Publications

The regulation of prices and pollution for a regulated monopolist is considered with a focus on the comparison of standard-setting and emissions taxation approaches to pollution control. The firm is assumed to be better informed about the costs…

Abstract not available.

A theory of sales compensation plans is presented where the sales for a product depends not only on the salespersons effort but also on the uncertainty in the selling environment. The firm chooses a compensation plan to maximize its profit taking…

In this paper, we present a theory of salesforce compensation plans to explain the type of plans implemented by IBM and St. Regis Paper where the members of the salesforce are provided an opportunity to choose a compensation scheme from a menu of…

This paper uses a two-period signaling model of education to show that capital-market imperfections can cause underinvestment in the signal. This can happen even if the government pays all tuition bills and access to credit increases with…

Abstract not available.

Utility-based models of asset pricing may be estimated with or without assuming a distribution for security returns; both approaches are developed and compared here. The chief strength of a parametric estimator lies in its computational…

Our 20 year studies find that MBAs are happy, prosperous, and are moving from large to small business. On average they are either very Satisfied , or Satisfied with their jobs. Their median earnings at 20 years out in 1981, 1982, and 1983,…

Stochastic equilibria under uncertainty with continuous-time security trading and consumption are demonstrated in a general setting. The equilibrium shown has the property of no expected financial gain from trading securities. The relevance of…

We show that, for strategic reasons, an oligopolist in a natural resource industry might employ a backstop technology to develop costly reserves even if it does not plan to exhaust all less expensive deposits. The reason is that an oligopolist…

The strategic process in large, diversified firms is shown to be isomorphous to the enactment—selection—retention model of evolutionary theory. Such strategic processes are internalized selection mechanisms, nested within external environmental…

This study is designed to augment the buy-versus-lease literature by incorporating (1) risk-sharing motives, (2) moral hazard-related incentive problems and their mitigation, and (3) tax considerations in the choice of how to allocate an asset’s…

The paper applies some game-theoretic and incentive arguments to the analysis of fiscal federalism. First, decentralized taxation in a setting with agents having costly opportunities to move across states is modeled as a game between state…

When the assumption of constant risk premiums is relaxed, financial valuation models may be tested, and risk measures estimated without specifying a market index or state variables. This is accomplished by examining the behavior of conditional…

This paper examines the effects of Broad Tape news releases of earnings and dividend announcements on three aspects of intraday stock price behavior: mean returns, return variance, and serial correlation in consecutive price changes. The initial…

The learning curve has become a central concept for corporate strategic planning. However, strategies based on the learning curve often fail to achieve their intended results. This paper explores the implications of the learning curve for…

This pager uses data on 37 chemical products to test a number of hypotheses about the learning curve and industrial price behavior. The results document a strong and consistent learning effect. Learning is found to be a function of cumulated…

Abstract not available.