Experimental economics summary paper Essay Example | Topics and Well Written Essays - 500 words - 15

Experimental economics summary paper - Essay Example information regarding quality and to ensure quality control is through the use of a third party that certifies and endorses products to comply with certain standards. A total of 21 buying sessions with 20 trading periods per session were conducted having 5 sellers and 6 buyers per period. The sellers could sell two super or two regular grade products per session. They had to pre-commit to quality in secret prior to any selling taking place. The fact that regular costs less to produce is a universal fact and all subjects were aware of it. They did not however know the actual difference. Offers were posted up on a whiteboard and at the end of each period, the grades of goods sold revealed. The reputation-only phase of the experiment kept the identities of sellers and hence their sales records revealed. The cheap-talk signaling phase gave sellers the option of either displaying a grade to buyers, or displaying no grade and just the pricing information and numbers up for sale. The certification part entailed ‘paying’ a fixed amount by the seller to certify their goods. The findings hence are in the categories of reputation, perception cr eated by â€Å"cheap-talk† and third-party certification and endorsement. It was discovered that reputation alone may not be enough to satisfy buyers of the quality they were paying for. The number of goods sold increased when compared to the baseline model where no information regarding quality was available. In the second part of the study, sellers were asked to label their goods with vague environmental quality claims. These also were discovered to be not enough in increasing efficiency or the number of high-quality units. This sort of cheap-talk signaling was found to be effective only when buyers were experienced. In the final part of the study dealing with certification, it was found that verifiable claims where a third party was introduced to monitor quality can help consumers find the information they need before buying.

Conscientiousness Research Paper Example | Topics and Well Written Essays - 750 words

Conscientiousness - Research Paper Example Leadership is the power to motivate people by words, actions and deeds using vision, belief and truthfulness (Northouse, 2009). Conscientious leadership, which becomes ethical leadership, means â€Å"ethically motivating others in ethical directions† consisting of both â€Å"procedural† and â€Å"substantive† (character-based) aspects (Chumir, 1992, para.1). The procedural dimension of conscientious leadership includes problem-solving and decision-making techniques within the circle of moral principles. For example, conscientious leadership demands that the leaders, before putting their decisions into action, inform and discuss them with the parties which are going to be affected by their decisions. This means that the concerned parties are being given due respect and importance. The substantive aspect of conscientious leadership includes knowledge, strong standards and courage to follow ethical directions despite strong opposition. Also, the values that a person inherits or learns later in his life play a very important role in constructing his inner self, and in developing conscientiousness. By understanding and polishing basic values, a leader develops a sense of moral obligation of enhancing the betterment of the company. A conscientious leader actually expresses transformational leadership (Brown & Travino, 2006), in which the leaders produce such an effect on their subordinates that they inflict a â€Å"transforming effect† on them, thus, producing â€Å"sweeping changes in organizations and societies† (Priyabhasini & Krishnan, 2005, p.1). A conscientious leader knows in what direction must the action go, and what the consequences of that action will be. He has a strong vision, and so, he is able to go in the depth of the problem to relate its solution with ethical values. It is the conscience of the inner self of the leader that leads him to do good decisions. The