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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.

Martin Gaynor, Carol Propper, Stephan Seiler
December 2016

The impacts of choice in public services are controversial.  We exploit a reform in the English National Health Service to assess the impact of relaxing constraints on patient choice. We estimate a demand model that...

Kostas Bimpikis, Ozan Candogan, Daniela Saban
November 11, 2016

We explore spatial price discrimination in the context of a ride-sharing platform that serves a network of locations. Riders at different locations are heterogeneous in terms of their destination preferences, as captured by the demand pattern of the underlying network. Drivers decide whether,...

Katherine Casey
November 2, 2016

Voting, like hiring, is fundamentally a forecasting problem: voters try to predict the future performance in office by candidates, just as employers estimate the productivity of prospective workers. Forecast inputs combine observable resume criteria with...

Gabriel Doyle, Amir Goldberg, Sameer B. Srivastava, Michael C. Frank
October 24, 2016

Cultural fit is an elusive construct that is often assumed to play an important role in individual, group, and organizational success. Most existing approaches to measuring culture

Anat R. Admati, Peter M. DeMarzo, Martin F. Hellwig, Paul Pfleiderer
October 11, 2016

Firms’ inability to commit to future funding choices has profound consequences for capital structure dynamics. With debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions may enhance firm value. Shareholders...

Susan Athey, Julie Tibshirani, Stefan Wager
October 2016

Forest-based methods are being used in an increasing variety of statistical tasks, including causal inference, survival analysis, and quantile regression. Extending forest-based methods to these new statistical settings requires specifying tree-growing algorithms that are targeted...

Darrell Duffie, Piotr Dworczak, Haoxiang Zhu
September 20, 2016

We analyze the role of benchmarks in over-the-counter markets subject to search frictions. The publication of a benchmark can, under conditions, raise total social surplus by (i) increasing the volume of beneficial trade, (ii) reducing...

Iván Marinovic, Andrzej Skrzypacz, Felipe Varas
September 15, 2016

We study firm’s incentives to build and maintain reputation for quality, when quality is persistent and can be certified at a cost. We characterize all Markov-perfect equilibria where the timing of certification and investment depend...

Lisa De Simone, Richard Sansing
September 1, 2016

This study investigates the use of a cost sharing arrangement (CSA) by multinational corporations (MNCs) to shift the income attributable to valuable intellectual property (IP) to low-tax foreign jurisdictions. Using a strategic tax compliance model,...

Yash Kanoria, Daniela Saban, Jay Sethuraman
September 2016

We consider a two-sided assignment market with agent types and a stochastic structure, similar to models used in empirical studies. We characterize the size of the core in such markets. Each agent has a randomly...

Stephen D. Comello, Stefan J. Reichelstein
September 2016

The policy of net metering allows operators of residential- and commercial solar PV systems to sell surplus electricity back to their utility at the going retail rate. This policy has recently been criticized on the...

John Ameriks, Joseph Briggs, Andrew Caplin, Matthew D. Shapiro, Christopher Tonetti
September 2016

Individuals face significant late-in-life risks, including needing long-term care (LTC). Yet, they hold little long-term care insurance (LTCI). Using both “strategic survey questions,” which identify preferences, and stated demand questions, this paper investigates the degree...

Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
September 2016

This paper examines the relation between political connections and informed trading by corporate insiders in the context of the Financial Crisis. The unprecedented magnitude of government intervention, the substantial impact of this intervention on firm...

Stefan J. Reichelstein, Ansu Sahoo
September 2016

A basic tenet of microeconomics is that for a competitive industry in equilibrium the market price of a product will be equal to its marginal cost. This paper develops a model framework and a corresponding...

Rebecca Lester, Dominika Langenmayr
August 26, 2016
Saumitra Jha, Moses Shayo
August 26, 2016

Financial markets expose individuals to the broader economy. Does participation in financial markets also lead citizens to re-evaluate the costs of conflict, their views on politics and even their voting decisions? Prior to the 2015...

Anna Tuchman, Harikesh S. Nair, Pedro M. Gardete
August 19, 2016

We use a new dataset that links the TV ad consumption behavior of a panel of consumers with their product choice behavior to measure the co-determination of demand for products and advertising. Leveraging the variation...

Yonatan Gur, Lijian Lu, Gabriel Weintraub
August 11, 2016

Framework agreements (FAs) are procurement mechanisms commonly used by buying agencies around the world to satisfy demand that arises over a certain time horizon. This paper is one of the first in the literature that...

Susan Athey, Emilio Calvano, Saumitra Jha
August 6, 2016

We analyze the classic problem of sustaining trust when cheating and leaving trading partners is easy, and outside enforcement is difficult. We construct equilibria where individuals are loyal to smaller groups– communities– that allow repeated...