An experimental study into the influence of works council advice on managerial decision-making

S. Sapulete, A. van Witteloostuijn, W. Kaufmann

Research output: Contribution to journalArticleScientificpeer-review

3 Citations (Scopus)

Abstract

This paper experimentally studies the effect of works council advice on managerial decision-making, aiming to gain more insights into the fundamental mechanisms that may underlie the impact of works council advice. We conducted laboratory experiments in which subjects played a two-player Prisoner's Dilemma price-setting game as either a manager or works council representative. Half of the managers received an advice to opt for a low or a high price; the other half received no advice. Managers receiving advice to choose a low price (play Nash) have a higher tendency to choose a low price. Subjects with an other-regarding orientation tend to choose a high price. Furthermore, we found an interaction effect of advice for other-regarding managers.
Original languageEnglish
Pages (from-to)357-371
JournalScandinavian Journal of Management
Volume30
Issue number3
DOIs
Publication statusPublished - Sep 2014

Keywords

  • employee participation
  • managerial decision-making
  • experimental economics
  • advice

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