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.

Benedikt Downar, Jürgen Ernstberger, Stefan J. Reichelstein, Sebastian Schwenen, Aleksandar Zaklan
May 2020

We examine whether a disclosure mandate for greenhouse gas emissions creates stakeholder pressure for firms to subsequently reduce their emissions. For UK-incorporated listed firms such a mandate was adopted in 2013. Using a difference-in-differences design,...

Yizhou Jin, Shoshana Vasserman
April 2020

Consumer data is increasingly available to firms through private exchanges. We study a voluntary monitoring program by a major U.S. auto insurer, in which drivers accept short-term tracking in exchange for potential discounts on future...

Sven A. Beiker, Robert A. Burgelman
April 2020

This paper examines the automation and sharing aspects of the competitive dynamics of the emerging automated mobility industry. It applies strategic management, technological innovation and forecasting frameworks to examine how the different categories of industry...

Terrence Blackburne, John D. Kepler, Phillip J. Quinn, Daniel J. Taylor
April 2020

One of the hallmarks of the SEC’s investigative process is that it is shrouded in secrecy — only the SEC staff, high-level managers of the company being investigated, and outside counsel are typically aware of...

Benjamin Hébert, Michael Woodford
March 25, 2020

Decisions take time, and the time taken to reach a decision is likely to be informative about the cost of more precise judgments. We formalize this insight in the context of a dynamic rational inattention...

Salman Arif, John D. Kepler, Joseph Schroeder, Daniel Taylor
March 2020

While the shareholder benefits of audits are well documented, evidence on whether audits can facilitate opportunistic behavior by corporate insiders is scarce. In this paper, we examine whether the audit process facilitate one particular form...

Anqi Li, Davin Raiha, Ken Shotts
March 2020

We develop a model of electoral accountability with mainstream and alternative media. In addition to regular high- and low-competence types, the incumbent may be an aspiring autocrat who controls the mainstream media and will...

Daniel Chen, Darrell Duffie
February 19, 2020

We model a simple market setting in which fragmentation of trade of the same asset across multiple exchanges improves allocative efficiency. Fragmentation reduces the inhibiting effect of price-impact avoidance on order submission. Although fragmentation reduces...

Benjamin Hébert, Jennifer La'O...
February 7, 2020

This paper analyzes non-fundamental volatility and efficiency in a class of large games (including e.g. linear-quadratic beauty contests) that feature strategic interaction and endogenous information acquisition. We adopt the rational inattention approach to information acquisition...

Benjamin Hébert, Michael Woodford
January 31, 2020

We derive a new cost of information in rational inattention problems, the neighborhood-based cost functions, starting from the observation that many applications involve exogenous states with a

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Susan Athey, Kevin Bryan, Joshua S. Gans
January 10, 2020

The allocation of decision authority by a principal to either a human agent or an artificial intelligence (AI) is examined. The principal trades off an AI’s more aligned choice with the need to motivate the...

Morris A. Cohen, Shiliang Cui, Ricardo Ernst, Hau L. Lee, Arnd Huchzermeier, Panos Kouvelis, Hau L. Lee, Hirofumi Matsuo, Marc Steuber
January 8, 2020

This paper reports on the results of a global field study conducted in 2014 and 2015 among leading manufacturers from a wide range of industries. It provides insights on managerial practices that concern production sourcing...

Anat R. Admati
January 5, 2020

A healthy and stable financial system enables efficient resource allocation and risk sharing. A reckless and distorted system, however, causes enormous harm. The cycles of boom, bust, and crisis that repeatedly plague banking and finance...

Kevin Smith, Eric C. So
January 2020

We develop a measure of how information events impact investors’ perceptions of firms’ riskiness. We derive this measure from an option-pricing model where investors anticipate an announcement containing information on the mean and variance of...

Yonatan Gur, Ahmadreza Momeni
2020

Sequential experiments are often designed to strike a balance between maximizing immediate payoffs based on available information, and acquiring new information that is essential for maximizing future payoffs. This trade-off is captured by the multi-armed...

Kostas Bimpikis, Wedad J. Elmaghraby, Ken Moon, Wenchang Zhang
2020

Platforms can obtain sizable returns by operationally managing their market thickness, i.e., the availability of supply-side inventory. Using data from a natural experiment on a major B2B auction platform specializing in the $424 billion secondary...

Yonatan Gur, Gregory Macnamara, Daniela Saban
2020
In many marketplaces that facilitate trade with the objective of maximizing consumer surplus, prices are set by revenue-maximizing sellers but platforms can influence prices through (i) price-dependent promotion policies that can increase demand for a product...
J. Choi, Daniela Saban, Gabriel Weintraub
2020
Yonatan Gur, Gregory Macnamara, Daniela Saban
2020

We study the design of sequential procurement strategies that integrate stochastic and strategic information. We consider a buyer who repeatedly demands a certain good and is unable to commit to long-term contracts. In each time...

Yonatan Gur, Ahmadreza Momeni, Stefan Wager
2020

We study a non-parametric multi-armed bandit problem with stochastic covariates, where a key complexity driver is the smoothness of payoff functions with respect to covariates. Previous studies have focused on deriving minimax-optimal algorithms in cases...