The Effect of Social Preferences on Sales and Operations Planning

2021 ◽  
Author(s):  
Felix Papier ◽  
Ulrich W. Thonemann
Keyword(s):  
Financial Incentives ◽  
Social Preference ◽  
Social Preferences ◽  
Inequality Aversion ◽  
Monetary Incentives ◽  
Competitive Pressure ◽  
Operations Planning ◽  
Demand Planning ◽  
Planning Processes

Sales and operations planning processes are used to align production quantities and customer demand. Two key activities of these processes are demand planning and production planning, which are often assigned to individuals in different departments. In “The Effect of Social Preferences on Sales and Operations Planning,” Papier and Thonemann analyze the role of social preferences (altruism, inequality aversion, and competitive pressure) and monetary incentives in motivating demand planners to invest effort in forecasting that benefits the production planners. Their results indicate that social preferences can be used to incentivize demand planners to invest effort and that this effect is anticipated by production planners. The resulting more accurate demand forecasts and adapted production quantities result in higher company profit. They also provide an optimization model for optimally allocating investments to financial incentives and social preference building.

scholarly journals Intentions-Based Reciprocity to Monetary and Non-Monetary Gifts

Games ◽  
2018 ◽  
Vol 9 (4) ◽  
pp. 74 ◽  
Author(s):  
Matthew Chao
Keyword(s):  
Real World ◽  
Laboratory Tests ◽  
Social Preference ◽  
Social Preferences ◽  
Dictator Game ◽  
Monetary Incentives ◽  
Gift Giving ◽  
Marketing Literature ◽  
Real World Applications ◽  
Preference Models

Social preference models emphasize that perceived intentions motivate reciprocity. However, laboratory tests of this theory typically manipulate perceived intentions through changes in wealth resulting from a sacrifice in pay by another. There is little evidence on whether reciprocity occurs in response to perceived intentions alone, independent of concurrent changes in pay and giver sacrifice (and any associated guilt from that sacrifice). This paper addresses this gap in the literature by implementing a modified dictator game where gifts to dictators are possible, but where gift transactions are also stochastically prevented by nature. This leads to instances of observed gift-giving intentions that yield no sacrifice or change in outcomes. In addition, this study uses both monetary and non-monetary gifts; previous studies typically use only monetary incentives, even though real-world applications of this literature often involve non-monetary incentives such as business or marketing gifts. The results show that on average, dictators reciprocated strongly to just the intention to give a gift, and they also reciprocated similarly to both monetary and non-monetary gifts. These results are consistent with intentions-based models of social preferences and with much of the marketing literature on business gifts.

Financial Incentives as Signals: Experimental Evidence from the Recruitment of Village Promoters in Uganda

2019 ◽  
Vol 11 (1) ◽  
pp. 277-317 ◽  
Author(s):  
Erika Deserranno
Keyword(s):  
Experimental Evidence ◽  
Financial Incentives ◽  
Social Preferences ◽  
Job Characteristics ◽  
Applicant Pool ◽  
Experimental Variation ◽  
Positive Externality ◽  
Expected Earnings ◽  
Socially Motivated

I study the role of financial incentives as signals of job characteristics when these are unknown to potential applicants. To this end, I create experimental variation in expected earnings and use that to estimate the effect of financial incentives on candidates’ perception of a brand-new health-promoter position in Uganda and on the resulting size and composition of the applicant pool. I find that more lucrative positions are perceived as entailing a lower positive externality for the community and discourage agents with strong pro-social preferences from applying. While higher financial incentives attract more applicants and increase the probability of filling a vacancy, the signal they convey reduces the ability to recruit the most socially motivated agents, who are found to stay longer on the job and to perform better. (JEL D82, I18, J31, J63, M52, O15)

scholarly journals Social selectivity and social motivation in voles

2021 ◽  
Author(s):  
Annaliese K Beery ◽  
Sarah A Lopez ◽  
Katrina L Blandino ◽  
Nicole S Lee ◽  
Natalie S Bourdon ◽  
...  
Keyword(s):  
Natural Variation ◽  
Social Preference ◽  
Social Preferences ◽  
Social Motivation ◽  
Oxytocin Receptor ◽  
Social Reward ◽  
Social Monogamy ◽  
Prairie Voles ◽  
Meadow Voles

Selective relationships are fundamental to humans and many other animals, but relationships between mates, family members, or peers may be mediated differently. We examined connections between social reward and social selectivity, aggression, and oxytocin receptor signaling pathways in rodents that naturally form enduring, selective relationships with mates and peers (prairie voles) or peers (meadow voles). Female prairie and meadow voles worked harder to access familiar vs. unfamiliar individuals, regardless of sex, and huddled extensively with familiar subjects. Male prairie voles also displayed strongly selective huddling preferences for familiar animals, but worked hardest to repeatedly access females vs. males, with no difference in effort by familiarity. This demonstrates a fundamental disconnect between motivation and social selectivity in males, and reveals a striking sex difference in pathways underlying social monogamy. Meadow voles exhibited social preferences but low social motivation, consistent with tolerance rather than reward supporting social groups in this species. Natural variation in oxytocin receptor genotype was associated with oxytocin receptor density, and both genotype and receptor binding predicted individual variation in prosocial and aggressive behaviors. These results provide a basis for understanding species, sex, and individual differences in the mechanisms underlying the role of social reward in social preference.

scholarly journals Proactively and reactively managing risks through sales & operations planning

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hendryk Dittfeld ◽  
Kirstin Scholten ◽  
Dirk Pieter Van Donk
Keyword(s):  
Risk Management ◽  
Risk Identification ◽  
Operations Planning ◽  
Content Type ◽  
Support Organizations ◽  
Multiple Case ◽  
Planning Processes ◽  
Risk Treatment ◽  
Set Up

PurposeRisks can easily disrupt the demand–supply match targeted by sales and operations planning (S&OP). As surprisingly little is known of how organizations identify, assess, treat and monitor risks through tactical planning processes, this paper zooms in on the S&OP set-up and process parameters to explore how risks are managed through S&OP.Design/methodology/approachA multiple case study analyzes the S&OP processes of seven organizations in the process industry, drawing on 17 in-depth interviews with high-ranking representatives, internal and external documents, and a group meeting with participating organizations.FindingsThe study finds that organizations proactively design their S&OP based on their main risk focus stemming from the planning environment. In turn, such designs proactively support organizations' risk identification, assessment, treatment and monitoring through their S&OP execution. Reactively, a crisis S&OP meeting – making use of the structure of S&OP – can be used as a risk-treatment tool, and S&OP design can be temporarily adapted to deal with emerging risks.Originality/valueThis study is among the first to empirically elucidate risk management through S&OP. S&OP design, execution and adaption are identified as three interconnected strategies that allow organizations to manage risks. The design enables risk management activities in the monthly execution of S&OP. The reactive role of S&OP in risk management is particularly novel.

scholarly journals The Role of Incentives on the Performance of Health Workers in a Public Sector Organization in Abuja, Nigeria

2021 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Nkereuwem Akpan
Keyword(s):  
Public Sector ◽  
Organizational Performance ◽  
Significant Role ◽  
Financial Incentives ◽  
Health Workers ◽  
Research Work ◽  
Study Data ◽  
Monetary Incentives ◽  
The Public

The aim of the research work is to ascertain the role of incentives on the performance of health workers in some selected public sector using Abuja as a case study. Data collection was by the used of self-administered questionnaires, which were distributed to Doctors and Nurses in some selected public health facilities in Abuja. The statistical Package for Social Sciences (SPSS) software was used for data leaning and analysis. The result obtained from the analysis shows that 64.1% agreed that incentives brings job satisfaction, 51.4% agreed that non-monetary incentives promotes organizational performance , 63.3% agreed that non-monetary incentives promotes good work relationship, 53.7% agreed that non-monetary incentives reduces stress, 65.3% agreed that incentives help in the achievement of organizational goal, 58.7% agreed that incentives serve as a motivation to employees, 57.5% agreed that incentives help workers to improve skills and qualifications in line with their job and 60.2% agreed that incentives increase the level of employee’s confidence on employer. It was concluded that incentives based on terms and conditions of employment play significant role on the performance of health workers in the public sector, performance based incentives play significant role on the performance of health workers in the public sector, there is significant government attention towards incentives and performance of health care workers in the public sector and non-financial incentives play significant role on the performance of health workers in the public sector. 

The Relation Between Financial Incentives, Motivation, and Performance

2017 ◽  
Vol 16 (2) ◽  
pp. 61-76 ◽  
Author(s):  
Anaïs Thibault Landry ◽  
Marylène Gagné ◽  
Jacques Forest ◽  
Sylvie Guerrero ◽  
Michel Séguin ◽  
...  
Keyword(s):  
Financial Incentives ◽  
Work Performance ◽  
Autonomous Motivation ◽  
Compensation Plans ◽  
Work Settings ◽  
Path Analyses ◽  
Three Samples ◽  
And Performance ◽  
Performance Results

Abstract. To this day, researchers are debating the adequacy of using financial incentives to bolster performance in work settings. Our goal was to contribute to current understanding by considering the moderating role of distributive justice in the relation between financial incentives, motivation, and performance. Based on self-determination theory, we hypothesized that when bonuses are fairly distributed, using financial incentives makes employees feel more competent and autonomous, which in turn fosters greater autonomous motivation and lower controlled motivation, and better work performance. Results from path analyses in three samples supported our hypotheses, suggesting that the effect of financial incentives is contextual, and that compensation plans using financial incentives and bonuses can be effective when properly managed.

Sensitivity of Stationary Equitable Preferences

2017 ◽  
Author(s):  
Tapan Mitra
Keyword(s):  
Finite Number ◽  
Social Preference ◽  
Social Preferences ◽  
Principal Result ◽  
Fundamental Difficulty ◽  
The Future ◽  
Utility Stream ◽  
Preference Orders ◽  
Infinite Utility Streams

The paper studies the sensitivity implications of the class of monotone social preference orders on infinite utility streams which satisfy the axioms of Equity (Finite Anonymity) and Stationarity (Independent Future). The principal result of this investigation is that representability of such preference orders implies a certain lack of sensitivity to the utility stream of any finite number of generations, which we refer to as ‘insensitivity to the present’. Our result points to a fundamental difficulty in implementing the sustainability principle, which requires intertemporal social preferences to reflect fairly the interests of the generations in the present and in the future.

scholarly journals Assessing social preferences in reimbursement negotiations for new Pharmaceuticals in Oncology: an experimental design to analyse willingness to pay and willingness to accept

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Dominik J. Wettstein ◽  
Stefan Boes
Keyword(s):  
Willingness To Pay ◽  
Real World ◽  
Cognitive Biases ◽  
Social Preferences ◽  
Standard Of Care ◽  
Added Value ◽  
Amazon Mechanical Turk ◽  
Patient Organisation ◽  
Patient Benefit

Abstract Background Price negotiations for specialty pharmaceuticals take place in a complex market setting. The determination of the added value of new treatments and the related societal willingness to pay are of increasing importance in policy reform debates. From a behavioural economics perspective, potential cognitive biases and other-regarding concerns affecting outcomes of reimbursement negotiations are of interest. An experimental setting to investigate social preferences in reimbursement negotiations for novel, oncology pharmaceuticals was used. Of interest were differences in social preferences caused by incremental changes of the patient outcome. Methods An online experiment was conducted in two separate runs (n = 202, n = 404) on the Amazon Mechanical Turk (MTurk) platform. Populations were split into two (run one) and four (run two) equally sized treatment groups for hypothetical reimbursement decisions. Participants were randomly assigned to the role of a public price regulator for pharmaceuticals (buyer) or a representative of a pharmaceutical company (seller). In run two, role groups were further split into two different price magnitude framings (“real world” vs unconverted “real payoff” prices). Decisions had real monetary effects on other participants (in the role of premium payers or investors) and via charitable donations to a patient organisation (patient benefit). Results 56 (run one) and 59 (run two) percent of participants stated strictly monotone preferences for incremental patient benefit. The mean incremental cost-effectiveness ratio (ICER) against standard of care (SoC) was higher than the initial ICER of the SoC against no care. Regulators stated lower reservation prices in the “real world” prices group compared to their colleagues in the unconverted payoff group. No price group showed any reluctance to trade. Overall, regulators rated the relevance of the patient for their decision higher and the relevance of their own role lower compared to sellers. Conclusions The price magnitude of current oncology treatments affects stated preferences for incremental survival, and assigned responsibilities lead to different opinions on the relevance of affected stakeholders. The design is useful to further assess effects of reimbursement negotiations on societal outcomes like affordability (cost) or availability (access) of new pharmaceuticals and test behavioural policy interventions.

Choice and privatisation in Swedish primary care

2010 ◽  
Vol 6 (4) ◽  
pp. 549-569 ◽  
Author(s):  
Anders Anell
Keyword(s):  
Primary Care ◽  
Clinical Practice ◽  
Financial Incentives ◽  
Degrees Of Freedom ◽  
New Wave ◽  
Improve Performance ◽  
Financial Responsibility ◽  
New Models ◽  
Financial Characteristics

AbstractIn 2007, a new wave of local reforms involving choice for the population and privatisation of providers was initiated in Swedish primary care. Important objectives behind reforms were to strengthen the role of primary care and to improve performance in terms of access and responsiveness. The purpose of this article was to compare the characteristics of the new models and to discuss changes in financial incentives for providers and challenges regarding governance from the part of county councils. A majority of the models being introduced across the 21 county councils can best be described as innovative combinations between a comprehensive responsibility for providers and significant degrees of freedom regarding choice for the population. Key financial characteristics of fixed payment and comprehensive financial responsibility for providers may create financial incentives to under-provide care. Informed choices by the population, in combination with reasonably low barriers for providers to enter the primary care market, should theoretically counterbalance such incentives. To facilitate such competition is indeed a challenge, not only because of difficulties in implementing informed choices but also because the new models favour large and/or horizontally integrated providers. To prevent monopolistic behaviour, county councils may have to accept more competition as well as more governance over clinical practice than initially intended.

Conservation payments in a social context: determinants of tolerance and behavioural intentions towards wild cats in northern Belize

Oryx ◽  
2016 ◽  
Vol 51 (4) ◽  
pp. 730-741 ◽  
Author(s):  
Rebecca G. Harvey ◽  
Venetia Briggs-Gonzalez ◽  
Frank J. Mazzotti
Keyword(s):  
Financial Incentives ◽  
Camera Traps ◽  
Economic Factors ◽  
Monetary Incentives ◽  
Social Forces ◽  
Empirical Correlations ◽  
Risks And Benefits ◽  
Wild Cats ◽  
Definition Of ◽  
Forest Farm

AbstractCarnivores are valued by conservationists globally but protecting them can impose direct costs on rural, livestock-dependent communities. Financial incentives are increasingly used with the goal of increasing people's tolerance of predators, but the definition of tolerance has been vague and inconsistent. Empirical correlations between attitudinal and behavioural measures of tolerance imply that attitudes may be a valid proxy for behaviours. However, theoretical differences between the concepts suggest that attitudinal tolerance and behavioural intention to kill cats would have different underlying determinants. We surveyed 112 residents within a forest–farm mosaic in northern Belize inhabited by jaguars Panthera onca and four other species of wild cats. A conservation payment programme pays local landowners when camera traps record cat presence on their land. Results indicated that tolerance was associated with gender and participation in the camera-trapping programme, whereas intention to kill cats was associated with cultural group (Mennonites vs Mestizos), presence of children in the home and, to a lesser extent, tolerance. Neither dependent variable was significantly related to depredation losses or economic factors. Results suggest that monetary payments alone are unlikely to affect attitudes and behaviours towards carnivores. Payment programmes may be enhanced by accentuating non-monetary incentives, leveraging social norms and targeting specific groups with information about risks and benefits associated with carnivores. By empirically separating two concepts commonly conflated as ‘tolerance’ we clarify understanding of how social forces interact with financial incentives to shape people's relationships with predators.

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