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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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Effect Propensity: The Location of the Reference State in the Option Space as a Determinant of the Direction of Effects on Choice
In a choice between any two options, decision makers can be divided into three segments: those who strongly prefer the first option, those who strongly prefer the second option, and those who might choose either option depending on the particular…
Exposure to Benevolent Sexism and Complementary Gender Stereotypes: Consequences for Specific and Diffuse Forms of System Justification
It has been argued that seemingly benevolent and complementary gender stereotypes serve to maintain or increase support for the system of gender inequality, especially among women. In prior work, support for this hypothesis has been indirectly…
External and Internal Pricing in Multidivisional Firms
Multidivisional firms frequently rely on external market prices in order to value internal transactions across profit centers. This paper examines market-based transfer pricing when an upstream division has monopoly power in selling a proprietary…
Fair Market Ideology: Its Cognitive-Motivational Underpinnings
Public opinion research shows that most people espouse egalitarian ideals and acknowledge substantial income inequality in society, but they consistently perceive the economic system to be highly fair and legitimate. In an attempt to better…
Firms' Choice of Regulation Instruments to Reduce Pollution: A Tansaction Cost Approach
This paper extends transaction costs economics to analyze relationships between firms and regulatory agencies. It compares the economic efficiency of firm-agency governance structures for dealing with pollution reduction. The transaction costs of…
Firms' Voluntary Recognition of Stock-Based Compensation Expense
This study investigates factors associated with firms decisions in 2002 and early 2003 to recognize stock-based compensation expense under Statement of Financial Accounting Standards (SFAS) No. 123. We find that the likelihood of SFAS 123 expense…
Hedonic Price Indexes with Unobserved Product Characteristics, and Application to PC's
We show that hedonic price indexes may be biased when not all product characteristics are observed. We derive two primary sources of bias. The first is a classical selection problem that arises due to changes over time in the values of unobserved…
Helping The Poor to Help Themselves: Debt Relief or Aid?
Debt relief is unlikely to stimulate investment and growth in the worlds highly indebted poor countries (HIPCs). This is because the HIPCs do not suffer from debt overhang. The principal obstacle to investment and growth in the worlds poorest…
Higher Supply Chain Security with Lower Cost: Lessons from Total Quality Management
Supply chain security has become a major concern to the private and public sector, after the disastrous event of September 11, 2001. Prior to September 11, 2001, supply chain security concerns were related to controlling theft and reducing…
How Widespread is Late Trading in Mutual Funds?
This paper uses daily fund flow data to examine the extent of late trading in the mutual fund industry. Using data from a 10-15 percent subsample of the industry, I find annual long-term shareholder losses due to late trading of about 5 basis…
In Search Of ISO: An Institutional Perspective On The Adoption Of International Management Standards
This paper analyzes the determinants of the cross-national adoption of the international Environmental Management System standard ISO 14001 using a panel of 102 countries from 1996 to 2000. I use new institutional economics to develop hypotheses…
Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well-being
This paper analyzes the effects of business cycle volatility on measures of subjective well-being, including self-reported happiness and life satisfaction. I find robust evidence that high inflation and, to a greater extent, unemployment lower…
Is Debt Relief Efficient?
When Less Developed Countries (LDCs) announce debt relief agreements under the Brady Plan, their stock markets appreciate by an average of 60 percent in real dollar termsa $42 billion increase in shareholder value. In contrast, there is no…
Market Design: The Policy Uses of Theory
The use of modern microeconomics in policy is illustrated by the markets for spectrum, electricity, greenhouse-gas reductions, defense procurement, and Treasury bills. Further examples are antitrust divestiture rules, market-based redistribution…
Market Segmentation Strategies of Multiproduct Firms
We analyze a multiproduct duopoly and ask whether firms should offer general purpose products or tailor their offerings to fit specific consumer needs. There are two effects of offering a targeted product: (i) if a consumers favorite product is…
Matching and Price Competition
We develop a model in which firms set their salary levels before matching with workers. Wages fall relative to any competitive equilibrium while profits rise almost as much, implying little inefficiency. Furthermore, the best firms gain the most…
Optimal Control Assemble-to-Order Systems with Delay Guarantees
Consider a high-volume assemble-to-order system with multiple products and components in which component production can be expedited at some additional cost. The objective is to maximize expected discounted profit subject to assembling orders…
SFAS 123 Stock-Based Compensation Expense and Equity Market Values
This study investigates the relation between share price and stock-based compensation expense that is disclosed but not recognized under SFAS 123, after controlling for net income, equity book value, and expected earnings growth. Our instrumental…
A Separation Principle for Assemble-to-Order Systems With Expediting
In an assemble-to-order system, a wide variety of products are rapidly assembled from component inventories, in response to customer orders. Orders must be filled within a product-specific target leadtime. In the event that some of the…
Strategy Making and Evolutionary Organization Theory: Insights from Longitudinal Process Research
This paper proposes that strategy-making processes can be fruitfully integrated with evolutionary organization theory. An evolutionary research lens comprising three interrelated conceptual frameworks helps identify and analyze the role of…