospect theory argues that people may exhibit different behaviors on the same issue depending on whether these people frame the results as gains or losses. Specifically, based on prospect theory, people are risk-averse in the gain frame, preferring a sure gain to a speculative gamble, but are risk-seeking in the loss frame, tending to choose a risky gamble rather than a sure loss. It is important to investigate whether negative prospects can cause firms' risk-taking behavior because such risk-taking behaviors are usually value-destroying and associated with inferior subsequence performance. Given the evidence provided by the prospect theory literature, I conjecture and prove a controversial argument that when firms and their executives face negative prospects, these firms will adopt a rigid cost structure. In this dissertation, I examine two examples of negative prospects. The first essay examines the association between earnings or demand downside risks and firms' cost behavior and argues that firms may adopt rigid cost structures when they face earnings or demand downside risks. Traditional wisdom believes that when firms face high risk, especially high downward risk, they should adopt a flexible cost structure. Konchitchki et al. (2016) estimate a firm's earnings downside risk by comparing the realized earnings with the expected ones. Following their method, this essay develops an estimate for demand downside risk and proves that it is associated with firms' subsequent demand as well as subsequent operating performance. According to the prospect the (open full item for complete abstract)

Committee: Shunlan Fang (Committee Co-Chair); Dandan Liu (Committee Member); Pervaiz Alam (Committee Co-Chair) Subjects: Accounting

Doctor of Philosophy in Engineering, University of Toledo, 2021, Engineering

The applications of Unmanned Aerial Vehicles (UAVs) range from military to filming. Soon pizza and post-delivery services will utilize UAVs. Being airborne, UAVs can be a target of physical or cyber-attacks. UAVs depend on continuous communication with the ground control station (GCS), a global positioning system (GPS), and other UAVs within the UAV Network (UAVNet). UAVs connected in ad-hoc manner are called Flying Ad hoc Networks (FANETs). They depend on protocols and communication models quite similar to preexisting ad hoc networks such as MANETs, VANETs, etc. Recent cyberattacks have revealed severe loopholes and vulnerabilities in drone networks. Hence, a detailed study demands to recreate the attacking scenarios and improvise on the vulnerabilities for developing strong security measures- this is achievable by simulating accurate attacks and then employing a security model. This work considers the simulation and implementation of the security model in three stages: In Stage-I, we identify a comprehensive UAV simulator's characteristics and simulate attacks; In Stage II, we utilize game theory and Quantal Response Equilibrium (QRE) for the prevention of DDoS attack; and in the Stage-III we implement Bounded rationality for the security of delivery systems. The majority of the available drone simulators focus on the designing, gaming, or military aspects. But from a cybersecurity standpoint, an effective simulator demands the inclusion of accurate mathematical modeling, correct representation of path and terrains, fly zones, easy to handle user interface, and, most importantly, the communicative elements of the Flying ad hoc network (FANETs). Learning about UAVs as networking devices is essential from a security perspective because hackers aim to attack a communicating network's vulnerable aspects. Therefore, in Stage I of our work, we studied several application-specific UAV simulators and then proposed an ideal drone simulator's characteristics. Later (open full item for complete abstract)

Committee: Ahmad Y. Javaid (Committee Chair); Vijay Devabhaktuni (Committee Co-Chair); Weiqing Sun (Committee Member); Devinder Kaur (Committee Member); Mohammed Y. Niamat (Committee Member) Subjects: Computer Engineering; Computer Science; Engineering; Information Science; Information Systems; Information Technology

MFIS, Kent State University, 2020, College of the Arts / School of Fashion

The fashion industry struggles to address the waste accompanying overconsumption. Packaging, an inherent component of purchases (particularly in online settings), poses a particular dilemma. Current endeavors to decrease the environmental harm of packaging may only be suited to particular companies and can be expensive and time consuming to develop. Furthermore, products or packaging marketed as environmentally friendly are often associated with a price premium. Without a perceived personal benefit, consumers often forgo their sustainable values, discouraging development of sustainable initiatives. Prospect Theory positions that individuals tend to take different action based on the gain or loss frame. Literature suggests that references interact with frames, producing different results. Therefore, this study uses a 2 (frame: gain/loss) x 2 (reference: personal/societal) x 2 (green consumer value: high/low) mixed method online experiment in which consumers were shown one of four message combinations and offered the choice of no poly bag and a polybag. Analysis revealed that while the message did not have a significant effect on packaging selection, 74.73% fewer polybags were used because the option was present. Multiple 3 way ANOVAs revealed that brand attitude and purchase intention were affected by frame; frame and reference interacted to affect attitude towards the packaging initiative and brand attitude; and that green consumer values acted as a moderator in certain cases. Overall, this study provides a starting strategy for packaging initiatives and outlines message architecture to better promote sustainable behavior and positive attitudes for customers with both low and high green consumer values.

Committee: Gargi Bhaduri Ph.D. (Advisor); Lawrence Marks Ph.D. (Committee Member); Noël Palomo-Lovinski M.F.A. (Committee Member) Subjects: Design; Environmental Management; Marketing; Packaging; Sustainability

Doctor of Philosophy, The Ohio State University, 2017, Consumer Sciences

In this dissertation, I focus on how households adjust their expenses in response to changes in income as well as the asymmetric responses in expenses behavior by distinguishing between income increases and decreases. To account for the prospect theory hypothesis, which emphasizes that utility of consumption depends not only on current consumption but also reference status in terms of how current consumption deviates from past consumption, I use a variable introduced in the 2010 Survey of Consumer Finances (SCF), current expenses relative to usual expenses, as a dependent variable. In the current study, a reference status is measured by subjective assessment of normal income and normal expenses level, rather than by an objective measurement such as lagged income and lagged consumption. I estimate asymmetric income effects on expenses across income quartiles based on a binary variable of income shocks and a continuous variable of income shocks, respectively. To do so, I employ pooled data from the 2010 and 2013 SCF and run Multinomial logit regression, which allows for estimates of the effects of changes in income on each category of a dependent variable, compared to the reference category for the dependent variable. The results with a binary variable of income shocks show that the negative income shock decreases expenses (statistically significant) across all income group, while the positive income shock has a statistically significant effect on increased expenses compared to usual expenses only in the lowest- and highest-income groups. Based on F-tests, I find the asymmetric effect of changes in income on changes in expenses. However, this asymmetry (i.e. the decrease in expenses in response to negative income shocks is greater than the increases in expenses in response to positive income shock) is not consistent with loss-aversion behavior. But it also does not make sense to interpret it as a of the result of liquidity constraints, especially for the highes (open full item for complete abstract)

Committee: Andrew Hanks (Advisor); Sherman Hanna (Committee Member); Robert Scharff (Committee Member) Subjects: Economics; Home Economics

Doctor of Business Administration, Cleveland State University, 2017, Monte Ahuja College of Business

Housing markets exhibit some puzzling behavior that cannot be completely explained by rational market dynamics. The neoclassical economic theory posits that rational sellers and rational buyers in the housing market will look at the current market price in order to determine a value of a property. Studies, however, show that physiological biases may affect the decision- making process of both sellers and buyers. I examine the behavior of sellers in the housing market in three different settings. In essay 1, I analyze the effects of the health of the housing market on mobility. In Essay 2, I study the effects of sellers' loss aversion on listing price and time on the market within the prospect theory framework. In Essay 3, I focus on identifying stress in the housing market by developing a stress index and commencing the design of an Early Warning System that incorporates signals from the market and behaviors from sellers to indicate increasing levels of pressure. I utilize a data set of private home sale transactions of corporate relocations for the period 2004-2014. The results of the first study from the stepwise logit models on series of economic variables and demographic factors show that relocating employees facing negative equity situations and equity less than 5% of home value have a greater chance of rejecting relocation while economic factors like affordability and credit availability have a positive effect on their ability to move. Essay 2 results indicate that a seller who faces a loss will set up an asking price 5.69 percent higher than they would otherwise. Additionally, sellers facing a loss will experience a reduction in the hazard rate of sale resulting in longer time on the market while income and family status have effect on loss aversion and time on market. In the last essay, I hypothesize that economic signals and home sellers' behaviors can explain the variability of the housing market stress index proxied by a transformed S″P500/Case Shi (open full item for complete abstract)

Committee: Alan Reichert Ph.D. (Committee Chair); Haigang Zhou Ph.D. (Committee Co-Chair); Dieter Gramlich Ph.D. (Committee Member); Walter Rom Ph.D. (Committee Member) Subjects: Finance

Master of Arts (M.A.), Xavier University, 2014, Psychology

Every decision we make has some degree of risk, and the way a situation is presented may impact the final decision. The purpose of this study was to examine the relationship between risk propensity and situational framing in a work setting. Risk propensity was measured using a General Risk Propensity scale developed by Hung, Tangpong, Li, and Li (2012). This was assessed in accord with participants' framing confidence (as measured by the probability of selecting the “sure” response). Based on previous research on prospect theory (Kahneman & Tversky, 1979), it was hypothesized that the way a situation was framed (positively vs. negatively) would alter the decision made. Participants included 176 MTurk workers who were randomly assigned to the positive or negative frame condition. Results showed a significant moderation of the relationship between the probability of selecting the “sure” response and scores on the GRP scale by frame condition, such that the negative frame showed a stronger decrease in selecting the sure response than the positive frame. The findings of this study support prospect theory.

Committee: Morell Mullins Ph.D. (Committee Chair); Dalia Diab Ph.D. (Committee Member); Mark Nagy Ph.D. (Committee Member) Subjects: Psychology

Doctor of Philosophy, The Ohio State University, 2014, Human Ecology: Family Resource Management

With increasing income uncertainty during the Great Recession, many households might have had difficulty in projecting future income changes. Ideally, a household should consider lifetime wealth and the distinction between transitory and permanent income changes in making saving decisions, but during the Great Recession it was probably very difficult for households to identify which income changes were transitory. Gain-loss utility based on prospect theory assumes that household inter-temporal decisions are determined not only by current or permanent income but also by their own expectations or assessment about income and income uncertainty in the first period. In this study, how households' perception of their past and future income compared to reference points in the first period and how households' perception of their income uncertainty change affect saving decisions in the second period and between the periods were examined with estimates of future income change. Saving decisions were tested based on relative gain and loss utility using loss aversion theory of consumption and a two period model. Possible asymmetric saving responses between positive and negative changes in reference dependent income and uncertainty were also analyzed. The 2007 and 2009 Survey of Consumer Finances (SCF) panel dataset was used. Both total and subsamples were analyzed based on the expected income change measure to identify possible asymmetry of saving in response to a set of reference dependent income and uncertainty variables, such as deviation from normal income, expected income change, and income uncertainty change, as well as the effect on saving measured in two ways, savings between 2007 and 2009 and whether or not saved in 2009. This study found a set of reference dependent income and uncertainty variables had significant effects on saving decisions of households and asymmetric saving responses between negative and positive changes in those variables. H (open full item for complete abstract)

Committee: Kathryn Stafford (Advisor); Sherman Hanna (Committee Member); Robert Scharff (Committee Member) Subjects: Home Economics

Doctor of Philosophy, The Ohio State University, 2013, EDU Policy and Leadership

Two-thirds of college students will borrow money to attend college or university. Among them is a group categorized as `independent' according to federal criteria, including age, income, familial status, veterans, and those for whom dependency is not possible, such as foster children. This qualitative study explores the meaning that independent undergraduate students ascribe to the debt they encumber while enrolled in college. What is their perception of their student debt? Do they believe their education is worth the debt? The researcher originally sought to ask twenty independent undergraduate students in their junior year or above about their experience of student debt while enrolled at a large regional public university in the Midwest. In addition to interviewing, twenty individuals who met the original criteria, an additional eight were interviewed who expanded the original definition of independence beyond the federal criteria and the need to focus on those close to graduation. Results suggest that student debt is considered a necessity by all of the participants as it relates to their college attendance and their lifestyle choices. College attendance was seen as a requirement to gain access to future employment. Student loans often were used to supplement or provide full support for external living expenses. Acceptance of this syllogism may explain expanded levels of debt tolerance, consistent with the application of prospect theory to the data. Their own needs and networks facilitated the participants' understanding of their student debt. Some of the participants viewed the impact of debt on their academic and social experience as negative, while the majority recognized student debt as a “necessary evil” and a personal “investment” in their own human capital. Student debt was viewed as distinctly different from other kinds of debt. While all of the participants recognized the value of their education, some level of distrust of the current structure of (open full item for complete abstract)

Committee: Ada Demb Ed.D. (Advisor); Scott Sweetland Ph.D. (Committee Member); Chris Zirkle Ph.D. (Committee Member) Subjects: Adult Education; Education; Education Finance; Education Policy; Educational Leadership; Higher Education; Higher Education Administration; Public Administration; Public Policy

PhD, University of Cincinnati, 2009, Business: Business Administration

This dissertation investigates substantive questions developed from Kahneman and Tversky's behavioral choice theory. Behavioral choice theory postulates systematic departures from economically rational behavior when consumers face choices described incompletely or probabilistically. Previous research relies nearly exclusively on monetary options, which are intrinsically unidimensional and exhibit monotone utility. These special properties are likely to influence the frequency of preference reversals and other so-called non-rational behaviors in human decision-making. Four contributions emerge from this research. First, I extend the idea of risky choices from monetary to non-monetary options and build a theoretical framework with a foundation in prospect theory and reason-based choice. Second, I test the effect of multidimensional vs. unidimensional non-monetary options on choice focusing on both within- and between-dimensional risk. Third, I examine loss aversion across segments and relate an aggregation fallacy to contradictory results in the literature. Fourth, I suggest an extension of Kahneman and Tversky's behavioral choice theory by incorporating options with missing information. I use three discrete choice experiments to generate decision schema by segments of individuals sharing similar utility functions. Latent class discrete-choice models isolate the direction and magnitude of value for each attribute (level) of a set of multi-attribute options. They do so in choice domains involving both monetary and non-monetary attributes and operate effectively at both the aggregate and segment levels. As such, they support the rigorous design of experiments that circumvent the need to rely on monetary gambles. Study 1 investigates the influence of monetary (vs. non-monetary) goals on multidimensional risky choice when full information on reference points is available to an individual. Findings support goal-driven behavior, but reveal only limited evidence to supp (open full item for complete abstract)

Committee: David J. Curry PhD (Committee Chair); Frank R. Kardes PhD (Committee Member); Jordan J. Louviere PhD (Committee Member); James J. Kellaris PhD (Committee Member) Subjects: Marketing

MA, University of Cincinnati, 2003, Arts and Sciences : Political Science

This thesis attempts to contribute to the debate of why states go to war and what calculations dominate a state's decision making process as it relates to war. This paper attempts to explain this by an examination of the relationship between the weapon environment of a prospective war and the decision calculus of states. To do this, this thesis draws on literature concerning deterrence and prospect theory as well as the broader international relations theoretical debate over state preferences. The thesis offers two heuristic case studies of the Cuban missile crisis and the Persian Gulf war to explore the potential conditional relationship that exists between the broad category of weapon types (conventional or nuclear) and state preferences (relative versus absolute gains calculations). Through these case studies this thesis suggests that the weapon system that defines the strategic environment is the main factor impacting whether a state will base its calculations to go to war in terms of relative or absolute calculations.

Committee: Dr. Richard Harknett (Advisor) Subjects: Political Science, General

Doctor of Philosophy, The Ohio State University, 2008, Nursing

Sleep disordered breathing is a family of disorders characterized by abnormalities in either the quality or quantity of respirations during sleep. Approximately 5% of the general population and 30% of those with cardiovascular disease have some type of sleep disorder, most commonly manifested as obstructive sleep apnea (OSA). Continuous positive airway pressure (CPAP) is the gold standard for treating OSA. By acting as a pneumatic splint, CPAP essentially mitigates many of the acute physiologic responses to OSA. Just 4 hours of CPAP therapy can provide benefit in sleepiness, snoring, blood pressure, and cognitive functioning with carry-over effects that continue for the following day. CPAP treatment is associated with suboptimal and variable rates of adherence. Importantly, these rates are established quickly, often within the first week of therapy, and are not easily altered after that initial exposure. To date, no reliable or modifiable variables or technological advancements have been shown to consistently improve CPAP use. This research examined the impact of positive or negative educational messages about CPAP on 30-day adherence to the therapy in 55 patients with a history of cardiovascular disease and who were CPAP naive. Following standard information about CPAP, participants were randomized to receive supplemental education about CPAP, from either positive (focusing on good outcomes associated with using CPAP) or negative (emphasizing the consequences of untreated OSA) framing formats. In post hoc analysis, using CPAP for 4 or more hours the first night strongly predicted 30-day adherence (p<.001). None of the selected baseline demographic, psychosocial, or disease severity variables were predictive of 30-day adherence to CPAP. A regression model, that included first night use, randomization assignment, and baseline dispositional optimism, explained 58% of the variance to CPAP at 30 days (p=.026). Greater 30-day adherence and higher self-efficacy scores at (open full item for complete abstract)

Committee: Elizabeth J Corwin J (Advisor); Karen Ahijevych L (Committee Member); Thomas Nygren (Committee Member) Subjects: Health Care

Doctor of Philosophy, The Ohio State University, 2006, Natural Resources

The realm of environmental policy and management requires that decision makers weigh a diverse set of objectives and evaluate alternatives that often seem equally important. In order to ensure that all of the decision relevant information is incorporated in a manner that produces well-informed judgments it is important to understand what motivates choice behavior in these contexts. The research presented in this dissertation tests the relevance of several key findings from behavioral decision theory for predicting and explaining choice behavior in common environmental policy and management decision contexts. Specifically, an experiment designed to test extensions of the evaluability hypothesis demonstrated that the affective characteristics of problem context may actually work to override gains in the evaluability of the risk attributes brought on by side-by-side comparisons. This behavioral tendency is referred to as “affect-based value neglect” or the tendency for individuals to place greater weight on their affective reactions to problem context at the expense of decision relevant risk information. Another experiment designed to test extensions of prospect theory into the way individuals attribute value to the gains and losses of others demonstrated that individuals have a difficult time differentiating between the impact of gains and losses in emotionally significant contexts (e.g., environmental protection, job security). The results also revealed a lack of trust in the ability of unknown others to appreciate the significant impact of a loss. Overall, the research presented in this dissertation points to the power of affective reactions and their tendency to influence or even dominate choice behavior. Decision making authorities need to pay careful attention to the factors that motivate choices in environmental policy and management decision processes. An over reliance on simplifying heuristics may bias the decision making process and lead to outcomes that do n (open full item for complete abstract)

Committee: Virginie Bouchard (Advisor) Subjects:

Doctor of Philosophy, The Ohio State University, 2006, Psychology

Five studies examined the hypothesis that employment disparities framed as disproportionate advantages in workplace outcomes are judged less discriminatory than disparities framed as disproportionate disadvantages. Disadvantage-based disparities are defined by disproportionate losses suffered by a non-favored employee group while the favored employee group receives an expected level of losses. Advantage-based disparities are defined by disproportionate gains received by a favored employee group while the non-favored employee group receives an expected level of gains. Even though both types of disparities can be objectively the same size, prospect theory would predict that disproportionate gains are subjectively experienced as less severe than disproportionate losses. Studies 1-3 are preliminary tests of this hypothesis, using female employees as the non-favored group (Studies 1 and 2), African American employees as the non-favored group (Study 3), and using two separate employment contexts (Study 2). Chapter 3 introduces a two-step cognitive model to explain the results. According to the model, more attention and deliberation are necessary to recognize advantage-based discrimination, and any moderator that increases observers' attention or sensitivity to advantage-based disparities will reduce or eliminate the framing effect found in Studies 1-3. Two such moderators, ingroup relevance and workplace outcome valence, are tested in Studies 4 and 5, respectively. Results indicate that while ingroup relevance does not moderate the framing effect, using negatively valenced outcomes (rather than positively valenced outcomes) significantly moderates the framing effect. Results are discussed in terms of their implications for the two-step model and applications to business and law.

Committee: Marilynn Brewer (Advisor) Subjects: Psychology, Social

Doctor of Philosophy, The Ohio State University, 2004, Business Administration

This dissertation studies how psychological and reputational considerations affect the behavior of individual investors and security analysts. The first essay examines investors' preference for framing their gains and losses using trading records of individual investors at a large discount brokerage firm. I find that investors tend to bundle sales of losers on the same day and separate sales of winners over different days. The result is consistent with the principles of mental accounting (Thaler (1985)), according to which individuals attain higher utility by integrating losses and segregating gains. Alternative explanations based on tax-loss selling strategies, margin calls, the number of winners and losers in a portfolio, the difference in the potential proceeds from selling winners and losers, and correlations among winners and losers in a portfolio do not fully account for the observed behavior. Logistic analyses show that investors are more likely to sell multiple stocks when they realize losses, after controlling for various factors including market and portfolio returns, overall sales activity during the day, and investor characteristics. The second essay provides a theoretical and empirical analysis of analysts' incentives to incorporate public information in their earnings forecasts. The model show that analysts may underreact to public news due to their reputational concerns, and that an analyst's incentive to underreact to public information 1) decreases with the size of unexpected news; 2) decreases with the uncertainty of earnings; 3) increases with the analyst's initial reputation; and 4) increases with how much the analyst values his/her current reputation relative to forecast accuracy. I test the implications of the model and find that analysts underreact to earnings news less when the size of unexpected earnings is large, when there is more uncertainty about the earnings, and when they have long track records. The model also implies that the strateg (open full item for complete abstract)

Committee: David Hirshleifer (Advisor) Subjects: Business Administration, General