Publications

Stock market crashes, defined as precipitous declines in value for securities that represent a large proportion of wealth (Garber 1992), are rare, difficult to explain, and potentially catastrophic. During four trading days in the crash of…

This paper is motivated by an often-observed but under-studied phenomenon of the modern business enterprise, management by exception. The term describes the relative infrequency of management interference in the lower tiers of an organizational…

Firms often concentrate on a narrow range of activities and claim to forgo other, apparently profitable, opportunities. This pursuit of narrow strategies is applauded by some academics who study strategic management. The authors present two…

President Clinton’s Health Security Act relies on government regulation, not market forces, to control costs. The act creates an entitlement to comprehensive benefits and places the federal budget at risk for total health care costs in order to…

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It was proposed that individuals’ responses to information regarding their relative position in a performance distribution would depend on how they frame the information. To the degree that they focus selectively on the positive features of the…

In this paper we explore the relationship between brand advertising and wholesale and retail margins. We show that when the retail market is characterized by oligopolistic competition, higher level of brand advertising by a manufacturer can lead…

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What is the optimal structure of the banking industry? Is it one in which firms have close long-term relationships with a single bank or one in which firms have arms-length relationships with multiple creditors? And what is the effect of…

We discuss two contrasting styles of vertical organization of an industry with complementary activities or components: systems competition versus component competition. When firm’s competencies differ, systems competition is not a perfect…

Manufacturer supported trade deals remain one of the major competitive tools in today’s market place. This is true despite the fact that such trade deals are often claimed to be unprofitable for manufacturers. The unprofitability is attributed to…

We propose a conditional measure of capital market integration that allows us to characterize both the cross-section and time-series of expected returns in developed and emerging markets. Our measure, which arises from a conditional regime-…

New electronic trading technologies have drastically reduced the costs of financial transactions and put tremendous pressure on financial exchanges to lower their costs. The London Stock Exchange (LSE) is a prominent example of the changes being…

We analyze the effect of extended warranties on manufacturer’s warranty policy under conditions of producer moral hazard. When all consumers in the market are identical, the manufacturer offers a full warranty, blockading entry into the…

The present research investigated the effects of social identification and interpersonal accountability on negotiator judgment and decision making. Using arguments derived from social identity theory, the authors hypothesized that salience…

Recent studies have documented a pervasive pattern of judgmental bias in negotiations. To explain such biases, previous research has focused primarily on how cognitive processes affect negotiation processes. In contrast, the present study…