Sourcing Contract under Countervailing Incentives

2019 ◽  
Author(s):  
Qi Feng ◽  
Xianghua Gan ◽  
Suresh Sethi
1989 ◽  
Vol 49 (2) ◽  
pp. 294-313 ◽  
Author(s):  
Tracy R Lewis ◽  
David E.M Sappington

2009 ◽  
Vol 28 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Ananda R. Ganguly ◽  
Jacqueline S. Hammersley

SUMMARY: In this paper we report the results of two experiments that investigate auditing covariation-estimate revisions when there are countervailing incentives for effectiveness and efficiency. Covariation estimates assess the degree of association between a “Clue” that auditors might observe, and its potentially associated “Condition.” We find that when participants choose which information to obtain from a contingency table (i.e., Cell Choice), they obtain too few cells of information in predictable patterns. Second, we find that when covariation estimation biases occur, they do so more due to this insufficient information collection rather than improper processing of collected information. Third, when participants collect information randomly and cannot choose particular cells (i.e., Sample-Size Choice), covariation estimation biases are significantly reduced. Finally, when participants are sensitized to the importance of all four cells of information, they collect more cells in subsequent Cell Choice, resulting in covariation estimate revisions that are more normative than those of non-sensitized participants. Overall, this evidence implies that when auditors estimate the association between an unfamiliar Clue-Condition pair, their estimates are more biased when they choose specific cells of information than when they choose sample size. Sensitization can reduce this bias and, therefore, could be important to auditor training and the design of decision aids.


2018 ◽  
Author(s):  
Greg Jensen ◽  
Yelda Alkan ◽  
Vincent P Ferrera ◽  
Herbert S Terrace

The observation that monkeys appear to make transitive inferences has been taken as evidence of their ability to form and manipulate mental representations. However, alternative explanations have been proposed arguing that transitive inference performance based on expected or experienced reward value. To test the contribution of reward value to monkeys’ behavior in TI paradigms, we performed two experiments in which we manipulated the amount of reward associated with each item in an ordered list. In these experiments, monkeys were presented with pairs of items drawn from the list, and delivered rewards if subjects selected the item with the earlier list rank. When reward magnitude was biased to favor later list items, correct responding was reduced. However, monkeys eventually learned to make correct rule-based choices despite countervailing incentives. The results demonstrate that monkeys’ performance in TI paradigms is not driven solely by expected reward, but that they are able to make appropriate inferences in the face of discordant reward associations.


1997 ◽  
Vol 28 (1) ◽  
pp. 1 ◽  
Author(s):  
Yossef Spiegel ◽  
Daniel F. Spulber

2019 ◽  
Author(s):  
Qi Feng ◽  
Xianghua Gan ◽  
Suresh Sethi

2004 ◽  
Vol 83 (2) ◽  
pp. 251-256 ◽  
Author(s):  
Khaı̈reddine Jebsi ◽  
Lionel Thomas

2018 ◽  
Author(s):  
Greg Jensen ◽  
Yelda Alkan ◽  
Vincent P Ferrera ◽  
Herbert S Terrace

The observation that monkeys appear to make transitive inferences has been taken as evidence of their ability to form and manipulate mental representations. However, alternative explanations have been proposed arguing that transitive inference performance based on expected or experienced reward value. To test the contribution of reward value to monkeys’ behavior in TI paradigms, we performed two experiments in which we manipulated the amount of reward associated with each item in an ordered list. In these experiments, monkeys were presented with pairs of items drawn from the list, and delivered rewards if subjects selected the item with the earlier list rank. When reward magnitude was biased to favor later list items, correct responding was reduced. However, monkeys eventually learned to make correct rule-based choices despite countervailing incentives. The results demonstrate that monkeys’ performance in TI paradigms is not driven solely by expected reward, but that they are able to make appropriate inferences in the face of discordant reward associations.


2018 ◽  
Author(s):  
Greg Jensen ◽  
Yelda Alkan ◽  
Vincent P Ferrera ◽  
Herbert S Terrace

The observation that monkeys appear to make transitive inferences has been taken as evidence of their ability to form and manipulate mental representations. However, alternative explanations have been proposed arguing that transitive inference performance based on expected or experienced reward value. To test the contribution of reward value to monkeys’ behavior in TI paradigms, we performed two experiments in which we manipulated the amount of reward associated with each item in an ordered list. In these experiments, monkeys were presented with pairs of items drawn from the list, and delivered rewards if subjects selected the item with the earlier list rank. When reward magnitude was biased to favor later list items, correct responding was reduced. However, monkeys eventually learned to make correct rule-based choices despite countervailing incentives. The results demonstrate that monkeys’ performance in TI paradigms is not driven solely by expected reward, but that they are able to make appropriate inferences in the face of discordant reward associations.


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