Negotiation, Organizations & Markets

- June 4, 2025
- Editorial
Employee Stress Is a Business Risk—Not an HR Problem

By: Marion Chomse, Lydia Roos, Reeva Misra and Ashley Whillans

Workplace stress, on the rise for decades, has been treated by many organizations as a personal issue instead of a business-critical risk that merits executive oversight. This is likely due in part to the fact that companies have not effectively quantified and tracked the cost stress poses to integral business outcomes. Companies can take charge of the avoidable costs of stress by surveying their workforce and mapping the stress they report onto quantifiable outcomes like revenue, customer satisfaction, and performance evaluations. Understanding how fluctuations in stress impact these outcomes can help businesses come up with and initiate targeted solutions to reduce the likelihood of disruption, protect workforce health, and unlock long-term competitive advantage.
- June 4, 2025
- Editorial
Employee Stress Is a Business Risk—Not an HR Problem

By: Marion Chomse, Lydia Roos, Reeva Misra and Ashley Whillans

Workplace stress, on the rise for decades, has been treated by many organizations as a personal issue instead of a business-critical risk that merits executive oversight. This is likely due in part to the fact that companies have not effectively quantified and tracked the cost stress poses to integral business outcomes. Companies can take charge...
- 2025
- Chapter
Employer-Based Short-Term Savings Accounts

By: Sarah Holmes Berk, John Beshears, Jay Garg, James J. Choi and David Laibson

We study the introduction of a choice architecture design intended to increase short-term savings among employees at five U.K. firms. Employees were offered the opportunity to opt into a payroll deduction program that auto-deposits funds from each paycheck into a short-term savings account from which withdrawals are possible at any time. We find that employees who opted into the program kept using it. Among employees whose accounts were created early enough to be observed over the first 12 months after their account activation and who did not separate from employment during this period, 96% still had a balance greater than £1 and 87% received an automatic payroll contribution in month 12. However, product take-up was very low: no more than 0.7% of eligible employees ever activated an account. Opt-in access to short-term savings programs does not elicit widespread participation.
- 2025
- Chapter
Employer-Based Short-Term Savings Accounts

By: Sarah Holmes Berk, John Beshears, Jay Garg, James J. Choi and David Laibson

We study the introduction of a choice architecture design intended to increase short-term savings among employees at five U.K. firms. Employees were offered the opportunity to opt into a payroll deduction program that auto-deposits funds from each paycheck into a short-term savings account from which withdrawals are possible at any time. We find...
- May 2025
- Article
Imagining the Future: Memory, Simulation and Beliefs

By: Pedro Bordalo, Giovanni Burro, Katherine B. Coffman, Nicola Gennaioli and Andrei Shleifer

How do people form beliefs about novel risks, with which they have little or no experience? Motivated by survey data on beliefs about Covid we collected in 2020, we build a model based on the psychology of selective memory. When a person thinks about an event, different experiences compete for retrieval, and retrieved experiences are used to simulate the event based on how similar they are to it. The model predicts that different experiences interfere with each other in recall and that non domain-specific experiences can bias beliefs based on their similarity to the assessed event. We test these predictions using data from our Covid survey and from a primed-recall experiment about cyberattack risk. In line with our theory of similarity-based retrieval and simulation, experiences and their measured similarity to the cued event help account for experience effects, priming effects, and the interaction of the two in shaping beliefs.
- May 2025
- Article
Imagining the Future: Memory, Simulation and Beliefs

By: Pedro Bordalo, Giovanni Burro, Katherine B. Coffman, Nicola Gennaioli and Andrei Shleifer

How do people form beliefs about novel risks, with which they have little or no experience? Motivated by survey data on beliefs about Covid we collected in 2020, we build a model based on the psychology of selective memory. When a person thinks about an event, different experiences compete for retrieval, and retrieved experiences are used to...

About the Unit

The NOM Unit seeks to understand and improve the design and management of systems in which people make decisions: that is, design and management of negotiations, organizations, and markets. In addition, members of the group share an abiding interest in the micro foundations of these phenomena.

Our work is grounded in the power of strategic interaction to encourage individuals and organizations to create and sustain value (in negotiations, in organizations, and in markets). We explore these interactions through diverse approaches: Although many of us have training in economics, we also have members with backgrounds in social psychology, sociology, and law.

NOM seeks to apply rigorous scientific methods to real-world problems -- producing research and pedagogy that is compelling to both the academy and practitioners.

Recent Publications

Employee Stress Is a Business Risk—Not an HR Problem

By: Marion Chomse, Lydia Roos, Reeva Misra and Ashley Whillans

June 4, 2025 |
Editorial |
Harvard Business Review (website)

Workplace stress, on the rise for decades, has been treated by many organizations as a personal issue instead of a business-critical risk that merits executive oversight. This is likely due in part to the fact that companies have not effectively quantified and tracked the cost stress poses to integral business outcomes. Companies can take charge of the avoidable costs of stress by surveying their workforce and mapping the stress they report onto quantifiable outcomes like revenue, customer satisfaction, and performance evaluations. Understanding how fluctuations in stress impact these outcomes can help businesses come up with and initiate targeted solutions to reduce the likelihood of disruption, protect workforce health, and unlock long-term competitive advantage.

Citation

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Dungeons & Dragons: Repairing Ecosystem Trust (B)

By: Gabriel Rossman, Oliver Schilke and Julian Zlatev

May 2025 |
Supplement |
Faculty Research

Supplements the (A) case, 924-008.

Citation

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Dungeons & Dragons: Repairing Ecosystem Trust (A) and (B)

By: Gabriel Rossman, Oliver Schilke and Julian Zlatev

May 2025 |
Teaching Note |
Faculty Research

Citation

Employer-Based Short-Term Savings Accounts

By: Sarah Holmes Berk, John Beshears, Jay Garg, James J. Choi and David Laibson

2025 |
Chapter |
Faculty Research

We study the introduction of a choice architecture design intended to increase short-term savings among employees at five U.K. firms. Employees were offered the opportunity to opt into a payroll deduction program that auto-deposits funds from each paycheck into a short-term savings account from which withdrawals are possible at any time. We find that employees who opted into the program kept using it. Among employees whose accounts were created early enough to be observed over the first 12 months after their account activation and who did not separate from employment during this period, 96% still had a balance greater than £1 and 87% received an automatic payroll contribution in month 12. However, product take-up was very low: no more than 0.7% of eligible employees ever activated an account. Opt-in access to short-term savings programs does not elicit widespread participation.

Keywords: Personal Finance; Compensation and Benefits; Well-being; Behavior; Investment Funds; Employees; United Kingdom

Citation

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Imagining the Future: Memory, Simulation and Beliefs

By: Pedro Bordalo, Giovanni Burro, Katherine B. Coffman, Nicola Gennaioli and Andrei Shleifer

May 2025 |
Article |
Review of Economic Studies

How do people form beliefs about novel risks, with which they have little or no experience? Motivated by survey data on beliefs about Covid we collected in 2020, we build a model based on the psychology of selective memory. When a person thinks about an event, different experiences compete for retrieval, and retrieved experiences are used to simulate the event based on how similar they are to it. The model predicts that different experiences interfere with each other in recall and that non domain-specific experiences can bias beliefs based on their similarity to the assessed event. We test these predictions using data from our Covid survey and from a primed-recall experiment about cyberattack risk. In line with our theory of similarity-based retrieval and simulation, experiences and their measured similarity to the cued event help account for experience effects, priming effects, and the interaction of the two in shaping beliefs.

Keywords: Expectations; Memory; COVID-19 Pandemic; Risk and Uncertainty; Cognition and Thinking

Citation

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The Invention of Corporate Governance

By: Yueran Ma and Andrei Shleifer

2025 |
Working Paper |
Faculty Research

The analysis of corporate governance begins with a central feature of modern capitalism—the separation of ownership and control in large corporations—first empirically documented by Berle and Means (1932). Such separation entails several agency problems reflecting conflicts between managers and shareholders, such as self-dealing by managers, low effort, consumption of perquisites, and excessive growth and diversification. Berle and Means saw self-dealing as the central agency problem and stressed the law as the fundamental mechanism of addressing it. Jensen and Meckling (1976) considered the consumption of perquisites and emphasized private mechanisms, such as financial incentives for managers, to counter wasteful perks. Jensen (1986) instead focused on excessive growth and diversification, which led him to count on leverage and takeovers. The combination of public corporate governance mechanisms, mostly the law, and market governance shaped both theory and practice.

Keywords: Corporate Governance; Law; Business and Shareholder Relations

Citation

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Gender and Preferences for Performance Feedback

By: Katherine Baldiga Coffman and David Klinowski

April 2025 |
Article |
Management Science

Across multiple studies, we investigate whether there are gender differences in preferences for receiving performance feedback. We vary many features of the feedback context: whether the performance task is a cognitive test or a mock interview, whether the feedback is objective or subjective, and whether it is possible for the provider of the feedback to discriminate on the basis of gender. Consistent with past work, we find that women are less optimistic about their performance than men, and that, on average, more optimistic individuals have greater demand for feedback. Results like these have been hypothesized in the literature to imply that women will shy away from performance feedback more so than men. And, when we survey participants from a similar population, they also anticipate that women will demand feedback at lower rates than men. Yet, across our two incentivized studies, we find that women are no less eager to receive performance feedback than men. Understanding whether and how these results might generalize to broader contexts, particularly those with more social factors, is an important question for future work.

Keywords: Feedback; Gender; Cognition and Thinking; Motivation and Incentives; Behavior

Citation

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Buying (Quality) Time Predicts Relationship Satisfaction

By: A.V. Whillans, Jessie Pow and Joe J. Gladstone

April 2025 |
Article |
Journal of Personality and Social Psychology

Seven studies examine the association between time-saving purchases (e.g., housecleaning and meal delivery services) and relationship satisfaction. Study 1 uses an eleven-year longitudinal panel survey to show that increases in time-saving purchases predict long-term increases in relationship satisfaction. Study 2 replicates these findings with a six-week daily diary study, demonstrating that time-saving purchases predict daily increases in relationship satisfaction particularly for members of dual-income couples who are experiencing higher levels of stress. Studies 3 through 4b reveal that time-saving purchases are most beneficial when couples translate this influx of temporal resources into quality time spent together. Study 5 identifies two key aspects of quality time—positive mood when together and perceived support—that uniquely predict relationship satisfaction. Study 6, a pre-registered study, provides comprehensive evidence for our conceptual model: Members of committed relationships who make time-saving purchases more effectively manage daily stressors (i.e. household chores) and spend more quality time together which predicts increased relationship satisfaction. Once again, these benefits are strongest for individuals experiencing higher levels of stress. These findings develop a nuanced framework connecting time-saving purchases to relationship satisfaction.

Keywords: Personal Finance; Family and Family Relationships; Satisfaction; Well-being