Publications

U.S. executive compensation traditionally relies on stock options that vest over time. Recently, however, a growing number of institutional investors have called for the use of performance-vested options that link vesting to the achievement of…

We examine whether a large shareholder can alleviate conflicts of interest between managers and shareholders through the credible threat of exit on the basis of private information. In our model the threat of exit often reduces agency costs, but…

We describe social psychology’s major research findings on metacognition. Although metacognitive ideas have been applied to various topics in social judgment, we focus on some of the most heavily researched areas of social psychology in which the…

We provide the impact on asset prices of search-and-bargaining frictions in over-the-counter markets. Under certain conditions, illiquidity discounts are higher when counterparties are harder to find, when sellers have less bargaining power, when…

The authors propose that individual differences in assertiveness play a critical role in perceptions about leaders. In contrast to prior work that focused on linear effects, the authors argue that individuals seen …

We compare the two most common bidding processes for selling a company or other asset when participation is costly to buyers. In an auction all entry decisions are made prior to any bidding. In a sequential bidding process earlier entrants can…

There is a growing consensus that preferences are inherently constructive and largely determined by the task characteristics, the choice context, and the description of options. Although the fact that construction influences often play an…

Focusing on the four key option pricing model inputs—expected option life, expected stock price volatility, expected dividend yield, and the risk-free interest rate for the expected life of the option—this study finds that firms understate option…

We derive the optimal dynamic contract in a continuous‐time principal‐agent setting, and implement it with a capital structure (credit line, long‐term debt, and equity) over which the agent controls the payout policy. While the project’s…

We examine whether racial/ethnic/language-based variation in measured levels of patients’ trust in a physician depends on the survey items used to measure that trust. Survey items include: (1) a direct measure of patients’ trust that the…

This article puts forward a parsimonious framework for studying subjective perceptions of real-life intergroup conflicts. Four studies were conducted to explore how individuals perceive the strategic properties of the Israeli-Palestinian…

Pricing and quantity decisions are critical to many firms across different industries. We study the joint price/quantity newsvendor model where only a single quantity and price decision is made, such as a fashion or holiday product that cannot be…

We study a dynamic duopoly model with differentiated products and network externalities. New consumers appear each period and the value of the product depends on the size of the network in the current and in the previous period, for example due…

Prior research has shown that positive information presented by a third party shields people from the negative consequences of being perceived as self-promoting. But in many contexts, those third parties are intermediaries with a financial…

We propose a method to test a prediction of the distribution of a stochastic process. In a non-Bayesian non-parametric setting, a predicted distribution is tested using a realization of the stochastic process. A test associates a set of…

We examine how the life chances and financial performance of nascent high-technology firms were affected by two kinds of organizational changes: altering founders’ blueprints for the employment relation and replacing a founder–chief executive…

Autocrats in many developing countries have extracted enormous personal rents from power. In addition, they have imposed inefficient policies including pervasive patronage spending. I present a model in which the presence of ethnic identities and…

To identify the important tradeoffs in consulting a single expert for both diagnosis and treatment, we examine the costs and health outcomes of elderly Medicare beneficiaries with coronary artery disease. We compare the empirical consequences of…