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When people want to conduct a transaction, but doing so would be morally disreputable, they can obfuscate the fact that they are engaging in an exchange while still arranging for a set of transfers that are effectively equivalent to an exchange. Obfuscation through structures such as gift-giving and brokerage is pervasive across a wide range of disreputable exchanges, such as bribery and sex work. In this article, we develop a theoretical account that sheds light on when actors are more versus less likely to obfuscate. Specifically, we report a series of experiments addressing the effect of trust on the decision to engage in obfuscated disreputable exchange. We find that actors obfuscate more often with exchange partners high in loyalty-based trustworthiness, with expected reciprocity and moral discomfort mediating this effect. However, the effect is highly contingent on the type of trust; trust facilitates obfuscation when it is loyalty-based, but this effect flips when trust is ethics-based. Our findings not only offer insights into the important role of relational context in shaping moral understandings and choices about disreputable exchange, but they also contribute to scholarship on trust by demonstrating that distinct forms of trust can have diametrically opposed effects.

A wide class of economic exchanges, such as bribery and compensated adoption, are considered morally disreputable precisely because they are seen as economic exchanges. However, parties to these exchanges can structurally obfuscate them by arranging the transfers so as to obscure that a disreputable exchange is occurring at all. In this article, we propose that four obfuscation structures—bundling, brokerage, gift exchange, and pawning—will decrease the moral opprobrium of external audiences by (1) masking intentionality, (2) reducing the explicitness of the reciprocity, and (3) making the exchange appear to be a type of common practice. We report the results from four experiments assessing participants’ moral reactions to scenarios that describe either an appropriate exchange, a quid pro quo disreputable exchange, or various forms of obfuscated exchange. In support of our hypotheses, results show that structural obfuscation effectively mitigates audiences’ moral offense at disreputable exchanges and that the effects are substantially mediated by perceived attributional opacity, transactionalism, and collective validity.

This article examines the economic effects of prizes with implications for the diversity of market positions, especially in cultural fields. Many prizes have three notable features that together yield an emergent reward structure: (1) consumers treat prizes as judgment devices when making purchase decisions, (2) prizes introduce sharp discontinuities between winners and also-rans, and (3) appealing to prize juries requires costly sacrifices of mass audience appeal. When all three conditions obtain, winning a prize is valuable, but seeking it is costly, so trying and failing yields the worst outcome-a logic we characterize as a Tullock lottery. We test the model with analyses of Oscar nominations and Hollywood films from 1985 through 2009. We create an innovative measure of prize-seeking, or "Oscar appeal," on the basis of similarity to recent nominees in terms of such things as genre, plot keywords, and release date. We then show that Oscar appeal has no effect on profitability. However, this zero-order relationship conceals that returns to strong Oscar appeals are bimodal, with super-normal returns for nominees and large losses for snubs. We then argue that the effect of judgment devices on fields depends on how they structure and refract information. © American Sociological Association 2014.

This article adopts a relational perspective to demonstrate that characteristics of the dyadic relationship between supervisors and their employees are critical to understanding individual-level exploration—understood as the extent to which organizational members pursue new opportunities and experiment with changes to current practices. To this end, we introduce the concept of power framing—that is, whether the control over valued resources is emphasized as the ability to reward or to punish—and propose that supervisor power framing shapes employee exploration. In an experimental study, we demonstrate that reward (versus punishment) power framing increases employee exploration behavior and that this effect is mediated by perceived trustworthiness of the supervisor. In a second survey study, we replicate these findings in a field sample and show that the relationship between reward power framing and exploration depends on the degree to which the focal employee is sensitive to power characteristics (i.e., power distance orientation). This investigation advances scholarship on the microfoundations of exploration while also highlighting the ability of leaders to alter trustworthiness perceptions and induce employee exploration through power framing. Funding: This work was supported by a National Science Foundation CAREER Award from the Directorate for Social, Behavioral and Economic Sciences [Grant 1943688] granted to O. Schilke. Additional funding was provided by the Sauder School of Business, University of British Columbia. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2023.1672. [ABSTRACT FROM AUTHOR]

This study provides a comprehensive analysis of distribution channel choices of new entrepreneurial ventures (NEVs). First, factors that influence NEVs' choice of distribution channels are examined. Second, performance consequences of [...]

Despite substantial scholarly interest in the role of contracts in alliances, few studies have analyzed the mechanisms and conditions relevant to their influence on alliance performance. In this paper, we build on the information-processing view of the firm to study contracts as framing devices. We suggest that the effects of contracts depend on the types of provisions included and differentiate between the consequences of control and coordination provisions. Specifically, control provisions will increase the level of conflict between alliance partners, whereas coordination provisions will decrease such conflict. Conflict, in turn, reduces alliance performance, suggesting a mediated relationship between alliance contracts and performance. We also contribute to a better understanding of contextual influences on the consequences of contracts and investigate the interactions of each contractual function with both internal and external uncertainties. Key informant survey data on 171 alliances largely support our conceptual model. [ABSTRACT FROM AUTHOR]