Economics

STANFORD GRADUATE SCHOOL OF BUSINESS—Stock options have become commonplace additions to compensation packages in recent years. Yet, the experts say stock options are lousy incentive mechanisms for motivating rank-and-file employees at the largest companies to work hard. Consider, for example, an...
STANFORD GRADUATE SCHOOL OF BUSINESS—As more and more people are putting their money into the care of professionals, it's time to ask if the people investing your money are properly motivated—that is, if they are given incentives to make the right decisions when they construct portfolios composed...
STANFORD GRADUATE SCHOOL OF BUSINESS—IN THE LAST 25 YEARS, many and perhaps most significant innovations in economics have been driven by the use of game theory, which provides economists with a language and analytical tools to study many economic interactions that older tools, such as price...
STANFORD GRADUATE SCHOOL OF BUSINESS—Paul Oyer backs away from using the word "luck." But nevertheless his research shows that many young MBAs who go into investment banking might just follow that career due to happenstance as much as because of a die-hard allegiance to Wall Street. And those who...
STANFORD GRADUATE SCHOOL OF BUSINESS—Each week millions of readers look at the New York Times bestseller list to see what everybody else in the country is reading. And as soon as a title hits the list, booksellers typically push the book to the front of the store and slash its price by as much as...
STANFORD GRADUATE SCHOOL OF BUSINESS—Most Broadway plays charge a startling variety of prices for tickets. That person sitting next to you in the back of the orchestra might have paid a premium by ordering over the phone—or stood on line at a discount ticket booth and forked over half of what you...
STANFORD GRADUATE SCHOOL OF BUSINESS—Marketing has always been the voice of the customer--a conduit through which the rest of the company can hear the wishes of its customers. With the Internet, the voice of the customer becomes a shout, says GSB faculty member Ward Hanson. Early online marketing...
Your grandmother’s habit of hoarding pennies in a jar notwithstanding, until now there’s been no hard evidence that economic events like the Great Depression actually change investment behavior. A study by Stefan Nagel and Ulrike Malmendier, however, stands conventional economic wisdom on its head...
STANFORD GRADUATE SCHOOL OF BUSINESS—Saving for retirement is hard enough. It turns out, though, that spending intelligently during retirement is difficult as well. The soon-to-be-retired person has to make a range of decisions about spending that will have real consequences for as long as he or...
STANFORD GRADUATE SCHOOL OF BUSINESS—Those who work in the most complex manufacturing environments have the most to gain from the use of problem-solving teams, according to a recently published study. As the United States concentrates its manufacturing base, workers are more likely to be...

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