Publications

Consumers face many options that are presented to them as bargains, but in reality, they only subjectively construe a fraction of them as valuable. The authors propose that consumers are particularly attracted to offers they perceive as more…

We discuss “Mandatory IFRS Reporting and Changes in Enforcement” by Christensen, Hail, and Leuz (CHL, in this issue). We begin by discussing CHL in the context of prior literature, and subsequently discuss the research design, results, and…

There is overwhelming evidence for regional variation across the United States on a range of key political, economic, social, and health indicators. However, a substantial body of research suggests that activities in each of these domains are…

We develop a model for studying dynamic competition in environments with frictions that lead to partial lock-in of customers to products. The dynamic aspects associated with customer retention and acquisition introduce pricing incentives that do…

This article argues that the structure of a choice set can influence the extent to which consumers weight a given attribute. The results of seven experiments suggest that the relationship between options under consideration can influence…

This study examines the effects of shareholder support for equity compensation plans on subsequent CEO compensation. Using cross-sectional regression, instrumental variable, and regression discontinuity research designs, we find little evidence…

The current research explores how the structure of a goal, more specifically whether its completion requires completing a set of actions in a fixed sequence or in a flexible order, influences consumers’ decision to adopt the goal and how…

Changes in the values and careers of particularly younger employees and changes in organizations, including the reduction of hierarchical levels and greater use of teams and matrix structures — combined with new communication technologies and…

This paper constructs an efficient, budget-balanced, Bayesian incentive-compatible mechanism for a general dynamic environment with quasi linear payoffs in which agents observe private information and decisions are made over countably many…

We discuss “Mandatory IFRS Reporting and Changes in Enforcement” by Christensen, Hail, and Leuz (CHL, 2013). We begin by discussing CHL in the context of prior literature, and subsequently discuss the research design, results, and inferences. CHL…

Anat Admati argues that the banking system is too fragile and inefficient, and that reform efforts have been flawed. The fragility of the system causes booms and busts, and busts lead to bailouts when authorities fear the alternatives are worse.…

Nike’s approach to managing supplier responsibility has greatly evolved since the 1990s, when the media uncovered claims of child labor, underpaid workers, and poor working conditions in several Asian countries. This report explores how Nike’s…

This paper examines the economic consequences associated with the board of director’s choice of whether to adhere to proxy advisory firm policies in the design of stock option repricing programs. Proxy advisors provide research and voting…

Despite multinational firms’ continued investments in factory audits and other practices aimed at tackling social and environmental issues in their supply chains, lapses in employee labor standards, health and safety standards and environmental…

We test for a ‘hot hand’ (i.e., short-term streakiness in performance) in Major League Baseball using panel data. We find strong evidence for its existence in all ten statistical categories we consider. The magnitudes are significant; being…

In 3 experiments using 2 different paradigms, people were less likely to cheat for personal gain when a subtle change in phrasing framed such behavior as diagnostic of an undesirable identity. Participants were given the opportunity to claim…

We examine the pervasive view that “equity is expensive,” which leads to claims that high capital requirements are costly for society and would affect credit markets adversely. We find that arguments made to support this view are fallacious,…

In this study of the impact of protests against Walmart (a first entrant) on Target (a second entrant) from 1998 to 2008 in U.S. geographic markets, we develop and test a theory of information spillovers from protests against corporations…

Will fast growing emerging economies sustain rapid growth rates until they “catch-up” to the technology frontier? Are there incentives for some developed countries to free-ride off of innovators and optimally “fall-back” relative to the…

We provide an overview of the empirical literature on the politics of accounting standard setting, focusing on the U.S. Financial Accounting Standards Board (FASB). Although it is clear from casual observation that politics sometimes plays a…