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Management, Organisation
und ökonomische Analyse
Band 17
Herausgegeben von
P.-J. Jost, Vallendar, Deutschland
In den vergangenen zwei Jahrzehnten hat sich ein neuer mikroökonomischer
Ansatz entwickelt, der nicht wie die traditionelle neoklassische Analyse auf den
Marktbereich beschränkt ist, sondern der grundsätzlich für die Analyse sozialer
Interaktionssituationen geeignet ist. Informationsökonomie, Spieltheorie, expe-
rimentelle Studien, Neue Institutionenökonomie und Ökonomische Psychologie
sind wichtige Bausteine dieses ökonomischen Ansatzes.
Ziel der Schriftenreihe ist die Anwendung und Weiterentwicklung dieses Ansat-
zes auf betriebswirtschaftliche Fragestellungen. Gegenstand der Untersuchungen
sind die unterschiedlichsten unternehmensinternen Probleme aus den Bereichen
Finanzierung, Organisation und Strategisches Management. Die Reihe soll so zu
einer mikroökonomischen Fundierung des Faches beitragen.
Herausgegeben von
Prof. Dr. Peter-J. Jost
WHU – Otto Beisheim School of Management
Vallendar, Deutschland
Sebastian Burchhardt
Competition with
Identity Driven Entry
A Principal Multi-Agent Model on the
Success of Mergers and Acquisitions
Foreword by Prof. Dr. Peter-J. Jost
Vallendar, Germany
Dissertation Wissenschaftliche Hochschule für Unternehmensführung (WHU) – Otto

Beisheim School of Management, Vallendar, 2014
Management, Organisation und ökonomische Analyse

ISBN 978-3-658-10145-9 ISBN 978-3-658-10146-6 (eBook)
DOI 10.1007/978-3-658-10146-6
Library of Congress Control Number: 2015940575
Springer Gabler
© Springer Fachmedien Wiesbaden 2015
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transmission or information storage and retrieval, electronic adaptation, computer software, or by
similar or dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a speci¿c statement, that such names are
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(www.springer.com)
Foreword
In the face of international competition, many business enterprises have made merger &
acquisition strategies part of their standard repertoire. However, for a number of reasons, it
does not automatically follow that the resulting company merger will be successful. One such
reason is the “merger syndrome”, which can be attributed to a loss of identity in the
restructured organization. The viewpoint taken by the social identity approach is that a
company merger combines two social groups to form a single new group, causing friction
between the two original group identities. In both company groups, this lack of continuity
results in a loss of identification with the post-merger organization and thus diminishes the
success rate of the merger.
Sebastian Burchhardt’s thesis addresses this phenomenon, using a game theory model to
investigate ways of counteracting the merger syndrome. He builds on the fundamental work
of Akerlof and Kranton, according to whom every player is characterized by a social identity.
Acting in a manner that is out of keeping with a player’s identity not only causes that player to
lose his or her identity, but may also negatively impact the identity of other players as a result
of the externalities involved during interactions with those players.
The path from this basic model to an explanation of the failure of company mergers on the
basis of social identities is a highly ambitious one to take. Since Mr Burchhardt furthermore
investigates the role of the post-merger company leader in shaping the interactions between
the various groups of employees after the merger, his work unquestionably delivers an
explanation of great significance to practical management research. His treatise thus not only
supplements the existing economic literature on identity-based behavior, but also enriches
the management literature focusing on the failure of company mergers.
All in all, then, Mr Burchhardt’s treatise will benefit not only readers whose interest is purely
theoretical, but also anyone who is interested in drawing inferences for practical application.
May it gain the wide readership that it so clearly merits!
Peter-J. Jost
V
Acknowledgements
The research presented in this thesis was carried out during my assignment as an external
postgraduate student at the Chair of Organization Theory, WHU - Otto Beisheim School of
Management. The time has now come to express my gratitude to all who accompanied me
through this period besides my commitment as a professional and as a husband and father.
First of all I would like to thank Prof. Dr. Peter-J. Jost, the chairman and first supervisor of my
thesis. He trained my analytical skills through numerous inspiring discussions and taught me
to apply game theory to organizational problems, knowledge that is of particular importance
in professional life.
Next I would like to thank Prof. Dr. Andreas Hack for further advice and for being the second
supervisor of my thesis.
My thanks also go to my close friend Dr. Andreas Conrad Schempp for critical discussions
and comments on the thesis. My special thanks go to Ruth Thaler for revising my thesis with
regard to the subtleties of the English language. Any remaining mistakes are, of course, my
own.
And last but not least I would like to thank my family for their support and enduring
encouragement throughout the whole time. Special thanks are due to my wife who, besides
raising two wonderful children, managed to provide me with sufficient freedom to accomplish
my research.
VII
Table of Contents
1 Introduction ....................................................................................................................... 1
1.1 Purpose........................................................................................................................ 1
1.2 Structure of the Thesis ................................................................................................ 2
2 Identity and Competition in an Organizational Context ............................................... 5
2.1 Social Identity Approach .............................................................................................. 5

2.1.1 Historical Context ..................................................................................................... 5
2.1.2 Social Identity Theory .............................................................................................. 6
2.1.2.1 Self-Concept and Social Identity ...................................................................... 6
2.1.2.2 Social Comparison and Group Differentiation.................................................. 7
2.1.2.3 Critical Evaluation of the “Social Identity Theory” ............................................ 9
2.1.3 Self-Categorization Theory .................................................................................... 10
2.1.3.1 Groups as Social Categories .......................................................................... 10
2.1.3.2 Classification of Social Categories ................................................................. 11
2.1.3.3 Perceived Relative Deprivation ...................................................................... 12
2.1.3.4 Critical Evaluation of “Self Categorization Theory” ........................................ 14
2.1.4 Organizational Change .......................................................................................... 15
2.1.4.1 Organizational Identity and Identification ....................................................... 15
2.1.4.2 Foci of Identification ........................................................................................ 16
2.1.4.3 Sustainability during Change .......................................................................... 17
2.2 The Social Identity Approach in Corporate Mergers & Acquisitions ......................... 18
2.2.1 Introduction to M&A ............................................................................................... 18
2.2.2 The Concept of M&A.............................................................................................. 21
2.2.2.1 Definition of M&A ............................................................................................ 21
2.2.2.2 Forms of M&A ................................................................................................. 21
2.2.3 Motivation for M&A ................................................................................................. 22
2.2.3.1 The Acquirer’s Motivation ............................................................................... 23
2.2.3.2 The Acquiree’s Motivation .............................................................................. 25
2.2.3.3 Mergers as Outcome ...................................................................................... 26
2.2.4 Realization of M&A Transactions .......................................................................... 27
2.2.4.1 Pre-Merger Phase .......................................................................................... 27
2.2.4.2 Transaction Phase .......................................................................................... 28
2.2.4.3 Post-Merger Integration Phase ...................................................................... 28
2.2.5 Performance Factors of M&A Projects .................................................................. 30
IX
2.2.5.1 M&A Performance Measurement ................................................................... 30
2.2.5.2 M&A Success Rates ....................................................................................... 31
2.2.5.3 Reasons for Transaction Failure .................................................................... 32
2.2.6 Social Identity Approach and M&A performance .................................................. 36
2.3 Motivation and Competition ....................................................................................... 39

2.3.1 “Division of Labor” and “Exchange” as Basic Organizational Principles .............. 39
2.3.2 Motivation as Part of the Organizational Problem ................................................. 41
2.3.3 Incentive Systems .................................................................................................. 42
2.3.3.1 Extrinsic and Intrinsic Motivation .................................................................... 43
2.3.3.2 Deployment of Motivational Instruments ........................................................ 45
2.3.4 The Motivational Aspect of Competition ................................................................ 46
2.3.4.1 Cooperation versus Competition .................................................................... 46
2.3.4.2 Measurement of Intrinsic Motivation .............................................................. 47
2.3.4.3 Empirical Research on the Influence of Competition on Intrinsic Motivation 48
2.3.4.4 Critical Evaluation of Empirical Research Results and Implications for
Agency Theory .............................................................................................................. 55
2.3.4.5 Intrinsic Rewards ............................................................................................ 57
2.3.5 Competition as a Behavioral Prescription ............................................................. 59
3 The Model ........................................................................................................................ 61
3.1 Review of Existing Game Theory Literature and Identification of the Research Gap
61
3.1.1 Economic Contest Literature and Group Size ....................................................... 61
3.1.2 The Symmetric Winner-Take-All Contest .............................................................. 63
3.1.3 Identity in Economics ............................................................................................. 65
3.1.4 Research Gap ........................................................................................................ 70
3.2 Identity-Driven Contest with Endogenous Entry ....................................................... 72

3.2.1 Introduction to the Basic Model ............................................................................. 72
3.2.2 Specifications of the Basic Model .......................................................................... 73
3.2.3 Game Structure of the Basic Model....................................................................... 75
3.2.4 Equilibrium Analysis ............................................................................................... 77
3.2.4.1 Agent’s Utility Functions ................................................................................. 77
3.2.4.2 Optimal Effort Levels ...................................................................................... 78
3.2.4.3 Optimal Choice of Activities ............................................................................ 79
3.2.4.4 Optimal Choice of Social Category ................................................................ 80
3.2.4.5 Optimal Contest Structure .............................................................................. 82
3.2.5 Implications of the Basic Model ............................................................................. 84
X
3.3 Identity-Driven Group Contest with Endogenous Entry ............................................ 86
3.3.1 Introduction to the Extended Model ....................................................................... 86
3.3.2 Specifications of the Extended Model ................................................................... 87
3.3.3 Game Structure of the Extended Model ................................................................ 89
3.3.4 Equilibrium Analysis ............................................................................................... 90
3.3.4.1 Agent’s Utility Functions ................................................................................. 90
3.3.4.2 Optimal Effort Levels ...................................................................................... 92
3.3.4.3 Optimal Choice of Activities ............................................................................ 94
3.3.4.4 Optimal Choice of Social Category ................................................................ 97
3.3.4.5 Optimal Contest Structure ............................................................................ 100
3.3.4.6 Special Case ................................................................................................. 102
3.3.5 Implications of the Extended Model for M&A ...................................................... 103
4 Conclusion on the Model ............................................................................................. 108
4.1 Capabilities of the Model ......................................................................................... 108
4.2 Prospects for Future Research ............................................................................... 109
A. Appendix ........................................................................................................................ 111
A1 Optimal Effort Levels of Competing Agents and Proof of Proposition 1 ...................... 111
A2 Optimal Choice of Activities and Proof of Proposition 2 ............................................... 114
A3 Optimal Choice of Social Category and Proof of Proposition 3 ................................... 116
A4 Optimal Contest Structure and Proof of Proposition 4 ................................................. 117
A5 Optimal Effort Levels of Competing Agents and Proof of Proposition 5 ...................... 121
A6 Optimal Choice of Activities and Proof of Propositions 6 and 7 ................................... 125
A7 Optimal Choice of Social Category and Proof of Proposition 8 ................................... 130
A8 Proof of Proposition 9.................................................................................................... 133
B. Model variables ............................................................................................................. 135
B1 Basic Model ................................................................................................................... 135
B2 Extended Model ............................................................................................................ 135
Bibliography.......................................................................................................................... 137
XI
List of Abbreviations
CSF – Contest Success Function

DCF – Discounted Cash Flow
KPI – Key Performance Indicator
LoI – Letter of Intent
MoU – Memorandum of Understanding
M&A – Mergers and Acquisitions
R&D – Research and Development
SCT – Self Categorization Theory
SIA – Social Identity Approach
SIT – Social Identity Theory
XIII
Table of Figures
Figure 1: Continuum of Relative Deprivation (CF. Tajfel H., 1982, 110 ff.) ............................ 13
Figure 2: Process Model of Intrinsic Motivation (Tauer, J.M. / Harackiewicz, J.M., 1999, 212)
.................................................................................................................................................. 54
Figure 3: Decision Tree of Prototype Model (Akerlof, G. / Kranton, R. 2000, 729) ................ 68
Figure 4: Decision Tree of the Basic Model ............................................................................. 76
Figure 5: Decision Tree for the Extended Model ..................................................................... 90
Figure 6: Relation between career-oriented agents in both groups ifࢿ ൌ ૙ ........................... 96
Figure 7: Equilibrium condition between ઻૚ and ઻૛ ................................................................ 99
XV
1 Introduction
1.1 Purpose
The “Social Identity Approach” (SIA) was developed by Tajfel and Turner in the early 1970s
as a means of analyzing and understanding inter-group processes. In looking at a person’s
identity as the center of his or her self-concept and resultant motivation, it introduced a
fundamental research stream in social psychology. The most important aspect of SIA is the
social context to which a person perceives him- or herself to belong. A person’s social
identity is to be defined as that part of his or her overall identity that is derived from the
membership of a certain group. When applied in an organizational context, this means that
an employee’s behavior is not only driven by the occupation itself but also by factors such as
whether the person is a man or a woman.1
Given that a company is typically represented by many different stakeholders, many different
social identities will clearly emerge. Among these, the present thesis focuses on the top
performers and key players within a company who may be seen as careerists. These
employees consider their profession to be a very important part of their life and are willing to
assert themselves over others in order to be promoted within the organization.
On the other hand there are those employees who do not regard their profession as the
center of their life and prefer to spend their time with their families and friends. This in no way
implies that they are underperformers, but as they do not see the company as the center of
their life, they cannot be expected to outperform those colleagues who clearly intend to make
a career.
Since the social context only occurs within the overall social environment, the SIA research
stream can also be consulted to explain the impact of organizational change on the behavior
of the employees concerned. Especially in recent years, an increasing number of studies
focusing on M&A have been published whose goal has been particularly to examine the high
failure rates of M&A in the light of SIA.
The intention of the present thesis is to conduct an investigation based on game theory on
the behavioral patterns of career-oriented employees who are affected by organizational
change. Game theory as a conflict-theoretical approach makes it possible to analyze the
relationship between an employer and its employees especially in the case of conflicts
resulting from organizational change.2 Particularly in such a context, the contest literature
provides a powerful toolset with which to describe conflicts in economic interactions and
1
Cf. Reicher S. et al., 2010, 45 ff.
2
Cf. Jost, P.-J. / Weitzel U., 2007, 1
1
S. Burchhardt, Competition with Identity Driven Entry, Management, Organisation und ökonomische
Analyse 17, DOI 10.1007/978-3-658-10146-6_1, © Springer Fachmedien Wiesbaden 2015
organizational problems. It is therefore not surprising that, in the past, numerous competition
models have been developed and applied to various organizational issues.
Another important contribution to game theory is the development of identity models by
Akerlof and Kranton in the late 1990s. They enhanced purely economy-driven utility functions
with identity components by referring to the above mentioned SIA research stream. Akerlof
and Kranton have meanwhile published several variations of their identity model; however,
they focus primarily on socio-economic questions and not on organizational problems.
No game theory model has yet combined the two approaches to describe the behavioral
patterns of persons who see themselves as competitors. The intention of this thesis is to fill
this precise research gap, resulting in a game theory model that describes contest situations
where the entry decision is endogenous and driven by the social identity of the respective
agents. This combination of identity economic models with elements of contest models is of
interest in that it makes it possible to analyze and understand the decisions made by
employees within a company, particularly those who are career-based, which in turn is of
significant relevance to entrepreneurial practice. The model can be applied to organizational
change such as M&A transactions in order to describe the behavioral patterns of the
employees affected and their impact on the success of the transaction itself. In addition the
model enables recommendations to be made for the management of the merger itself.
Before beginning with the theoretical deviation and describing the model, the next chapter
will outline the structure and approach of the thesis.
1.2 Structure of the Thesis
Besides its introduction and conclusion, the present thesis is structured into four chapters.
The first part of chapter 2 will focus on the theoretical framework of the game theory model. It
begins with an introduction to the “Social Identity Approach”, embedding it into the historical
context to show its important contribution to social psychology. The overall theory was not
developed all at once, but consecutively in two partial theoretical stages. The present thesis
will therefore concentrate first on the “Social Identity Theory” followed by the “Self
Categorization Theory”, both of which are then critically evaluated in order to outline the
capabilities and weaknesses of the overall approach. It will be shown that the “social context”
is one of the most important elements and is crucial to the interpretation of behavior.
Accordingly, identification is defined as driving the internalization of behavioral prescriptions
which can be incorporated in the various utility functions of game theory models. Finally, the
thesis will elaborate on the contribution of SIA to the understanding of behavioral patterns
during organizational change. Chapter 2 will next give an introduction to M&A as a specific
form of organizational change by reviewing motivation and realization in practice. Besides
numerous possible reasons for success and failure, changes in the social identity of the
2
employees concerned will be discussed as a key driver of failure rates. This proposal has
been elaborated particularly over the past several years, approaching M&A from the
perspective of SIA. After this, the second chapter will focus on the research stream that deals
with motivation in an organizational context. The respective chapter will first look at the
motivational problem as a fundamental element of the organizational problem. The
appropriate design of incentive systems is critical to solving the motivational problem. This
chapter of the thesis will concentrate on the set-up of competition that allows the combination
of extrinsic and intrinsic motivation elements. Given a suitable incentive system, any
company will benefit from employees who are willing to compete with one another in order to
gain promotion and increase their influence. It can be assumed that certain companies are
especially interested in highly motivated performers and will give preference to individuals
who regard their career ambitions as part of their social identity.
After elaborating the theoretical framework, chapter 3 will present a review of the existing
game theory literature focusing on competition theory and identity economics, especially
works that have been published since the end of the last century. An overview of this
literature will indicate that, despite the variety of research aspects, there remains scope for
an identity-driven contest model with endogenous entry options. After this chapter 3 will
present the model itself in two separate stages. The first stage outlines a basic model that
analyzes identity-based behavior within the principal-multi-agent framework of a single
organization, with parameters usually defined by the principal for her organization. The
results of the basic model will be discussed primarily in an organizational context.
The second stage extends the basic model into a group contest framework where certain
parameters have been changed from the basic model in order to demonstrate the extent to
which an organizational change directly impacts the surroundings of the employees
concerned. Other than in the basic model, the principal can distort the group contest to a
greater or lesser extent. This element has been carved out especially for M&A as a form of
organizational change. As already stated in the introduction to this thesis, the model
presented is not only an interesting contribution to the contest literature, but it also allows the
description of behavioral patterns during M&A that result in the empirically high failure rates
of such transactions. This will be illustrated by applying the model to M&A. Although there
are many other entrepreneurial situations that might be analyzed with the extended model,
the interpretation of its results will be discussed in the light of SIA findings in today’s M&A
research streams. The implications of the extended model give rise to several
recommendations for M&A management in practice.
However, since the overall model is based on several assumptions, the thesis will close in
chapter 4 with a critical evaluation highlighting both the model’s capabilities and its limitations
that might be the subject of further research. The model contributes to the research literature
in two different ways. On one hand it provides an important extension to the existing contest
3
literature as it introduces the decision whether or not to invest in competitive behavior as
being dependent on each agent’s identity or social context. On the other hand its application
to organizational change allows the description of certain behavioral patterns that are of
tremendous importance to the success of M&A. The model’s framework and results are quite
intuitive, enabling recommendations for managerial practice to be derived from them.
4
2 Identity and Competition in an Organizational Context
2.1 Social Identity Approach
As already emphasized in the introduction to this thesis, the model presented is based
primarily on the structure of the economic identity models developed by Akerlof and Kranton.
Their prototype model provides the structure of a contest model resulting in an overall
framework within which to focus on the behavior of people who regard competitive behavior
as part of their self-concept. In their models Akerlof and Kranton refer to the work of Tajfel
and Turner, known as the “Social Identity Approach”. Since this research stream forms an
integral part of the model presented as well as being key to the evaluation of M&A success
factors, the following chapter provides a comprehensive summary of its most important
elements.
2.1.1 Historical Context

The “Social Identity Approach” (SIA) was developed by Tajfel and Turner in the early 1970s
as part of their research on inter-group processes. Tajfel’s research was strongly influenced
by impressions of the Holocaust as he tried to re-unite children from concentration camps
with their families in the early post-war years. At that time, social psychology was dominated
by the question of how group membership leads to violence and what sanctions are possible.
Before SIA was developed, social psychology mainly took an individualistic view that
considered social behavior to be “either the aggregation of individual states or inter-individual
actions.”3 Although studies focusing on the manipulation of inter-group relations by grouping
people in such a way as to generate hostility were already being carried out as early as the
1950s, Tajfel and Turner were the first researchers to focus specifically on the conditions
underlying such transformations. The conclusion they drew from their studies was that
people’s self-concept and motivation were based on their sense of identity. People’s
behavior was no longer seen to be determined only by their profession, it also differed
depending whether the person was a man or a woman.4 Insistence on the social context is
one of the most important elements used in SIA to explain socio-psychological processes. As
discussed later, this is the element to which Akerlof and Kranton refer when they enhance
economic utility functions with identity-driven aspects.
As elucidated in the above paragraph, Tajfel and Turner defined a fundamental new
approach to social psychology and indeed the “SIA is, by now, probably the dominant way of
addressing group processes in psychology.” 5 Their theory has been applied to many types of
3
Reicher S. et al., 2010, 46
4
Cf. Reicher S. et al., 2010, 46 f.
5
5
S. Burchhardt, Competition with Identity Driven Entry, Management, Organisation und ökonomische
Analyse 17, DOI 10.1007/978-3-658-10146-6_2, © Springer Fachmedien Wiesbaden 2015
groups, as it provides a powerful and long-range framework. However, a long-range
approach risks being cited to explain almost everything in social psychology. 6 Aware of such
tendencies, Reicher, Spears and Haslam in 2010 published a comprehensive summary
accentuating the tenets of SIA and differentiating it from other theories. “Most importantly, the
SIA seeks to address how psychological processes interact with social and political
processes in the explanation of human social behavior. It seeks to work with, rather than to
supplant, other disciplines and accepts that much of the explanation of action is not
psychological at all.”7
The SIA as it is known in the research literature, describes a family of socio-psychological
theories and comprises both the “Social Identity Theory” and the “Self Categorization
Theory”. An introduction to both of these theories will be given in the following chapters.
2.1.2 Social Identity Theory
2.1.2.1 Self-Concept and Social Identity
The “Social Identity Theory” (SIT) was the first of the two above-mentioned SIA approaches
and was developed by Tajfel in 1971 after completion of his “minimal group studies”, which
are among the most famous of all socio-psychological studies.
In these studies, Tajfel divided schoolboys into separate groups and asked them to distribute
rewards among the various individuals. Although there was no former relationship between
the boys, the mere knowledge of belonging to one of the groups led to a tendency among the
participants to prefer members of their own group. One of the most provocative findings was
that simply dividing people into different groups can lead to antagonism. Based on his
findings, Tajfel concluded that behavior is dependent on people’s self-definition with regard
to their social membership. “We can only understand why allocation to ostensibly
meaningless groups should affect behavior if we start by assuming that people come to
define their selves in terms of group membership.” 8 This means that the membership itself
has a certain value within the self-definition of an individual. If membership becomes a
“distinguishing feature” it has certain consequences. Tajfel defines these consequences as
“Social Identity”9 and thus as that part of the self-concept that results from the knowledge that
one is a member of a specific social group and from the value and emotional meaning
associated with this membership.10
6
7
8
9
Tajfel admits that this definition is very limited and that “Social Identity” describes only part of the person’s self-
concept and is far less complex. “Social Identity” is only an “abbreviation” used for analyzing limited aspects of the
self-concept that are relevant when describing social behavior. Nevertheless, it fully meets his needs, as he
focuses mainly on social circumstances and not on the analysis of complete individual personalities.
10
Cf. Tajfel H., 1982, 102
6
“Social identity theory (…) is a general social psychological theory of group processes and
intergroup relations that addresses the social self; that is, the component of the self-concept
referred to as social identity that derives from memberships in social groups and social
categories, and contrasts with one’s personal identity, which reflects one’s characteristics as
a unique individual.”11 This quotation illustrates first that SIT examines the dialectical
relationship between an employee’s self-concept and his or her behavior within the
organization, and secondly it shows that there has to be a clear distinction between self-
concept and social identity. Self-concept as a hermeneutic structure conveys how human
beings feel and act in a certain social context.12 It includes all kinds of self-descriptions and
evaluations of which an individual might be aware, and “may be composed of a variety of
identities, each of which evolves from membership in different social groups, such as a social
group based on race, gender, or tenure.”13
Although there might be an understanding that “Social Identity” focuses strongly on the social
aspects of someone’s self-concept, it must be emphasized that it is at once both individual
and social. This means that society influences an individual. 14 A person’s utility may hence
be driven by the evaluation of components relating only to that individual, and of components
that are defined by a certain membership. Akerlof and Kranton’s economic identity models
are in line with this concept. Their utility functions on the one hand include economic
variables and on the other hand illustrate the intensity to which the behavioral rules of a
certain social category have been internalized by a certain individual.
As already stated above, “Social Identity” describes that part of a person’s self-concept that
is linked to a certain group membership. While the current chapter intends to introduce and
clearly distinguish that term, the next chapter will focus on the process by which “Social
Identity” leads to identification and group-specific behavior.
2.1.2.2 Social Comparison and Group Differentiation
As early as the 1950s, the research community postulated that any individual will normally
seek to improve his or her self-concept and will therefore compare him- or herself with other
individuals. However, this research stream (Theory of Social Comparison) focused mainly on
a comparison of several individuals. Tajfel (1982) emphasized that focusing on an individual
ignores an important aspect of self-definition, namely the membership of one or more social
groups. He defines a group as “social entity” that has a certain meaning for a person over a
specific period of time, which is a clear differentiation from the definition of a group as a
network of relationships. However, the evaluation of a group membership can only be
11
Terry D.J. / Callan V.J., 1998, 68
12
Cf. Dutton J.E. et al., 1994, 242
13
Dutton J.E. et al., 1994, 242
14
Cf. Reicher S. et al., 2010, 48
7
derived for an individual through social comparison with other groups. “Who we are is partly
defined by reference to who we are not. (…) We will seek positive group distinctiveness
through differentiation between social groups along valued dimensions of comparison.” 15 The
term “valued dimensions” clarifies that there are no fixed arguments that are common to all
kinds of social comparison. Rather, the specific behavioral outcomes can only be understood
in the light of the specific value system underlying a certain group.
Numerous discussions of SIT have led to a strong focus on differentiation and its meaning for
a person’s self-esteem. The “self-esteem hypothesis” investigates whether positive
differentiation from others leads to increased self-esteem. A person who identifies with a
group will aim to improve the status of that group compared to others. “In an organizational
context, this means that, for example, the stronger an employee’s identification with the
organization, the stronger the employee’s motivation to make the organization superior to
competitors or, more generally, to improve the organization’s status. This motivation should
translate into better work performance.”16
Another conclusion of this hypothesis, however, is that people who belong to a low-valued
group will have to differentiate themselves more clearly from others in order to increase their
self-esteem. Without trying to challenge this conclusion, it considers the membership of a
certain group to be something that is difficult to change. It thus seems that the only remaining
option is to increase self-esteem by stronger differentiation. In reality, however, there are
negatively valued groups where differentiation would not result in a markedly increased
reevaluation. Tajfel’s and Turner’s research was influenced by the social upheavals in the US
during the 1960s and 1970s and therefore focuses on low-status groups. This explains why
Tajfel and Turner were seeking further strategies of low-status groups and the dynamics
leading to a change of the social world. This goes beyond the above-mentioned “self-esteem
hypothesis”, as it mainly considers “redefinition” of the current membership but not the
possibility of actively changing the surroundings.17 The mechanism or relation between a
person and their group can be summarized as follows.
First it can be assumed that a person tends to become a member of those groups that
contribute positively to his or her social identity. If a group does not satisfy these needs, the
person will tend to leave the group, which is called the strategy of “social mobility or exit.” 18 If
it is not possible simply to leave the group, individuals will either change their interpretation of
the group-specific attributes in order to reach a more positive result, or they will join and try to
change the group. Last but not least it should be pointed out that no group exists as a stand-
15
16
Riketta, M. / Landerer, A., 2005, 194
17
Cf. Reicher S. et al., 2010, 48 ff.
18
8
alone entity, and therefore all the above consequences are always evaluated by direct
comparison with other groups.19
As stated earlier, SIT was the first partial theoretical approach to be developed within SIA.
The present chapter sets out to demonstrate that SIT is indeed a broad approach that
addresses many aspects of group-specific behavior. It also has limitations, however, and it
was to address these that the “Self Categorization Theory” was later developed. Before
examining SCT more closely, the following chapter will first elaborate on the most important
limitations of SIT in order to link its solutions to SCT.
2.1.2.3 Critical Evaluation of the “Social Identity Theory”

As already mentioned in the historical classification of SIA, Tajfel’s and Turner’s approach
was new to the extent that it considered identity to be the central point of a person’s self-
concept. It defines a bridge between the individual’s self and his or her social surroundings.
“In contrast to Freudian and other attempts to use identification as a means of explaining
human sociality, the social nature of the bond is primary rather than secondary. That is, we
do not identify with others through our common link to a leader. Rather, we are bound
together through our joint sense of belonging to the same category.” 20 The internalization of
behavioral prescriptions – to such an extent that a person’s behavior conforms to group-
specific values and rules – is driven by identification. Akerlof and Kranton consider
identification to be the most critical component of any internalization process and incorporate
this in their prototype model through the variables of identity utility and externalities. 21 Once
social and identity components become part of a person’s utility they also become subject to
rationalization. An agent as a rational actor not only maximizes her utility based on the needs
of her individual self, but also has to consider those parts of her utility that are linked to a
collective self.
The argumentation has so far shown that SIA raises a number of interesting topics. It was
with these topics in mind that Akerlof and Kranton developed their prototype model for
economics and identity, a tremendous contribution to the field of economic research.
Although the importance of SIT within SIA is given unambiguously it fails to provide an
answer to the questions it raises. SIT sets an agenda for defining what must be analyzed in
order to gain an understanding of group-dynamic processes, but it does not further elaborate
the conditions that are necessary in order for these processes to occur. It rests on the
“assumption that social change occurs when people mobilize together on the basis of shared
social identity rather than acting separately on the basis of their various personal identities.” 22
19
CF. Tajfel H., 1982, 103 f.
20
21
Cf. Akerlof, G. / Kranton, R., 2000, 728
22
9
However, it fails to explain how shared identity makes people act jointly in pursuit of a certain
target.
2.1.3 Self-Categorization Theory
2.1.3.1 Groups as Social Categories
As explained in the foregoing chapter, SCT was developed to address the limitations of SIT.
Since SIT fails to explain which circumstances might lead to social change, SCT focuses on
the matching of someone’s social identity with his or her self-concept. By analyzing the
conditions that make someone act in a certain way, SCT links inter-group relations to group
behavior. According to Turner, the self is always embedded in social relations but with
different levels of abstraction. A person may compare him- or herself with other individuals
(personal identity) on the one hand, but see themselves as a member of a certain group as
opposed to other groups (social identity) on the other. “Self-categorization theory argues that
there is, that we need to distinguish between the personal and social identity as two different
levels of self-categorization, which are equally valid and authentic expressions of the
psychological process of self.” 23
The above argumentation makes it necessary to understand the process that causes an
individual to detect certain social groups in the specific environment. “SCT, in contrast to
previous models which see groups as constituted by the aggregation of interpersonal bonds
between individuals, defines the groups in cognitive terms.”24 In this context social
categorization describes the process of consolidating those objects and occurrences of a
group that an individual sees as equivalent to his or her own evaluation system. Due to the
fact that the socialization process collects equivalents within an evaluation system, it
transfers the overall value to the membership of this specific group. Social categorization
thus becomes an orientation system whose purpose is to define the distinct place of an
individual within a society. 25 Accordingly, a psychological group is not constituted in
interpersonal bonds or interactions, as these can be considered the consequences of self-
categorization.
Given that someone considers him- or herself to be a member of a certain social category,
the question arises as to how this awareness influences the individual’s self-perception.
According to SCT, self-categorization leads to depersonalization, which means that individual
identity is increasingly eclipsed. “When acting in terms of individual identity, we view
ourselves in terms of our individual characteristics. When acting in terms of social identity we
23
Turner J. et al., 1994, 454
24
25
CF. Tajfel H., 1982, 106
10
view people in terms of their group membership.” 26 Members of the same group will consider
themselves to be similar and will tend to agree with each other more than with members of
another group. Every individual tries to conform to the behavioral prescription of his group.
Reicher, Spears and Haslam describe this as the “process of stereotyping”. The observed
behavior of group members is interpreted and justified in the light of their social category. It is
important to emphasize that someone’s beliefs have to be very similar to those of other
group members and thus are always compared and evaluated in that light.27
2.1.3.2 Classification of Social Categories
The last chapter focused on the definition of social categories as “critical determinants of
social behavior.”28 Nevertheless there remains the interesting question of why people tend to
organize their social environment into groups and how these groups are identified and
classified.
The traditional view answers this question with the need to simplify information from the
social environment. The plethora of information that constitutes the social world is far too
complex to be processed with the limited capacity of the human brain. People are therefore
seen as groups rather than as separate individuals.
Unlike the traditional view, SCT represents a very functional point of view. In SCT, social
categorization reflects social reality. This means that people classify themselves and others
into groups because this reflects the real world. If the classification of social categories is to
reflect the real social environment, the categories need to be detectable. Reicher, Spears
and Haslam define this requirement as “category salience” which is to be determined by the
mechanisms of comparative and normative fit.
Comparative fit is the term given to classification based on perceived differences and
similarities between people. It “refers to the social organization of similarities and differences
between people in a given context. We apply those categories which minimize intra-class
differences compared to inter-class differences.”29 It is important to point out that social
categories need not be unalterable; different categories may become salient depending on
changes in the respective context. Reicher, Spears and Haslam explain this, using the
example of a group of social psychologists who are asked to categorize themselves. With no
other people present, they would probably classify themselves according to the various
disciplines within social psychology. In a mixed group with business graduates, however,
they would be more likely to classify themselves collectively as academics.
26
27
28
29
11
Normative fit is the term given to the observable behavioral patterns that are linked to certain
categories. This means, in the light of the example above, that people who are obviously
concerned about the profitability of certain activities tend to be perceived as businessmen.30
Once again, it must be emphasized that there are many kinds of differences which are not
fixed and can change over the course of time. “There is no pre-defined, universal identity in
terms of which a person will define themselves (…). As the world varies, so does category
salience.”31 This fact is also of importance to the model developed in the present thesis.
2.1.3.3 Perceived Relative Deprivation
The relevance of all group-specific characteristics is derived from comparison with other
groups. This process may result in a perceived shortage which is called “relative deprivation”
in accordance with the idea of social comparison.32
Although the concept of “relative deprivation” was defined by socio-psychological
researchers, it can be also used in economics for the analysis of social processes and
movements.
Relative deprivation is important to the extent that it creates a desire to act in order to change
something. The need to act may be perceived by a single person or it may be perceived in a
similar way by many members of a group. In this case, it forces the group to act collectively.
Under this argumentation, relative deprivation can appear in different ranges. Tajfel makes
reference to Ted Robert Gurr33 when he states that these ranges should be understood as a
continuum. The “non-occurrence of expectations” can be perceived as a deficit in a personal
or an interpersonal sense. If the deficit is perceived in a personal sense, this results from
comparing current conditions with previous individual conditions, while interpersonal
perception follows from a comparison with the conditions of other individuals. Based on the
two dimensions described above, the continuum of relative deprivation can be anchored to
the following three reference points.
30
31
32
CF. Tajfel H., 1982, 108
33
Ted Robert Gurr researched into the phenomenon of collective violence and rebellion and defined the range of
deprivation as a continuum.
12
Continuum of Relative Deprivation
Individual Group
inter-personal inter-personal inter-group

and intra-group and intra-group related relative
related relative related relative deprivation
deprivation deprivation with impact on
with starting inter-group-
impact on behavior
inter-group
behavior
Figure 1: Continuum of Relative Deprivation (CF. Tajfel H., 1982, 110 ff.)
The individual section of the continuum can be defined as the inter-personal and intra-group
related relative deprivation that is linked to the individual part of the Social Comparison
Theory. An individual acting at this end of the continuum perceives the deficit only from
comparing his or her own conditions with those of others who are members of the same
group. That person’s behavior thus covers only a very limited range of the environment, such
as problems with one’s spouse and any possible reactions.
The middle section of the continuum is still defined as inter-personal and intra-group related
relative deprivation, but it can already be applied as an independent variable for inter-group
behavior. This means that in certain circumstances, perceived deprivation based on an intra-
group related comparison may already result in inter-group related behavior. This
comparison is more likely to be made with individuals in the person’s own group than with the
members of another group. Tajfel emphasizes that especially the middle section of the
continuum defined by Gurr raises the question of how intra-group social comparison can
produce antagonistic behavior towards other groups. With reference to Tajfel’s remarks,
many researchers have attempted to answer this question on the basis of various theories,
but it is very difficult to prove this section of the continuum empirically.
The last section of the continuum points at the relationship between inter-group related social
comparison and inter-group behavior. Unlike the middle section of the continuum, there is
13
sufficient relevant empirical research to allow adequate analysis of any possible correlations.
If a group is conscious of sharing a common goal, the ambitions of single members become
less oriented towards individual targets (e.g. success) and more towards the development of
political ideologies. The interesting question is how social comparisons between groups can
affect inter-group behavior. Tajfel’s point of view is that comparison between groups requires
these to be significantly different and thus capable of being clearly distinguished from one
another. He cites Durkheim, who said that social order requires people to be satisfied with
their fortune and, even more important, to be convinced that they do not deserve anything
more. This means again that perceived deprivation must be regarded as legitimate based on
the relationship between the groups concerned. The collapse of an established and
legitimized inter-group system can result in problematic inter-group behavior.34
As already stated, the research of Ted Robert Gurr focused on the phenomenon of collective
violence. Nevertheless, the hypotheses build by Tajfel on this research stream can be
reliably transferred to economic and organizational issues.
2.1.3.4 Critical Evaluation of “Self Categorization Theory”

As already mentioned in chapter 2.1.2.2, SCT was developed to address the limitations of
SIT. SGT and SIT should not therefore be seen as adversarial, but as complementary.
“While SIT introduces the concept of social identity in the context of an analysis of intergroup
relations, SCT clarifies the concept and its relationship to other levels of identity.” 35
The fundamental contribution of SCT to social psychology was to define self-categorization
as a cognitive act. This attempts to explain how specific attributes of a social category
become part of individual behavioral patterns and make for a better understanding of the
development of group phenomena. One of the main postulations of SCT is that, in order to
understand the behavior of an individual within a group, it is essential to understand the
group itself first. It is impossible to project individual behavior onto the attributes of the social
group to which the individual belongs. SCT enforces the social-psychological interpretation of
any self-concept. At the same time the accentuation of social categories being the result of a
cognitive act constitutes the main point of criticism regarding SCT. Brackwede (1988) argues
that the self-concept theoretically includes not only self-referred cognitions but also
evaluations that could be affective and emotional as well. Accordingly, the focus on pure
cognition describes only a partial view of the self-concept. Reicher et al. (2010) argue,
however, that those who criticize the focus on cognition are confusing the starting point with
the end point of the theory. In reality the social environment is organized in categories whose
cognition is essential to the understanding of group processes. However, cognition is not all
34
CF. Tajfel H., 1982, 110 ff.
35
14
there is. “While SCT makes the cognitive act of self-categorization the starting point for
understanding group process it certainly does not suggest that cognition is all there is.
Clearly a full understanding of the group must account for the importance that groups have
for us and the passions that they invoke.”36
Finally, SCT must not be regarded as a self-contained research stream. It cannot be
captured in isolated hypotheses that can be discussed independently of each other. Its main
function is to provide a general framework that can be seen as an agenda for further
research.37
SIA has meanwhile become the basis of many other closely related research streams.
Research on “Organizational Change” is only one example. However, since the present
thesis will also introduce an extended model that could be advantageously applied to
organizational change, the next chapter will focus on the respective theoretical framework.
2.1.4 Organizational Change
2.1.4.1 Organizational Identity and Identification
Although SIA was not developed to focus solely on organizational science, it can be applied
in this context because organizations can be defined as groups that exist within a network of
intergroup relations.38
Hogg and Terry (2000) specifically transfer the SIT and SCT processes into an
organizational context in order to address certain organizational phenomena. They “consider
organizations to be groups, units or divisions within organizations to be groups, professions
or socio-demographic categories that are distributed across organizations to be groups, and
so forth – all with different social identities and group prototypes. Thus intergroup relations
can exist between organizations, between units or divisions within an organization, between
professions that are within but transcend organizations, and so forth.”39 As stated earlier,
self-categorization goes hand in hand with depersonalization, which means that in a certain
context group members are no longer represented by individual attributes, but rather by
stereotyped, group-specific characteristics. According to Hogg and Terry, these
representations appear in the form of prototypes that are not “typically checklists of attributes
but, rather, fuzzy sets that capture the context-dependent features of group membership,
often in the form of representations of exemplary members (…) or ideal types.” 40 Prototypes
36
37
Cf. Reicher S. et al., 2010, 55 & Brackwede, D., 1988, 13 f.
38
Cf. Hogg M. A. / Terry D.J., 2000, 121
39
Hogg M. A. / Terry D.J., 2000, 122
40
Hogg M. A. / Terry D.J., 2000, 123
15
enable the distinction between different groups and their members, as they include the
optimum balance of inter- and intra-group differences.41
In order for these prototypes to be identified, there must be a distinct set of characteristics
that are specifically assigned to each group. When transferred into an organizational context,
this set of characteristics is defined as the image that people associate with an organization.
All attributes within this set that are considered central, distinctive and enduring can be
defined as “Organizational Identity” in accordance with the definition by Albert and Whetten
(1985).42 Conversely, the identification of a member with an organization itself can be
described as the degree of correlation between the attributes that are part of the individual’s
self-concept and those attributes that are assigned to a specific group. “When a person’s
self-concept contains the same attributes as those in the perceived organizational identity,
we define this cognitive connection as organizational identification. Organizational
identification is the degree to which a member defines him- or herself by the same attributes
that he or she believes define the organization.” 43
2.1.4.2 Foci of Identification
The foregoing chapter focuses on the formation of organizational identification in the light of
SIT and SCT. Nevertheless, it does not explain how far identification makes someone act for
the benefit of an organization. Van Dick, Wagner and Gautam in 2002 published an article
where they specifically addressed this question (among others) in combination with empirical
validations.
Based on the assumptions of SCT, they classified dimensions of identification according to
the salience of either personal or social identity. If someone’s personal identity prevails in a
certain context, his or her professional identification is expected to focus on his own
advancement. Conversely, if social identity is salient, identification is expected to be in line
with the organization or a particular division within the organization. Since SIA specifically
takes the context into consideration, van Dick, Wagner and Gautam define these contexts as
“foci of identification”.
Transferring this concept to specific behavior means that whenever the focus of identification
rests on personal aspects, a person’s behavior is mainly focused on their personal career.
When it relates to his or her social identity, however, the commitment is dedicated to the
professional group, leading to increased productivity, loyalty and extra-role behavior.44
41
Cf. Hogg M. A. / Terry D.J., 2000, 121 ff.
42
Cf. Scott S.G. / Lane V.R., 2000, 43 & Cf. Dutton J.E. et al., 1994, 240 & Cf. Margolis S.L. / Hanson C.D., 2002,
278 & Cf. Ravasi, D. / Schultz, M., 2006, 435
43
Dutton J.E. et al., 1994, 239
44
Cf. van Dick R. et al., 2002, 154 f.
16
2.1.4.3 Sustainability during Change
Change within the organizational environment is something that is likely to be familiar to

almost anyone involved in professional life. Since identification is essential to someone’s
performance within a company, the interesting question arises as to how far organizational
change might affect identification.
It is important to emphasize that identity, be it personal or social, is something that is socially
construed and derived from repeated interactions with others. Gioia, Schultz and Corley
(2000) argue along these lines that identity is inherently dynamic.45 Since social identity
needs repeated interactions with others in order to manifest itself, any change in the social
environment might affect and change social identity as well. The same relation applies to the
above discussed prototypes. As they cover a context-dependent representation of a certain
group, any modification to its context also affects the content of the prototypes – and this in
turn, according to Hogg and Terry, impacts the appearance of group phenomena such as
leadership.46 Since identification with an organization is defined as the correlation between
the attributes of the individual self-concept and those linked to the organizational identity, a
variance in the latter will obviously impact the person’s identification with the company.
Margolis and Hanson in 2002 published a model to facilitate the understanding of

organizational identity aspects during corporate change. They describe identity as being
essential to the perception of an organization and therefore as a “source of stability.” 47 To
analyze the impact of change, they first had to define different dimensions of an
organization’s identity that a member needs in order to understand the overall organization.
Margolis and Hanson found that only a few attributes are usually considered essential to the
organization. They defined these characteristics as “core attributes” that explain why the
organization exists. The respective attributes could be allocated to either of two categories,
“purpose” or “philosophy”. Purpose justifies the existence of a company, while philosophy
distinguishes it from other companies.
In addition to the core attributes, Margolis and Hanson identified characteristics that are not
perceived as central to an organization but contribute to a manifestation of its organizational
identity. They defined these characteristics as “application attributes”, consisting of priorities,
practices and projections. Priorities cover key values that are necessary to manifest the core
attributes. Practices include all the procedures necessary to keep the company competitive
within its environment while taking all attributes into account. Last but not least, projections
45
Cf. Gioia D.A. et al., 2000, 65
46
Cf. Hogg M. A. / Terry D.J., 2000, 124
47
Margolis S.L. / Hanson C.D., 2002, 277
17
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The Project Gutenberg eBook of And it was good
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you are located before using this eBook.
Title: And it was good
Author: A. Earley
Illustrator: Dan Adkins
Release date: November 11, 2023 [eBook #72092]
Language: English
Original publication: New York, NY: Ziff-Davis Publishing Company,

1962
Credits: Greg Weeks, Mary Meehan and the Online Distributed

Proofreading Team at http://www.pgdp.net
*** START OF THE PROJECT GUTENBERG EBOOK AND IT WAS

GOOD ***
And It Was Good
By A. EARLEY
Illustrated by ADKINS
A moving tale of a second chance

for man—and for his maker.
[Transcriber's Note: This etext was produced from

Amazing Stories February 1962.
Extensive research did not uncover any evidence that
the U.S. copyright on this publication was renewed.]
When she came back he looked at her and put down the piece of
wood which he had been carving.
He always carved in anxious moments. Many years before he had
been apprenticed to a carpenter. He still loved the smooth, creamy
feel and the warm tang of a good piece of wood. Usually he whittled
away at it until it suggested a design to work on. More often than not
it turned out to be a face, rugged peasant features with the simple
wisdom of age engraved on them, or the chubby whorls of a child
dimpled with delight. Today, he thought, it might make a tree heavy
with fruit and the crown of leaves.
"He's decided to do it, then"? he said, and she nodded without
looking at him. She did not want to see the pain in her son's eyes.
He got up and stood beside her and put his arm round her
shoulders.
"When"? he asked her softly, patiently.
"Right away".
"Did you ask him if he would let me go again instead"?
"I couldn't"! she said and pulled him to her. "I couldn't bear it again
after what they did to you last time".
"Am I any the worse for it"? he smiled at her. "Besides, it was a long
time ago and people have changed".
"You'd suffer and you'd be away for years", she said. "I couldn't go
through that. Not again".
"Is he very sad about it"? he asked.
"You know how he is when he has to do a thing like that", she said.
"He said you weren't to worry too much. I was to tell you he'd like to
talk to you about it later. He might want you to go there for a short
visit while it's on".
He went back to his whittling, but his mind was busy with other
things and the tree would not take shape.
Spring had been late before. As the Times pointed out, there had
been snow as late as mid-May in 1569 and at the end of April in
1782, yet the chronicles recorded bumper crops for both years.
Agricultural experts advised closer pruning of fruit trees to speed
budding, and an American firm of Artificial Fertilizer Manufacturers
brought out a new product called 'Shoot-boost'. But the
correspondence columns of the newspapers carried letters pointing
out that, while spring might have been late before, this time the
weather was entirely spring-like, yet still there was no sign of shoot,
blossom or bud. Excessive radiation resulting from nuclear tests was
blamed.
It was mid-May before the people and their governments became
seriously alarmed. Trees still stood bare as in the depth of winter,
lawns bore the bruising of last season's mowing but no new growth,
flower beds showed the unbroken rills of after-seed raking. Farmers
walked their fields day after day and crouched down to silhouette the
furrows against the sky, the better to see the green whiskers when
they sprouted. They prodded their heifers and ewes and went down
to the villages to consult the vet. Their wives searched the hen-
houses and put down extra grain and bricks of chalk.
The Pope's call to world-wide prayer and the British Government's
announcement of the introduction of rationing fell on the same day.
In most countries, the Pope's call found little response because the
people were too busy lining up at food stores trying to lay in stocks.
There were bread riots in Teheran.
Rumors of a cattle disease began to circulate several days before

official news of the full extent of the additional catastrophe was
released. That night, the British Prime Minister spoke on the BBC.
"With Her Majesty's consent," he said after reviewing the 'grave and
disquieting situation', "I have given instructions for all available ships
of the Royal Navy to put to sea immediately as an emergency fishing
fleet." Meanwhile, he continued, divers and frogmen were asked to
place their services at the disposal of the Ministry of Agriculture and
Fisheries. They would be required to "glean nourishment for the
nation from the laden larders of the deep." "Human ingenuity, skill
and tenacity will conquer yet," he concluded. The Prime Minister's
broadcast was followed by the announcement of emergency
regulations for the disposal of dead cattle.
On 16th June, the President of the United States informed an
Emergency Meeting of the General Assembly of the United Nations
that Professor Braunweiler of Columbia University had perfected a
method of extracting carbon sugar from wood. All suitable industrial
plants throughout America were to be geared to the mass-production
of the necessary equipment. The United States was prepared to
supply the whole world with this equipment and with power-operated
tree-felling implements on a lend-lease basis. Teams of instructors in
the use of the equipment would be available to proceed to all parts of
the world by the end of the month. The offer, which became known
as USASAW, (USA SUGAR AID TO THE WORLD), was accepted
with gratitude by all but the Soviet delegation.
Shortly after Sugar-Aid started, a Frenchman named Dr. Muller
discovered, (in desperation, vineyards stood barren), that tree-sugar
caused a fermentation in the still-plentiful needles of coniferous trees
which, when distilled, resulted in a drink rich in alcohol and vitamins.
He gave the drink the name 'BOIGNAC' in melancholy memory of
happier days. Within six weeks, France had a surplus in the World
Bank, and a French admiral was appointed to command the NATO
Mediterranean fleet. Undoubtedly, boignac helped; yet, by the end of
August, even that could not arrest the death rate.
On 3rd September, a Soviet Task Force landed troops and armor at

sixteen places along the East-African coast. Moscow Radio informed
the world that 'the glorious forces of the USSR have taken this step
under the personal command of Mr. Khrushchev to safeguard
Africa's rich resources in animal life against the depredations of the
Capitalist Warmongers'. Thus, the world was told, all peaceloving
peoples would be assured an equitable and adequate supply of meat
in the hard months to come.
At an Emergency Meeting of the NATO Council immediate counter-
measures were agreed upon, but it was decided to confine retaliation
to Africa and not to use nuclear weapons unless Russia did so first.
The 'British Left', which had come into being after the Labor Party
had split, withdrew from the House of Commons in protest, and the
workers of the largest motor works in Italy assembled outside their
long-closed factory to call for strike action.
By mid-December, the war in Africa had settled down to a stalemate.
There was a good deal of patrolling; the opposing armies 'lived off
the land', in other words on what game they could bag before the
other side got it. Food-finding became more important than fighting,
and hunger closed the eyes of higher command to the proximity of
the enemy, except of course when the enemy was engaged in
tracking the same game. Reports from the front recorded these
'patrol skirmishes', and gave account of the really violent artillery
duels. Loading and firing guns required less waning energy than
infantry slogging in the heavy country. The fact that the wide no-
man's-land between the opposing armies formed the main hunting-
ground exposed friend and foe to the same gunfire. Casualties were
consequently high. The Neutral Investigating Commission appointed
after much vetoing by the United Nations—it consisted of delegates
from Costa Rica, Kashmir and Monaco—found the situation rather
confusing and withdrew to Cannes to consider its findings.
Early in January, a British scientist invented a Very-High-Frequency
Lamp, regular exposure to which substituted a certain amount of the
energy normally absorbed in food. The equipment was fantastically
expensive to produce and was therefore available to very few
people. A portable, cheaper and far less efficient model was mass-
produced for the armed forces and essential workers. The dashing
victories in Africa, forecast by enthusiastic politicians as a certain
result of the new machine, did not however materialize. The new
energy induced in picked units was expended in a redoubled quest
for food. The papers reported increased patrol activity.
An agent planted by the Communists in the Ministry of Defense in
London succeeded in photographing the plans of the ray-lamp.
Within six weeks, a Russian version of the equipment reached the
Red forces in Africa. As a result, the stalemate became staler still.
Both sides began to lose control of their troops, which scattered over
wide areas of Africa well outside the zone of battle; game had
become scarce, and pursuit led both sides further and further afield.
On a swampy peninsula, formed by a hairpin bend of a crocodile-
infested river, a British and a French soldier had established their
laager. They had joined forces to hunt for edible snakes, and a few
hundred yards up-river one of them had trodden on a carelessly
buried anti-personnel mine. The soggy ground had prevented the
contraption from jumping as high as the designer had intended, and
the dense, though leafless undergrowth had screened them from the
worst of the blast.
They took it in turns to fetch water in their hats from the river and to
bathe each other's wounds. Starving and feverish, neither of them
knew for certain when the stranger joined them. He was not in
uniform; he spoke English and French so well that they both claimed
him for a fellow-countryman. He did not enlighten them, and they did
not persist in their questions. He insisted on nursing them and
waiting on them. He fetched water for them from the river, and he put
clay from the river bank on their septic wounds; he said it would heal
them. The Englishman was embarrassed to see that the stranger
had tears in his eyes while he did it. To pretend that he had not
noticed, the Tommy talked about the flipping bastards who strew
flipping mines all over the flipping place. The stranger smiled at that
and said he would try to get them some fish from the river. He was
away a long time, and when the Englishman crawled down to the
river to see what had happened, he saw the stranger on his knees
on the river bank. He wanted to shout that one could not catch
flipping fish that flipping way, but then he changed his mind and
crawled back to the Frenchman. The stranger turned up a little later
with his hat full of fine fish. He wanted to light a fire to cook them, but
the Frenchman pointed up to where shells from both sides were
hissing over them, and they ate the fish raw. It tasted wonderful.
The stranger settled down to stay with them and brought fish and
water as often as they felt hungry or thirsty. When he was not
otherwise engaged, he used one of their bayonets to whittle away at
pieces of wood. Their wounds were clearing up fast and did not hurt
any more. The Frenchman insisted on giving the stranger his
gascape to sleep in because he had nothing else, and the Tommy
pulled out his only spare pair of socks because the stranger's were
walked to shreds.
Sometimes the stranger left them for a few days, but he always
made sure that they had enough water and fish before he left. He
came back dusty and dirty and tired out, but he did not seem to need
much sleep. Once, when the Tommy woke in the middle of the night
and wanted a drink, he saw the stranger kneeling under a nearby
tree. Flipping shell-shock, probably. Poor bastard.
The Russian soldier stumbled into their laager one evening just as
they were getting ready for sleep. He dropped his rifle in his surprise
and then held his hands up high because the Frenchman was
groping for his bayonet. They stood for a while looking at each other
until the Frenchman put his weapon down and the Russian's arms
fell slowly to his sides. He watched them for a few minutes, then he
saw a fishtail lying on the ground and picked it up and began to
gnaw it. The Tommy glanced at his companions and crawled to the
hole in the rocks behind them where they kept their supplies and
gave the Russian a whole fish. The Russian grinned and took it, and
while he was eating it he sat down and gradually wriggled his way
closer to them. They showed him another fish and he said 'da' and
they gave it to him. "First time I knew a flipping Ivan could say yes
too," the Tommy said.
To their amazement, the stranger spoke to the Russian with the
same ease with which he spoke English and French.
The Russian spent the night with them, and in the morning, after
more fish, he wandered off. He came back dragging mounds of
branches with which he built a shelter for the wounded men under
one tree, and another one for the stranger. He grinned all over his
broad face, pointed to the fish, to them, to himself and to the
shelters. Then he shook hands all round.
That afternoon a Russian fighting patrol passed close by. The officer
heard their voices, crept up behind them and threw a hand grenade
among them. The stranger threw himself on top of it just as it went
off. The Englishman shot the officer through the head before the dust
and smoke had cleared, and the remainder of the patrol withdrew.
When they turned the stranger over, the ants were already swarming
in his blood. At first they tried to brush them off with twigs, but more
and more ants came. The Russian pointed to the river and gestured
that it would be kindest to throw the body in. The Frenchman shook
his head, and the Englishman started to drag the body to the hole in
the rocks. They laid the stranger inside and rolled a rock against the
entrance and sealed the gaps with clay.
They missed him a great deal. Not only because of the fish and
water.
Next day the Russian left them. Before going, he banged them on
the back and shook hands with them several times and tears left
streaks on his dirty face.
She was overjoyed to have her son back with her. She could not
stop looking at him for the sheer joy of it.
"Was it very terrible"? she asked.
"No", he smiled at her. "In a way it was wonderful".
"But the suffering and the killing", she said.
"I saw more than that", he said.
"Did you tell him all of it"? she asked.
"All of it". He picked up his knife and whittled away at the wood.
"And"? she insisted.
"He's angry, and sad. And at the same time he's pleased", he said,
and that was all he would tell her. But she felt comforted and she
knew it was going to be all right.
He shaved the last of the bark of the wood and looked at the grain
and set to work. This time it would be a child, with fat round cheeks
and the dimples of laughter in them.
THE END
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Textbook Competition With Identity Driven Entry A Principal Multi Agent Model On The Success of Mergers and Acquisitions 1St Edition Sebastian Burchhardt Auth Ebook All Chapter PDF

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Textbook Competition With Identity Driven Entry A Principal Multi Agent Model On The Success of Mergers and Acquisitions 1St Edition Sebastian Burchhardt Auth Ebook All Chapter PDF

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Competition with Identity Driven Entry

A Principal Multi Agent Model on the

The Principal Agent Model and the European Union 1st

Mergers and acquisitions basics the key steps of

Mergers and Acquisitions from A to Z Andrew J. Sherman

Mergers and Acquisitions Basics: The Key Steps of

Model-Driven Development and Operation of Multi-Cloud

Artificial Intelligence and Data Mining for Mergers and

Synergy Value and Strategic Management Inside the Black

Emerging Challenges in Mergers and Acquisitions 1st

Dissertation Wissenschaftliche Hochschule für Unternehmensführung (WHU) – Otto

Management, Organisation und ökonomische Analyse

Library of Congress Control Number: 2015940575

Printed on acid-free paper

Springer Gabler is a brand of Springer Fachmedien Wiesbaden

1.2 Structure of the Thesis ................................................................................................ 2

2 Identity and Competition in an Organizational Context ............................................... 5

2.1 Social Identity Approach .............................................................................................. 5

2.3 Motivation and Competition ....................................................................................... 39

3 The Model ........................................................................................................................ 61

3.2 Identity-Driven Contest with Endogenous Entry ....................................................... 72

4 Conclusion on the Model ............................................................................................. 108

4.1 Capabilities of the Model ......................................................................................... 108

4.2 Prospects for Future Research ............................................................................... 109

A. Appendix ........................................................................................................................ 111

A2 Optimal Choice of Activities and Proof of Proposition 2 ............................................... 114

A3 Optimal Choice of Social Category and Proof of Proposition 3 ................................... 116

A4 Optimal Contest Structure and Proof of Proposition 4 ................................................. 117

A6 Optimal Choice of Activities and Proof of Propositions 6 and 7 ................................... 125

A7 Optimal Choice of Social Category and Proof of Proposition 8 ................................... 130

A8 Proof of Proposition 9.................................................................................................... 133

B. Model variables ............................................................................................................. 135

B1 Basic Model ................................................................................................................... 135

B2 Extended Model ............................................................................................................ 135

CSF – Contest Success Function

1.2 Structure of the Thesis

2.1.1 Historical Context

2.1.2 Social Identity Theory

2.1.2.1 Self-Concept and Social Identity

2.1.2.2 Social Comparison and Group Differentiation

2.1.2.3 Critical Evaluation of the “Social Identity Theory”

2.1.3 Self-Categorization Theory

2.1.3.1 Groups as Social Categories

2.1.3.2 Classification of Social Categories

2.1.3.3 Perceived Relative Deprivation

inter-personal inter-personal inter-group

2.1.3.4 Critical Evaluation of “Self Categorization Theory”

2.1.4 Organizational Change

2.1.4.1 Organizational Identity and Identification

2.1.4.2 Foci of Identification

Change within the organizational environment is something that is likely to be familiar to

Margolis and Hanson in 2002 published a model to facilitate the understanding of

Title: And it was good

Illustrator: Dan Adkins

Release date: November 11, 2023 [eBook #72092]

Original publication: New York, NY: Ziff-Davis Publishing Company,

Credits: Greg Weeks, Mary Meehan and the Online Distributed

*** START OF THE PROJECT GUTENBERG EBOOK AND IT WAS

A moving tale of a second chance

[Transcriber's Note: This etext was produced from

Rumors of a cattle disease began to circulate several days before

On 3rd September, a Soviet Task Force landed troops and armor at

Creating the works from print editions not protected by U.S.