Publications

Legislative organization in the face of uncertain policy outcomes has been investigated from the perspective of signaling models in which an informed committee reports a bill and the legislature then amends, enacts or rejects the bill. As the…

We consider the problem of the design and sale of a security backed by specified assets. Given access to higher-return investments, the issuer has an incentive to raise capital by securitizing part of these assets. At the time the security is…

This paper critically reviews the research on how collective bargaining systems influence macroeconomic performance in industrialized countries. The review considers effects of bargaining level, coordination, and corporatist institutional…

We study the evolution of prices in a symmetric duopoly where firms are uncertain about the degree of product differentiation. Customers sometimes perceive the products as close substitutes, sometimes as highly differentiated. Firms learn about…

This study demonstrates that firms with patterns of increasing earnings have higher price-earnings multiples than other firms,1 and that this relation persists after controlling for growth and risk using proxies identified in previous research. 2…

This study demonstrates that firms with patterns of increasing earnings have higher price-earnings multiples than other firms.(1) We find that patterns of increasing earnings are positively correlated with growth and negatively correlated with…

This article presents convenient reduced-form models of the valuation of contingent claims subject to default risk, focusing on applications to the term structure of interest rates for corporate or sovereign bonds. Examples include the valuation…

We examine the effects of interorganizational network structures on acquisition premiums. Drawing on several learning and decision-making theories, we propose a model whereby firms learn by sampling the experiences of their network partners. This…

Paralleling debates in the social capital literature, existing theory is of two minds regarding the performance implications of demographic diversity. One view sees diversity as problematic for organizational teams because of the strains that…

CONTACT AUTHOR JENNIFER AAKER DIRECTLY FOR PAPER COPIES._x000B__x000B__x000B__x000B_Researchers argue that the effectiveness of cognitive versus affective persuasive appeals depends in part on whether the appeal targets a primarily cognitive or…

This paper analyzes two equivalent equilibrium notions under asymmetric information: risk neutral rational expectations equilibria (rn-REE), and common knowledge equilibria. We show that the set of fully informative rn-REE is a singleton,…

The standard Principal–Agent (PA) model assumes that the principal can control the agent’s consumption profile. In an intertemporal setting, however, Rogerson (1985, Econometrica53, 69–76) shows that…

As a consequence of optimal investment choices, a firm’s assets and growth options change in predictable ways. Using a dynamic model, we show that this imparts predictability to changes in a firm’s systematic risk, and its expected return.…

This paper addresses the horizontal coordination between production units located in different countries within a supply chain in a changing environment. Our model incorporates (1) congestion and delay through uncertainties in demand and…

This paper asks how we can predict entrepreneurship, an individual’s participation in the founding of a new organization. We advance a model that combines aspects of two distinct perspectives on entrepreneurship: the social structural view that…

It is an assumption shared by social identity theory (Tajfel and Turner, 1986) and system justification theory (Jost and Banaji, 1994) that the perceived legitimacy of status differences moderates the expression of ingroup vs. outgroup favoritism…

Political conservatism is considered as a special case of motivated social cognition. This perspective helps to integrate three classes of theories: (a) conservatism as a mention of personality (such as authoritarianism, dogmatism, intolerance of…

Is investment constrained more by insecure property rights or by limited external finance? For five transition economies in Eastern Europe and the former Soviet Union we find that weak property rights limit the reinvestment of profits in startup…