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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 Allocation of Decisions in Organizations
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…
The Japanese Financial Market: Evidence on the Effects of Group Membership and Deregulation on Investment
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…
On the Bayesian View in Game Theory and Economics
An analysis of the information model is presented to challenge the assertions that the information model and the notion of correlated equilibrium are consequences of the subjectivist, Bayesian view of uncertainty.
Renegotiation in Agency Contracts and Information Acquisition before Renegotiation
This article analyzes renegotiation in an agency model where a principal observes a noisy signal about the agent’s effort before the renegotiation. This signal is not verifiable by an outsider or is not contractible in the initial contract.…
Strategic Learning: A Design Perspective on the Dynamics of Strategic Behaviors and Organizations
This paper introduces the concept of strategic learning to explain long run dynamics of strategic behaviors and organizations. Strategic learning is organizational learning which improves the strategic capability of the organization and changes…
Foreign Investment Economic Growth and Technology Transfer in the Republic of China
This paper examines the impact of foreign direct investment on the transfer of technology to the Republic of China (Taiwan). Using a macroeconomic approach based on aggregate statistical data and a macroeconomic approach based on a questionnaire…
Homework in Macroeconomics I: Basic Theory
This paper argues that the home, or nonmarket, sector is empirically large, whether measured in terms of the time devoted to household production activities or in terms of the value of home produced output. We also argue that there may be a good…
Salesforce Compensation Plans: An Empirical Test of the Agency Theory Framework
A series of recent papers have attempted to investigate the issue of how to compensate a salesforce using the agency theory paradigm. These investigations hypothesize various factors to affect the form of the compensation plan defined in terms of…
A Dynamic Stochastic Model of Entry and Exit to an Industry
This paper develops and analyzes a dynamic stochastic model for a competitive industry which endogenously determines processes for entry and exit and for individual firms output and employment. The concept of stationary equilibrium is introduced…
Entry and Competition in Concentrated Markets
This paper proposes an empirical framework for measuring the effects of entry in concentrated markets. Building on models of entry in atomistically competitive markets, we show how the number of producers in an oligopolistic market varies with…
Optimality of Debt Contracts for Financial Intermediaries
We first prove that the debt contract is the optimal contract between entrepreneurs and arbitrary financial intermediaries in a model where the bank faces an endogenous bankruptcy penalty (as in Diamond (1984)) - the optimality for depositors has…
Theoretical Issues Concerning the History of International Trade and Economic Development
Abstract not available.
Trade Policy, Development, and the New Political Economy
This paper considers some political economy aspects of trade policy in the less developed countries—more than 30 years on. A more literary title might be “Ideas, Ideology, and Interests.” Writing in the 1950’s Meier and Baldwin [1957], as still…
Coordination and the Potential for Self-Sacrifice
An extension of games is proposed, where players are given the option of incurring costs. This extension allows players to signal their intended strategy in the original game. We apply the logic of forwards and backwards induction, without…
Further Distribution Results for Correlation Coefficients and F Tests in Normal Samples
Fisher’s finite sample distribution results for squared multiple correlation coefficients and F tests are extended to situations in which the observations are drawn from independent, but not necessarily identical, normal samples. This…
Longer Trading Periods in the Townsend Turnpike Model
Abstract not available.
A Model Of Optimal Equilibrium Growth
Our aim in these notes is to exposit a model of optimal equilibrium growth. The model is strictly in the Solow tradition. The model has two features which distinguish it from most other work on the subject. These are, first, that the model is…
Nearly Redundant Parameters and Measures of Persistence in Economic Time Series
Many economic time series are nonstationary, apparently exhibiting persistent cycles around a smoothly growing trend. First-differencing removes the nonstationarity, but creates another problem: near parameter redundancy. This paper explores the…
On the Competitive Pressure Created by the Diffusion of Innovations
We consider the decision of a dominant firm to adopt (part or all of) a sequence of potential cost-reducing innovations, as well as the precise time sequence of adoption, when a fixed cost must be incurred at the date of adoption, and the latest…