Social Reality, the Boundaries of Self-fulfilling Prophecy, and Economics

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Social Reality, the Boundaries of Self-fulfilling Prophecy, and Economics

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dc.contributor.author Felin, Teppo en_US
dc.contributor.author Foss, Nicolai J. en_US
dc.date.accessioned 2009-02-04T10:27:25Z
dc.date.available 2009-02-04T10:27:25Z
dc.date.issued 2008-06-25T00:00:00Z en_US
dc.identifier.isbn 9788791815324 en_US
dc.identifier.uri http://hdl.handle.net/10398/7466
dc.description.abstract Organizational scholars have recently argued that economic theories and assumptions have adversely shaped management practice and human behavior, leading not only to the incorporation of trust-eroding market-mechanisms into organizations but also unnecessarily creating self-interested behavior. A number of highly influential papers have argued that the self-fulfilling nature of (even false) theories provides the underlying mechanism through which economics has adversely shaped not just social science but also management practice and individual behavior. We question these arguments, and argue that there are important boundary conditions to theories falsely fulfilling themselves, boundary conditions that have hitherto been unexplored in organizational research, and boundary conditions which question the underlying premises used by organizational scholars and social scientists to attack economics. We specifically build on highly relevant findings from social psychology, philosophy and organizational economics to show how (1) objective reality and (2) human nature provide two important boundary conditions for theories (falsely or otherwise) fulfilling themselves. We also defend organizational economics, specifically the use of high-powered incentives in organizations, and argue that self-interest (rightly understood) facilitates in creating beneficial individual and collective and societal outcomes. en_US
dc.format.extent 38 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2008-19 en_US
dc.title Social Reality, the Boundaries of Self-fulfilling Prophecy, and Economics en_US
dc.type wp en_US
dc.accessionstatus modt08jun25 nijemo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Center for Strategi og Globalisering en_US
dc.contributor.departmentshort SMG en_US
dc.contributor.departmentuk Center for Strategic Management and Globalization en_US
dc.contributor.departmentukshort SMG en_US
dc.idnumber 9788791815324 en_US
dc.publisher.city København en_US
dc.publisher.year 2008 en_US


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