Mental accounting (Week 10)

Question 1

What are the barriers to the communication process?

Answer 1

• Overweighing shared, common information
• Undervaluing/suppressing unique info & dissenting opinions

Leading to premature opinion convergence –> undermines decision quality

Question 2

What is task conflict?

Answer 2

Disagreements among group members among task issues

Question 3

How is task conflict related to information sharing?

Answer 3

+: Consideration of key info relevant to the task

-: Elicits negative affect, e.g. frustration

Question 4

What is information sharing?

Answer 4

Sharing unique info relevant to the task

Question 5

What are the types of task conflict expressions?

Answer 5

• Mild

- Intense

Question 6

What are the characteristics of mild task conflict expression?

Answer 6

• Engage in debate about our diff. opinions/ideas
• Regularly express differing viewpts about the issues involved in our work

*INCREASE in positive emotions and info acquisition

Question 7

What are the characteristics of intense task conflict expression?

Answer 7

• Often criticise each other’s viewpts about our work
• Frequently argue about what our output should look like
• Frequently clash about our objectives/goals

*DECREASE in positive emotions and info acquisition

Question 8

How do conflict expressions relate to info sharing?

Answer 8

Debate expressions > Increase perceived receptivity
Disagreement expressions > Decrease perceived receptivity

Perceived receptivity: +vely related to info sharing

Question 9

How does framing influence conflict in negotiation?

Answer 9

Negotiation opponents who describe their situations as LOSSES rather than gains INCREASE indiv’s perceptions that the opponents are COOPERATIVE

Question 10

How does framing influence a situation involving conflicting interests?

Answer 10

Framing situation as an opportunity for ASKING QUESTIONS rather than for negotiation

INCREASES females’ initiation of conflict resolution

Question 11

How does framing influence a social dilemma game?

Answer 11

Labelling as COMMUNITY GAME rather than wall street game

DECREASES competitiveness

Question 12

What is the normative perspective of mental accounting?

Answer 12

Normative perspective:
- Expected Utility Theory: An emphasis on actual outcomes

• **Money is “fungible” (exchangeable; labels/accounts are irrelevant)
• **Ppl tend to maximise utility based on the goods they consume

Question 13

What is the descriptive perspective of mental accounting?

Answer 13

Descriptive perspective:
- Prospect Theory: Framing & mental accounting

• **Labels/accounts influence how ppl feel about transactions & how ppl spend money (non-fungibility)

Question 14

What are the two key aspects of mental accounts?

Answer 14

1. Non-fungibility

2. Proportionality

Question 15

What is the descriptive perspective of fairness & entitlements?

Answer 15

Descriptive perspective:
- Prospect Theory: Framing & mental accounting

• **Ppl want to feel like they are getting a fair deal

Question 16

How do people perceive fairness in different situations?

Answer 16

1) Clear vs. No clear reference point
- Perceive greater unfairness vs, more acceptable

2) Framed as loss vs. foregone gain
- Perceive greater unfairness vs. more acceptable

Question 17

How can you raise prices?

Answer 17

1. Obscure reference price

2. Frame price increase as a FOREGONE GAIN

Question 18

What are the habits of creative individuals?

Answer 18

1. Moderately procrastinate to deal with the issue

2. Generate a lot of ideas, most of which are not original

Question 19

How to recognise originals?

Answer 19

1. Are late to the party
   - Procrastination gives you time to generate ideas
   - First movers vs improvers
2. Originals feel doubt & fear

Question 20

What is the research goal of class exercise #2?

Answer 20

To examine predictors (intense & mild task conflict expressions) of indiv’s creative behaviour during a dyad interaction

Question 21

What are the findings from class exercise #2?

Answer 21

INTENSE task conflict expressions were NOT SIG. associated with indiv’s creative behaviour

MILD task conflict expressions +VELY ASSOC. with indiv’s creative behaviour

Question 22

What are the implications from class exercise #2?

Answer 22

To ELICIT another party’s creative behviour, indivs can rely on MILD task conflict expressions rather than intense conflict expressions