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Ironic Effects of Prosocial Gossip in Driving Inaccurate Social Perceptions
Gossip is often stereotyped as a frivolous social activity, but in fact can be a powerful tool for discouraging selfishness and cheating. In economic games, gossip induces people to act more cooperatively, presumably to avoid the cost of accruing…
Letters of Recommendation as Institutionalized Gossip: Tie Strength and the Advocacy-Accuracy Tradeoff in Brokering
Gossip is both common and consequential. People often share reputational information about others in their absence, and this ubiquitous practice powerfully shapes impressions, interactions, and relationships among senders, receivers, and the…
Machine Learning Who to Nudge: Causal vs Predictive Targeting in a Field Experiment on Student Financial Aid Renewal
In many settings, interventions may be more effective for some individuals than others, so that targeting interventions may be beneficial. We analyze the value of targeting in the context of a large-scale field experiment with over 53,000 college…
Attitudes: Form, function, and the factors that shape them
Beyond the Event Window: Earnings Horizon and the Informativeness of Earnings Announcements
The impact of earnings announcements (EAs) on investor uncertainty depends not only on how much new information they contain but also on how long it would take comparable information to arrive in the future through alternative sources, which I…
Boosting Sales and Customer Welfare from Premade Foods (Let the Freshest Chicken Fly Off the Shelf First)
This paper examines a grocery retailer’s management of a premade food product. The retailer’s goal is to maximize a weighted sum of direct profit and customer welfare. Multiple items of the product are produced in batches, and immediately…
Can Activists Change Business for Good?
Dynamic Information Acquisition, Investment, and Disclosure
We present a dynamic model of information acquisition and disclosure. The manager seeks to maximize future stock prices and collects information privately about the firm’s fundamentals. Information acquisition increases the arrival rate of…
Earnings per Share Targets and CEO Incentives
We examine differences in CEOs’ achievement of earnings per share (EPS) targets related to (1) analysts’ forecasts and (2) internal cash bonus payouts. Our focus on firms with different benchmarks for the same performance metric…
Electronic Health Record Use Patterns Among Well-Being Survey Responders and Nonresponders: Longitudinal Observational Study
Physician surveys provide indispensable insights into physician experience, but the question of whether responders are representative can limit confidence in conclusions. Ubiquitously collected electronic health record (EHR) use data may improve…
Geoeconomic Pressure
Geoeconomic pressure—the use of existing economic relationships by governments to achieve geopolitical or economic goals—is a prominent feature of global power dynamics. This paper introduces a methodology using large language models (LLMs) to…
How AI sources can increase openness to opposing views
Exposure to counterattitudinal information has been shown to yield mixed effects on attitude polarization. The current research explores the differential impact of such information when generated by artificial intelligence (AI) versus human…
Increase versus decrease framing: How framing a finding as an increase boosts its perceived magnitude
Researchers often present their findings as increases or decreases. For example, a researcher might conclude that X increases Y or that X decreases Y. Even describing an equivalent outcome, a researcher might frame that…
LLM-Generated Messages Can Persuade Humans on Policy Issues
The emergence of large language models (LLMs) has made it possible for generative artificial intelligence (AI) to tackle many higher-order cognitive tasks, with critical implications for industry, government, and labor markets. Here, we…
Losing is Optional: Retail Option Trading and Expected Announcement Volatility
Nonrecursive Dynamic Incentives: A Rate of Convergence Approach
In repeated principal-agent problems and games, more outcomes are implementable when performance signals are privately observed by a principal or mediator with commitment power than when the same signals are publicly observed and form the basis…
On the Power of Delayed Flexibility: Balls, Bins, and a Few Opaque Promotions
Effective load balancing lies at the heart of many applications in operations. Frequently tackled via the balls-into-bins paradigm, seminal results established the power of two choices in load balancing: a limited amount of costly flexibility…
Optimizing Animation Speed: Convex Effects on Perceived Waiting Time and Digital Customer Experience
Incidental waits are an unavoidable element of the consumer experience on any digital platform. Firms typically utilize no animation or single-speed, repeated animations during these waits. How might the use of such animations and their visual…
Policy Brief: Generative Artificial Intelligence: Opportunities for the Future of Work in Chile
We study the impact of Generative Artificial Intelligence (GenAI) in Chile, focusing on opportunities for task acceleration-specifically, the reduction of execution time for tasks within the hundred most common jobs in the country, corresponding…
Power as a Moral Magnifier: Moral Outrage is Amplified when the Powerful Transgress
Moral outrage in response to scandals involving powerful figures has become commonplace in modern life. These instances suggest that moral outrage may be disproportionately directed upward toward those with power over others. However, it remains…