Working Papers

These papers are working drafts of research which often appear in final form in academic journals. The published versions may differ from the working versions provided here.

Kathleen D. Vohs, Jennifer Aaker, Rhia Catapano
April 2018

Forthcoming in Current Opinion in Psychology

People seek to spend time in positive experiences, enjoying and savoring. Yet there is no escaping negative experiences, from the mundane (e.g., arguing) to the massive (e.g.,...

Pedro M. Gardete, Yakov Bart
April 2018

Forthcoming at Marketing Science

We consider a persuasion setting in which the sender of a message tries to elicit a desired action from a receiver by means of a compelling argument. In order to...

Unnati Narang, Venkatesh Shankar, Sridhar Narayanan
March 20, 2018

Over half of all shopping journeys start with the mobile channel. In particular, the presence of a branded mobile app significantly influences shopping across channels. However, a majority of app users decrease app usage or...

Shai Bernstein, Timothy James McQuade, Richard R. Townsend
March 18, 2018

We investigate how the deterioration of household balance sheets affects worker productivity, and whether such effects mitigate or amplify economic downturns. To do so, we compare the output of innovative workers who were employed at...

Shai Bernstein, Emanuele Colonnelli, Davide Malacrino, Timothy James McQuade
March 18, 2018

Firm entry plays an important role in the amplification and propagation of aggregate economic shocks. In this paper, we study the characteristics of the actual individuals who drive firm entry response to aggregate shocks, the...

Zhengyang Jiang, Arvind Krishnamurthy, Hanno Lustig
March 15, 2018

The convenience yield that foreign investors derive from holding U.S. Treasurys causes a failure of Covered Interest Rate Parity by driving a wedge between the yield on the foreign bonds and the currency-hedged yield on...

Darrell Duffie, Leif Andersen, Yang Song
March 13, 2018

We demonstrate that the funding value adjustments (FVAs) of major dealers are debt-overhang costs to their shareholders. In order to maximize shareholder value, dealer quotations therefore adjust for FVAs. Our case examples include interest-rate swap...

Charles M. C. Lee, Yuanyu Qu, Tao Shen
March 13, 2018

We study firms’ choice to go public through reverse mergers (RMs) versus initial public offerings (IPOs) in a regime with strict entry regulations. Using a manually-assembled data set from China, we show that Chinese RM...

Chris Hennessy, Akitada Kasahara, Ilya A. Strebulaev
March 12, 2018

Absent theoretical guidance, empiricists have been forced to rely upon numerical comparative statics from constant tax rate models in formulating testable implications of tradeoff theory in the context of natural experiments. We fill the theoretical...

Alan Yan, Joshua Kalla, David Broockman
March 8, 2018

Scholars have long noted the marked advantages of panel surveys for understanding the nature and causes of shifts in public opinion. Despite these advantages, existing panel survey approaches are often regarded as prohibitively costly or...

Reto Hofstetter, Harikesh S. Nair, Sanjog Misra
March 3, 2018

Crowdsourced innovation platforms that enable organizations to outsource ideation to parties external to the firm are proliferating. In many cases, the platforms use open contests that allow the free exchange of ideas with the goal...

Maria Dimakopoulou, Susan Athey, Guido W. Imbens
March 2, 2018

Although many contextual bandit algorithms have similar theoretical guarantees, the characteristics of real-world applications oftentimes result in large performance dissimilarities across algorithms. We study a consideration for the exploration vs. exploitation framework that does not...

Amir Goldberg, Sarah K. Stein
March 2018

Network models of diffusion predominantly think about cultural variation as a product of social contagion. But culture does not spread like a virus. In this paper, we

Pedro M. Gardete, James M. Lattin
March 2018

In this paper we explore the determinants of profitability for coalition loyalty programs. We consider a setting in which each of two firms competing in one market may form a coalition loyalty program with one...

Guido W. Imbens
March 2018

Deaton and Cartwright (DC2017 from hereon) view the increasing popularity of randomized experiments in social sciences with some skepticism. They are concerned about the quality of the inferences in practice, and fear that researchers may...

Matthew Corritore, Amir Goldberg, Sameer B. Srivastava
March 2018

How does cultural heterogeneity in an organization relate to its underlying capacity for execution and innovation? Existing literature often

Darrell Duffie, Piotr Dworczak
March 2018

Recent scandals over the manipulation of LIBOR, foreign exchange benchmarks, and other financial benchmarks have spurred policy discussions over their appropriate design. We characterize the optimal fixing of a benchmark as an estimator of a...

Vladimir Asriyan, Dana Foarta, Victoria Vanasco
March 2018

Draft coming soon.

Dana Foarta, Takuo Sugaya
March 2018

Draft coming soon.

Stephen Comello, Stefan J. Reichelstein, Anshuman Sahoo
March 2018

Over the past decade, solar photovoltaic (PV) power has experienced dramatic deployment growth coupled with substantial decreases in system prices. This article examines how solar PV power is currently positioned in the electricity marketplace and...