Publications

In this paper we introduce a new computationally tractable framework for Ericson and Pakes (1995)- style dynamic oligopoly models that overcomes the computational complexity involved in computing Markov perfect equilibrium (MPE). First, we define…

We show that firms’ individually optimal liquidity management results in socially inefficient boom-and-bust patterns. Financially constrained firms decide on the level of their liquid resources facing cash-flow shocks and time-varying investment…

Propensity score matching estimators (Rosenbaum and Rubin (1983)) are widely used in evaluation research to estimate average treatment effects. In this article, we derive the large sample distribution of propensity score matching estimators. Our…

I consider the monopolistic pricing of informational good. A buyer’s willingness to pay for information is from inferring the unknown payoffs of actions in decision-making. A monopolistic seller and the buyer each observes a private signal about…

Can innovation among micro-entrepreneurs in South Africa teach global corporations a lesson? Rajesh Chandy, Stephen Anderson-Macdonald and Bilal Zia reckon so.

The Legends in Consumer Behavior series captures the essence of the most important contributions made in the field of consumer behavior in the past several decades. It reproduces the seminal works of legends in the field, which are supplemented…

From 1980 to 2000, the rise in the US college/high school graduate wage gap coincided with increased geographic sorting as college graduates concentrated in high wage, high rent cities. This paper estimates a structural spatial equilibrium model…

Solar photovoltaic (PV) installations in the United States have been deployed at a rapid pace in recent years, a development that is attributed in significant part to the federal Investment Tax Credit (ITC). Yet, this credit is scheduled to step-…

Courts resolve individual disputes and create principles of law to justify their decisions and guide the resolution of future cases. Those tasks present informational challenges that affect the whole judicial process. Judges must simultaneously…

Polygeneration energy systems (PES) have the potential to provide a flexible, high-efficiency, and low-emissions alternative for power generation and chemical synthesis from fossil fuels. This study aims to assess the economic value of fossil-…

We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizeable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented substantial number…

We study a Bayesian persuasion game in the context of real options. The Sender (firm) chooses signals to reveal to the Receiver (regulator) each period but has no long-term commitment power. The Receiver chooses when to exercise the option,…

Among typical entrepreneurs, is serial entrepreneurship common? Is the serial entrepreneur more likely to succeed? If so, why? These questions are addressed using data on all establishments started between 1990 and 2011 to sell retail goods and…

Co-production (simultaneous production of multiple outputs) occurs in some emission-intensive basic material and agricultural industries. This paper is motivated by ones in which a supplier sells its primary product to a buyer that incurs an…

This paper examines the approaches accounting researchers use to draw causal inferences using observational (or non-experimental) data. The vast majority of accounting research papers draw causal inferences notwithstanding the well-known…

In a large-scale field experiment, we demonstrate that advertising can serve as a signal that enhances consumers’ evaluations of advertised goods. We implement the experiment on a mobile search platform that provides listings and reviews for an…

You’ve probably heard the expression “It’s not what you know, but who you know, that matters.” The sentiment is rather demotivating. After all, why go the extra mile if success is just determined by connections?

Recently, the Rock Center for Corporate Governance at Stanford University conducted a nationwide survey of 1,202 individuals — representative by gender, race, age, political affiliation, household income, and state residence — to understand…

Recently, Heidrick & Struggles and the Rock Center for…