Search results for "Prospect theory"
showing 6 items of 16 documents
Executives' Commitment to Information Security
2020
Two aspects of decision-making on information security spending, executives' varying preferences for how proposals should be presented and the framing of the proposals, are developed. The proposed model of executives' commitment to information security is an interaction model (in addition to the cost of a security solution, and the risk and the potential loss of a security threat) consisting of the interaction between an executive's preferred subordinate influence approach (PSIA), rational or inspirational, and the framing, positive or negative, of a security proposal. The interaction of these two constructs affects the executive's commitment to an information security proposal. The model i…
The impact of service bundles on the mechanism through which functional value and price value affect WOM intent
2017
Purpose The purpose of this paper is to contribute toward the current limited understanding of service bundles by investigating how purchasers of combined product-service bundles (bundle customers) differ from those purchasing a product and associated service separately (non-bundle customers). Design/methodology/approach The hypothesized effects were tested on a representative sample of mobile phone subscribers in Finland, through a multi-group moderated analysis using variance-based structural equation modeling. Findings While functional value had a stronger effect on attitude for bundle customers, price value is a stronger determinant of attitude for non-bundle customers. There was no di…
Voice and Culture: A Prospect Theory Approach
2014
The present study examines the congruence of individuals' minimum preferred amounts of voice with the prospect theory value function across nine countries. Accounting for previously ignored minimum preferred amounts of voice and actual voice amounts integral to testing the steepness of gain and loss functions explicated in prospect theory, we use curve fitting to show that ratings of procedural justice fit prospect theory's value function specifically. Further, we investigate the form of this function across nine countries that range in power distance. Results suggest that the form of the value function is congruent with prospect theory, showing an S-shaped curve that is steeper in the loss…
Why farmers consider pesticides the ultimate in crop protection: economic and behavioral insights
2018
International audience; The observed dependence of current crop production on chemical crop protection is largely due to economic and technological factors. High yield and specialized cropping systems require high crop protection levels and pesticides allow achieving such protection levels at reasonable (private) costs. The main aim of this article is to show that behavioral factors may reinforce the effects of these economic and technological factors on farmers considering pesticides the ultimate in crop protection. Choice mechanisms described by K?szegi and Rabin (2007) imply that individual attitudes toward a given risk are endogenous in the sense that they depend on the best available m…
Executives’ Commitment to Information Security : Interaction between the Preferred Subordinate Influence Approach (PSIA) and Proposal Characteristics
2020
Two aspects of decision-making on information security spending, executives' varying preferences for how proposals should be presented and the framing of the proposals, are developed. The proposed model of executives' commitment to information security is an interaction model (in addition to the cost of a security solution, and the risk and the potential loss of a security threat) consisting of the interaction between an executive's preferred subordinate influence approach (PSIA), rational or inspirational, and the framing, positive or negative, of a security proposal. The interaction of these two constructs affects the executive's commitment to an information security proposal. The model i…
Framing Effects on Online Security Behavior
2020
We conducted an incentivized lab experiment examining the effect of gain vs. loss-framed warning messages on online security behavior. We measured the probability of suffering a cyberattack during the experiment as the result of five specific security behaviors: choosing a safe connection, providing minimum information during the sign-up process, choosing a strong password, choosing a trusted vendor, and logging-out. A loss-framed message led to more secure behavior during the experiment. The experiment also measured the effect of trusting beliefs and cybersecurity knowledge. Trusting beliefs had a negative effect on security behavior, while cybersecurity knowledge had a positive effect.