The current research explores the role of disgust in enhancing compliance with fear appeals. Despite its frequent use in advertising and prevalence in consumer settings, little is known about the specific role that disgust plays in persuasion. This article explores the unique characteristics of disgust and examines its distinctive effect on persuasion. The results across a series of four studies demonstrate that adding disgust to a fear appeal appreciably enhances message persuasion and compliance beyond that of appeals that elicit only fear. Importantly, the results trace the persuasive effects of disgust to its strong and immediate avoidance reaction.

This paper develops new recursive, set based methods for studying repeated games with private monitoring. For any finite-state strategy profile, we find necessary and sufficient conditions for whether there exists a distribution over initial states such that the strategy, together with this distribution, form a correlated sequential equilibrium (CSE). Also, for any given correlation device for determining initial states (including degenerate cases where players' initial states are common knowledge), we provide necessary and sufficient conditions for the correlation device and strategy to be a CSE, or in the case of a degenerate correlation device, for the strategy to be a sequential equilibrium. We also consider several applications. In these, we show that the methods are computationally feasible, and how to construct and verify equilibria in a secret price-setting game.

We extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry. Individuals can become entrepreneurs by taking over established businesses or starting up new ventures from scratch. We argue that the new venture creation mode is associated with higher levels of schooling whereas managerial experience, new venture start-up capital requirements and industry level risk promote the takeover mode. A sample of data on entrepreneurs from The Netherlands provides broad support for these hypotheses, and also bears out a prediction that entrepreneurs whose parents run a family firm tend to invest the least in schooling. We go on to discuss the implications for researchers, entrepreneurs and public policy makers.

In small firms, high–performance work systems (HPWS) may not always yield benefits that outweigh their costs. Using a sample of 145 small enterprises (SEs) with 10–100 employees, we examine how small firms may realize mutually reinforcing effects of group culture on HPWS to increase employee retention and improve perceived labor productivity. Using a novel methodology, we find that employee retention does not mediate the effects of HPWS on perceived labor productivity, but that mediation becomes significant and increases with greater levels of group culture. This study provides insights into conditions in which HPWS can enhance SE perceived labor productivity.

The creation and intentional pursuit of entrepreneurial ideas lies at the core of the domain of entrepreneurship. Recent empirical work in a number of diverse fields such as cognitive psychology, social cognition, neuroscience, and neurophysiology all suggest that dual processes involving affect and cognition have a significant impact on judgment and decision making. Existing cognitive models ignore this significant role. In this article we develop a framework for understanding the role of affect on idea perception and the intention to develop the entrepreneurial idea. We present a set of testable propositions that link affect to entrepreneurial idea perception through its influence on attention, memory, and creativity. A second set of propositions links affect to the intention to pursue these ideas further. We explore the boundary conditions and moderators of the proposed relationships, and discuss the implications of this framework for existing cognitive and psychological perspectives on entrepreneurship.

This study proposes a new customer lifetime model: the gamma/Gompertz distribution (G/G). The advantage of this model relative to the well-known Pareto distribution is twofold: (i) its probability density function can exhibit a mode at zero or an interior mode, and (ii) it can be skewed to the right or to the left. We combine the G/G with a negative binomial distribution (NBD) and obtain the moments of the distribution of the number of transactions over (0, T] and (T, T+T * ]. Out of six data sets, the G/G/NBD model provides a notable improvement in the log-likelihood over the Pareto/NBD model in four data sets. It can indicate substantial differences in expected residual lifetimes compared to the Pareto/NBD and induce a retention rather than acquisition policy. On the average, the G/G/NBD exhibits slightly better forecasts of the mean number of transactions than the Pareto/NBD. This paper was accepted by Pradeep Chintagunta, marketing.

The evolution of new organizational forms has attracted growing theoretical and empirical attention, but little research has considered the microsocial processes that promote the emergence of groups of quasi-similar organizations that sometimes evolve into new organizational forms. Drawing from social psychological and sociological theories of identity formation, we explain processes of individual identification and collective identity development that precede and promote the formation of similar clusters, which audiences can then recognize and distinguish from established organizational populations and other emerging similarity clusters.

This editorial identifies a number of potential theory-related weaknesses in manuscripts, some more general in nature, others specific to international business (IB) research. It provides a brief critique and suggestions on how to overcome common problems in motivating research, framing contributions, reviewing literature, benefiting from the review process, and other issues of conceptual development. It also addresses questions particularly critical to IB research including multidisciplinarity, utilizing international context and enhancing theoretical impact. We conclude with specific guidelines on how to emphasize theory, thereby enhancing contribution and impact, in crafting and revising submissions to JIBS.

[We study the interaction between financing and investment decisions in a dynamic model, where the firm has multiple debt issues and equityholders choose the timing of investment. Jointly optimal capital and priority structures can virtually eliminate investment distortions because debt priority serves as a dynamically optimal contract. Examining the relative efficiency of priority rules observed in practice, we develop several predictions about how firms adjust their priority structure in response to changes in leverage, credit conditions, and firm fundamentals. Notably, financially unconstrained firms with few growth opportunities prefer senior debt, while financially constrained firms, with or without growth opportunities, prefer junior debt. Moreover, lower-rated firms are predicted to spread priority across debt classes. Finally, our analysis has a number of important implications for empirical capital structure research, including the relations between market leverage, book leverage, and credit spreads and Tobin's Q, the influence of firm fundamentals on the agency cost of debt, and the conservative debt policy puzzle.]