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.

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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Measuring Investment Performance in a Rational Expectations Equilibrium Model

Anat R. Admati, Stephen Ross
1984

Abstract not available.

Multimarket Oligopoly: Strategic Substitutes and Complements

Jeremy I. Bulow, John Geanakoplos, Paul Klemperer
1984

A firm’s actions in one market can change competitors’ strategies in a second market, by affecting its own marginal costs in that other market. Whether the action provides costs or benefits in the second market depends on (a) whether it…

New Evidence that Taxes Affect the Valuation of Dividends

1984

This paper uses British data to examine the effects of dividend taxes on investors relative valuation of dividends and capital gains. British data offer great potential to illuminate the dividends and taxes question, since there have been two…

Noncooperative Regulation of a Nonlocalized Externality

David P. Baron
1984

A nonlocalized pollution externality poses special regulatory problems when both a) the costs and benefits of abatement are borne by different persons and b)the interests of the two groups are represented by different regulatory agencies. A…

Nonlinear Least Squares Estimation of the Bass Diffusion Model of New Product Acceptance

Charlotte H. Mason, V. “Seenu” Srinivasan
1984

Schmittlein and Mahajan (Marketing Science 1982) made an important improvement in the estimation of the Bass (1969) diffusion model by appropriately aggregating the continuous time model over the time intervals represented by the data. However,…

Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction

Evan L. Porteus
1984

This author has recently contributed to understanding the economic tradeoffs of alternative production systems by introducing the option of investing in reducing the setup cost parameter in the classical undiscounted EOQ model. That work only…

Portfolio Choice in Research and Development

1984

Possible distortions in the choice of a mix of research and development projects in the market, where competition is subject to “winner-take-all” payoff structure, are analyzed. Attention is devoted to choices of weights on alternative “knowledge…

Practical Aspects of Portfolio Optimization

William F. Sharpe
1984

Abstract not available.

Predictable Representation of Martingale Spaces and Changes of Probability Measure

Darrell Duffie
1984

We study the predictable representations of martingale spaces under a change of probability measure. The canonical decomposition of special semimartingales provides a simple route to the identity and cardinality of a minimal generating subset of…

Price Destabilizing Speculation

David M. Kreps, Oliver Hart
1984

Abstract not available.

Regulation of Prices and Pollution Under Incomplete Information

David P. Baron
1984

The regulation of prices and pollution for a regulated monopolist is considered with a focus on the comparison of standard-setting and emissions taxation approaches to pollution control. The firm is assumed to be better informed about the costs…

Sales Compensation Plans: A Theory

Amiya K. Basu, Rajiv Lal, V. “Seenu” Srinivasan, Richard Staelin
1984

A theory of sales compensation plans is presented where the sales for a product depends not only on the salespersons effort but also on the uncertainty in the selling environment. The firm chooses a compensation plan to maximize its profit taking…

Salesforce Compensation Plans in Environments with Asymmetric Information

1984

In this paper, we present a theory of salesforce compensation plans to explain the type of plans implemented by IBM and St. Regis Paper where the members of the salesforce are provided an opportunity to choose a compensation scheme from a menu of…

Signaling and Imperfect Capital Markets

1984

This paper uses a two-period signaling model of education to show that capital-market imperfections can cause underinvestment in the signal. This can happen even if the government pays all tuition bills and access to credit increases with…

Signalling Games and Stable Equilibria

David M. Kreps
1984

Abstract not available.

A Simple Econometric Approach for Utility-Based Asset Pricing Models

David Brown, Michael Gibbons
1984

Utility-based models of asset pricing may be estimated with or without assuming a distribution for security returns; both approaches are developed and compared here. The chief strength of a parametric estimator lies in its computational…