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SSRN Research Paper Series
The Social Science Research Network’s Research Paper Series includes working papers produced by Stanford GSB the Rock Center.
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The Interaction between Product Market and Financing Strategy: The Role of Venture Capital
Venture capital is widely believed to be an influential arrangement for the financing of new innovative companies. We examine and find empirical evidence that venture capital financing is related to product market strategies and outcomes of…
Do Stock Market Liberalizations Cause Investment Booms?
Stock market liberalizations lead private investment booms. In a sample of 11 developing countries that liberalized, 9 experience growth rates of private investment above their non-liberalization median in the first year after liberalizing. In…
Exchange Rates and Jobs: What Do We Learn from Job Flows?
Currency fluctuations provide a substantial source of movements in relative prices that is largely exogenous to the firm. This paper evaluates empirically and theoretically the importance of exchange rate movements on job reallocation across and…
Housing Market Fluctuations in a Life-Cycle Economy with Credit Constraints
This paper presents a first step towards a new theory of housing market fluctuations. We develop a life-cycle model where agents face credit constraints and their housing consumption is restricted to a discrete set of possibilities. The market…
Liberalization, Moral Hazard in Banking, and Prudential Regulation: Are Capital Requirements Enough?
We consider a dynamic model of moral hazard in banking to analyze two forms of prudential regulation: capital requirements and deposit rate ceilings. We find that using capital requirments in an economy with freely determined deposti rates yields…
Macroeconomic Performance and Collective Bargaining: An International Perspective
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…
The Boundaries of the Firm Revisited
Both Transaction Cost Economics and Property Rights Theories offer explanations of the boundaries of the firm based on ideas of ex post bargaining and hold-up. These theories are quite distinct in their empirical predictions, but neither offers a…
Visionaries, Managers, and Strategic Direction
This paper shows that a firm’s ability to provide incentives for profitable innovation may be enhanced if it has a “visionary” CEO. We interpret “vision” likely evolution of the industry. The presence of such a bias is helpful when employees can…
Competitive Reactions and Conjecture: Issues and Prospects
We review recent literature on competitive reactions and strategic thinking and offer several observations. Evidence is mounting that strategic thinking is an unnatural act, made difficult by natural individual biases and organizational…
Interdealer Trading: Evidence from London
Most theoretical models of dealer markets conclude that interdealer trade increases the efficiency of trading. Until recently, finance economists have not had access to the data necessary to assess the importance and consequence of interdealer…
The Winner's Curse and the Failure of the Law of Demand
We usually assume increases in supply, allocation by rationing, and exclusion of potential buyers will never raise prices. But all of these activities raise the expected price in an important set of cases when common-value assets are sold.…
A Theory of Corporate Venture Investing
Empirically it appears that while investing heavily in internal R&D, established corporations are playing only a relatively minor role in the financing of entrepreneurial companies, even if there seem to be ‘strategic’ reasons that would…
Demand for Computer Products and Services by Large European Organizations
Abstract not available.
Strategic Trading in a Dynamic Noisy Market
This paper studies a dynamic, stationary model of a financial market with a large trader and small noise trader. At each period the alrge trader receives a privately observed stock endowment, and trades with competitive market-makers in order to…
Time and Surplus Allocation Within Marriage
We construct a non-cooperative dynamic model of time and surplus allocation between partners in a marriage. Partners must choose between allocating time to household public goods production or career activities, and both activities exhibit…
Dynamic Efficiency and the Regulated Firm: Evidence from Interfirm Trade in Electricity Markets
This paper presents an empirical analysis of the value of a coordinated market exchange mechanism. I present a model of efficient trading mechanisms under uncertainty, and develop a measure of the value of an interfirm trade agreement in the…
Regulating Bypass
This paper examines optimal regulatory response to a customer considering bypass: service from an unregulated, fringe supplier. Bypass is costly to a regulator concerned with the allocation of a franchise monopoly’s revenues among consumers. I…
A Dynamic Model of an Imperfectly Competitive Bid-Ask Market
This paper studies a dynamic model of a financial market with some large, strategic traders. These traders are risk-averse and exchange a risky asset for hedging purposes. The only private information in the model concerns their hedging demands.…
Large-Firms' Demand for Computer Products and Services: Competing Market Models, Inertia, and Enabling Strategic Change
The organization of the value chain in the computer industry is undergoing profound change. The nature of this change is carcatured in two contrasting market models. In the “vertical” market model, large vertically integrated vendors of propriety…
Mentoring, Discrimination and Diversity in Organizations
This paper studies the economic forces which shape the diversity of an organization over time. We introduce a direct connection between a worker’s attributes (such as gender or cultural background) and her productivity in a given firm.…