Silver Lining Effect: How to Present the Bad News

Hanover, MD — January 20, 2010 — Communicating "I have some good news and some bad news" is better than combining messages into a single, bleak result when small gains and large losses occur together, according to a study in a recent issue of Management Science, the flagship journal of the Institute for Operations Research and the Management Sciences (INFORMS).

"The Silver Lining Effect: Formal Analysis and Experiments" (subscription required) is by Peter Jarnebrant of the European School of Management and Technology and Olivier Toubia and Eric Johnson of Columbia University.