Jim Sundali

• PhD
• Professor (Full) at University of Nevada, Reno

We explore different contexts and mechanisms that might promote or alleviate the gender effect in risk aversion. Our main result is that we do not find gender differences in risk aversion when the choice is framed as a willingness-to-accept (WTA) task. When the choice is framed as a willingness-to-pay (WTP) task, men are willing to pay more and thu...

We examine how almost winning in roulette affects subsequent betting behavior. Our main finding is heterogeneity in gambler behavior with some gamblers less likely to bet on numbers that were near misses on the prior spin and other gamblers more likely to bet on near miss numbers. Using a unique data set from the game rapid roulette, we model the l...

Purpose – The purpose of this paper is to conduct a controlled experiment to examine the effect of goal setting and affect framed feedback on repeated asset allocation investment decisions. Design/methodology/approach – The design of the experiment is a 2×2 between subject design. Subjects allocated monies among four investments for 20 periods. One...

In this paper, we examine various factors and subject characteristics including large swings in stock market prices, initial returns, gender and age to see if they have an impact on asset allocation. We also examine whether large swings in stock prices cause investors to react irrationally. Our results indicate that subjects who experience a series...

Our goal is this chapter is not to review this entire body of research, which would be the subject of a book in and of itself. Rather, we have identified a few areas of interest where a body of research exists and where behavioral regularities have been identified which speak to the question of why, and how, people gamble. In section 1, below we di...

The study reports the results of an asset allocation experiment in which subjects managed an endowment of money over a 20 "year" time period. While grounded in theory, the study takes an applied look at the ability of subjects to efficiently and effectively make asset allocation decisions similar to those found in 401(k) accounts. The main conclusi...

We examine two departures of individual perceptions of randomness from probability theory: the hot hand and the gambler's fallacy, and their respective opposites. This paper's first contribution is to use data from the field (individuals playing roulette in a casino) to demonstrate the existence and impact of these biases that have been previously...

We examine two departures of individual perceptions of randomness from probability theory: the hot hand and the gambler's fallacy, and their respective opposites. This paper's first contribution is to use data from the field (individuals playing roulette in a casino) to demonstrate the existence and impact of these biases that have been previously...

Organizations are fundamentally changing retirement compensation as defined benefit plans are being replaced by defined contribution plans. Psychological contract theory suggests this shift will exacerbate the trend toward transactional employment while expectancy theory posits enhanced motivational outcomes. New research directions are proposed to...

Research on decision making under uncertainty demonstrates that intuitive ideas of randomness depart systematically from the laws of chance. Two such departures involving random sequences of events have been documented in the laboratory, the gambler’s fallacy and the hot hand. This study presents results from the field, using videotapes of patrons...

Signaling occurs when a firm attempts to indicate, truthfully or not, its intended course of action. Competitors often use signaling in market entry situations to coordinate actions, or possibly to deter entry by other firms. This paper examines the value of cheap talk and costly signaling in a large group market entry game. Eighty subjects, twenty...

Cooperative strategy is increasingly being accepted as a legitimate construct in strategic management. In this paper we argue that in order to use cooperative strategy in concert with competitive strategy, what some have called co-opetition, an environment of reciprocity is required. This paper reviews the theoretical roots of co-opetive behavior a...

Advertising may have a significant impact on a hotel's competitive advantage and financial performance. There is, however, an ongoing debate as to the role of advertising. One view suggests that advertising yields market power, which then fosters brand loyalty. The opposing view suggests that advertising, among other roles, is a method to inform cu...

Coordination behavior is studied experimentally in a class of noncooperative market entry games featuring symmetric players, complete information, zero entry costs, and several randomly presented values of the market capacity. Once the market capacity becomes publicly known, each player must decide privately whether to enter the market and receive...

The possibility that professional stock analysts could be outperformed by throwing darts at the stock listing page has intrigued stock market enthusiasts for years. In this study, we examine the results from the Wall Street Journal's Investment Dartboard Columns and find that the experts outperform the darts by a wide margin and outperform five dif...

We report the results of two experiments designed to test competitively the induction against the deterrence theory in Selten’s (1978) chain store game with complete and perfect information. Our major purpose is to determine the number of entrants (m) needed for rendering the deterrence argument effective. Our results show that if we increase m fro...

The subjective value given to time, also known as the psychological interest rate, or the subjective price of time, is a core concept of the microeconomic choices. Individual decisions using a unique and constant subjective interest rate will refer to an exponential discounting function. However, many empirical and behavioural studies underline the...

The demand game is a noncooperative two-person ultimatum game with one-sided uncertainty in which the Sender knows the value of the shared surplus (pie) but the Receiver only knows its probability distribution (Mitzkewitz and Nagel, 1993). We study experimentally the effects of systematic changes in the variability of the pie distribution on the Se...

We report the results of two experiments designed to study tacit coordination in a class of market entry games with linear payoff functions, binary decisions, and zero entry costs, in which each of n = 20 players must decide on each trial whether or not to enter a market whose capacity is public knowledge. The results show that although the subject...

Past research, both theoretical and applied, has discounted the ability of individuals to accurately forecast security prices. Fama′s (1970, 1976) theoretical work on capital market efficiency, and the empirical studies of Stael von Holstein (1972) and Yates, McDaniel, and Brown (1991), suggests that even "experts" cannot perform any better than si...

Spiraling compensation costs over the past two decades has led many firms to change their compensation strategies. There has been a shift in employee pension benefits as a form of compensation, as firms are rapidly moving from defined benefit plans towards defined contribution plans. In this study, we examine data and prior empirical analyses from...

Thesis (Ph. D.)--University of Arizona, 1995. Abstract. Includes bibliographical references (leaves 242-246). Photocopy.