Found 3 article(s) for author 'Voting'

Procedural Justice and the Risks of Consumer Voting

Procedural Justice and the Risks of Consumer Voting. Leslie John, Michael I. Norton, 2019, Paper, “Firms are increasingly giving consumers the vote. Eight studies demonstrate that when firms empower consumers to vote, consumers infer a series of implicit promises—even in the absence of explicit promises. We identify three implicit promises to which consumers react negatively when violated: representation (Experiments 1A–1C); consistency (Experiment 2), and non-suppression (Experiment 3). However, when firms honor these implicit promises, voting can mitigate the disappointment that arises from receiving an undesired outcome (Experiment 4). Finally, Experiment 5 identifies one instance when suppressing the vote outcome is condoned: when voters believe that the process of voting has resulted in an unacceptable outcome. More generally, we show that procedural justice plays a key mediating role in determining the relative success or failure of various empowerment initiatives—from soliciting feedback to voting. Taken together, we offer insight into how firms can realize the benefits of empowerment strategies while mitigating their risks.Link

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Legislating Stock Prices

Legislating Stock Prices. Lauren Cohen, Christopher Malloy, December 2013, Paper. “We demonstrate that legislation has a simple, yet previously undetected impact on stock prices. Exploiting the voting record of legislators whose constituents are the affected industries, we show that the votes of these “interested” legislators capture important information seemingly ignored by the market. A long-short portfolio based on these legislators’ views earns abnormal returns of over 90 basis points per month following the passage of legislation…”  Link

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Regulation versus Taxation

Regulation versus Taxation. Alberto Alesina, September 16, 2013, Paper. “We study which policy tool and at what level a majority chooses in order to reduce activities with negative externalities. We consider three instruments: a rule that sets an upper limit to the activity which produces the negative externality, a quota that forces a proportional reduction of the activity, and a proportional tax on it. For all instruments the majority chooses levels which are too restrictive when the activity is performed mainly by a small fraction…”  Link verified March 28, 2014

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