Working Papers

Financial instability is a major problem for the worlds middle-income developing countries. Barry Eichengreens proposal for dealing with the problem treats currency mismatches the fact that developing countries borrow in dollars instead of their…

We analyze the extent to which simple markets can be used to aggregate disperse information into efficient forecasts of uncertain future events. Drawing together data from a range of prediction contexts, we show that market-generated forecasts…

Two studies examined unconscious racial stereotypes of decision makers in the juvenile justice system. Police officers (Experiment 1) and juvenile probation officers (Experiment 2) were subliminally exposed to words related to the category Black…

This paper (a) provides a framework for quantifying any economy’s flexibility, and (b) reviews the evidence on New Zealand firms birth, growth and death. The data indicate that, by and large, the labour market and the financial market are doing…

We utilize an experimental Speed Dating service to examine racial preferences in mate selection. Our data allow for the direct observation of individual decisions of randomly paired individuals; we may therefore directly infer racial preferences…

We consider the effect a public revelation of information (e.g. rating, grade) has on signaling and trading in a dynamic model. Competing buyers offer prices to a privately informed seller who can reject these offers and delay trade. This delay…

We study self-interested routing in stochastic networks, taking into account the discrete stochastic dynamics of such networks. We analyze a two station multiclass queueing network in which the system manager chooses the scheduling rule used, and…

This paper develops a multiperiod principal-agent model in which a manager must be given incentives to undertake investments and to exert personally costly effort. Investments are soft (e.g., intangible assets) and therefore entail measurement…

The subjective framework for reasoning is extended to incorporate the representation of unawareness in games. Both unawareness of actions and decision makers are modeled as well as reasoning about others’ unawareness. It is shown that a small…

Abstract not available.

U.S. business schools dominate the business school landscape, particularly for the MBA degree. This fact has caused schools in other countries to imitate the U.S. schools as a model for business education. But U.S. business schools face a number…

Models with adaptive agents have become increasingly popular in computational sociology (e.g. Macy 1991, Macy and Flache 2002). In this paper we show that at least two important kinds of such models lack empirical content. In the first type…

This paper provides an overview of the key themes, conceptual frameworks and related tools that are used to examine cases and industry notes in the course Strategy and Action in the Information Processing Industry an applied industry analysis…

We suggest a test for discovering whether a potential expert is informed of the distribution of a stochastic process. In a non-Bayesian non-parametric setting, the expert is asked to make a prediction which is tested against a single realization…

Many firms issue stock options to all employees. We consider three potential economic justifications for this practice: providing incentives to employees, inducing employees to sort, and helping firms retain employees. We gather data on firms’…

The compromise effect denotes the finding that brands gain share when they become the intermediate rather than an extreme option in a choice set (Simonson 1989). Despite the robustness and importance of this phenomenon, choice modelers have…

We investigate the relation between two market anomalies to provide insights into analysts role as information intermediaries. Prior research finds that accruals and analyst earnings forecast revisions predict future returns. We find that the…

When purchasing products, consumers often need to decide on the highest price they are willing to pay (WTP) and, when selling products, on the lowest price they are willing to accept (WTA). In this research, we contrast the determinants of WTP…

Over the past thirty years changes in divorce law have significantly increased access to divorce. The different timing of divorce law reform across states provides a useful quasi-experiment with which to examine the effects of this change. We…

Three things happen when emerging economies open their stock markets to foreign investors. First, the aggregate dividend yield falls by 240 basis points. Second, the growth rate of the capital stock increases by an average of 1.1 percentage…