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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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Power Functions of Some Common Regression Tests
This paper reviews and extends nonnull distribution results for ratios of normal quadratic forms found in R2S, F-tests, and likelihood ratio criteria. The extensions cover misspecified regression models and models with normal scale mixture errors…
The Complexity of Computing a Best Response Automaton in Repeated Games with Mixed Strategies
I examine the complexity of computing a best response automaton in a two-person repeated game when there is uncertainty about the automaton selected by the other player. There are two versions of this problem: 1. Finding a best response automaton…
Entry in Monopoly Markets
Existing empirical models of entry in concentrated markets make indirect inferences about the competitive effect of entry. We propose empirical models whose structural equations are those of several different game-theoretic models of entry. These…
Alternative Non-nested Specification Tests of Time Series Investment Models
This paper develops and compares nonnested hypothesis tests for linear regression models with first-order serially correlated errors. It extends the nonnested testing procedures of Pesaran, Fisher and MacAleer, and Davidson and MacKinnon, and…
An Equilibrium Model with Keynesian Unemployment at Walrasian Prices
One of the oldest and most central open problems confronting economic theory is to reconcile the fact of involuntary unemployment with the hypothesis of equilibrium by constructing a closed, reasonably complete economic model which admits such…
Competitive Efficiency Wage Models with Keynesian Features
Competitive general equilibrium models with efficiency wage features are used to analyze some Keynesian propositions. The models are characterized by fully optimizing agents, flexible prices, competitive markets, and absence of demand uncertainty…
Contributions to The New Palgrave
This “paper” consists of six separate, individually authored entries to appear in “The New Palgrave: A Dictionary of Economic Theory and Doctrine”. The contributions are: “Nash Equilibrium” by Kreps, “Large Economies,” “Lindahl Equilibrium and “…
Detecting Multiple Outliers with an Application to R&D Productivity Studies
Multiple outlying observations are frequently encountered in applied studies in business and economics. Several multiple outlier tests exist, but little evidence is available on their relative power against alternative types of outliers and…
Dynamic Price Games With Learning-by-Doing
Learning-by-doing and increasing returns are often perceived to have similar implications for industrial concentration. We analyze this issue in the context of an infinite horizon. price-setting game. A complete characterization of market sharing…
Excess Capacity as a Barrier to Entry: An Empirical Appraisal
This paper examines excess capacity barriers to entry and investment dynamics in a sample of thirty-eight chemical product industries. Logit and log-linear models of investment behavior are estimated, and specific case examples are considered.…
Involuntary Unemployment and Imperfect Competition: A Game Theoretic Macro Model
This paper considers a game-theoretic, non-Walrasian, general equilibrium model of price determination, production, and exchange. In this game, firms first select prices and wages, consumers/workers then make input supply and output demand offers…
Optimal Auditing, Insurance, and Redistribution
The objective of this paper is to analyse optimal tax and audit strategies for a principal seeking to redistribute income among a population of taxpayers when the principal can observe the income of an individual at a cost. We show that in very…
Process Constraints on Strategic Capability Transfer During Acquisition Integration
This paper reports the results of an in-depth study of the acquisition integration process in seven acquisitions representing twelve firms. A grounded theory of acquisition integration is elaborated. Three constraints in the integration process…
Strategic Capability Transfer in Acquisition Integration
This paper presents a grounded theory of the acquisition integration process. The theory proposes that the central element in successful acquisition integration is the transfer of strategic capabilities between firms. A series of interactions…
Asymmetric Information and Labor Contracts: A Survey
This paper surveys models of optimal labor contracts between risk averse workers and privately informed firms. We analyze the inefficiencies resulting from the conflict between the provision of incentives for the firm and risk sharing…
Bias in Small Sample Tests of Stock Price Rationality
This paper demonstrates a severe small sample bias in the use of sample variances to test stock price variance bounds, under the maintained assumption that prices and dividends follow stationary and ergodic stochastic processes. This bias is due…