Working Papers

This chapter explains the logic of structural econometric models and compares them to other types of econometric models. We provide a framework researchers can use to develop and evaluate structural econometric models. This framework pays…

Consider a firm that is developing a highly innovative product. Producing the product requires that an upstream supplier invest in production capacity well in advance. Because the product is ill-defined at the time when the supplier initiates…

Providing explicit instructions to compare one option to other (reference) options is one of the most basic and commonly used promotional and persuasion tactics. Building on prior research on persuasion knowledge and the impact of suspicion, we…

Paragraph IV of the Hatch-Waxman Act provides a mechanism for the litigation of pharmaceutical patent infringement disputes. Many of these cases have been settled with reverse payments by the brand to the generic in return for delayed generic…

Motivated by a $2.2 billion inventory write-off by Cisco Systems, we investigate how duplicate orders can lead a manufacturer to err in estimating the demand rate and customers’ sensitivity to delay, and to make faulty decisions about capacity…

Over the past few years, customer relationship management and loyalty programs (LPs) have been widely adopted by companies and have received a great deal of attention from marketers, consultants, and, to a lesser degree, academics. In this…

Debt relief is unlikely to stimulate investment and growth in the nations being considered for debt relief under the highly indebted poor countries (HIPCs) initiative. This is because the HIPCs do not suffer from debt overhang. The principal…

Abstract not available.

This paper revisits the empirical evidence on the relationship between economic integration and economic growth. First, we present an updated dataset of openness indicators and trade liberalization dates for a wide cross-section of countries in…

This paper compares how much managers value knowledge from internal and external sources. Although many theories account for favoritism toward insiders, we find that preferences for knowledge obtained from outsiders are also prevalent. Two…

We analyze financial market data in order to produce an ex-ante assessment of the economic consequences of war with Iraq. The novel feature of our analysis derives from the existence of a market for Saddam Securities, a new future traded on an…

This paper reports results from a longitudinal field experiment examining the evolution of relationships between consumers and an on-line photography brand in response to brand personality and transgression manipulations. Development patterns…

Overconfident CEOs over-estimate their ability to generate returns. Thus, on the margin, they undertake mergers that destroy value. They also perceive outside finance to be over-priced. We classify CEOs as overconfident when, despite their under-…

Although both feminist theory and critical theory focus on social and economic inequalities, and both have an agenda of promoting system change, these fields of inquiry have developed separately and seldom draw on each other’s work. This paper…

To understand the contemporary state of organizational culture theory and research, it is necessary to grapple with some of the major intellectual disputes that have swept through the humanities and social sciences in recent years. Some…

When you pride yourself on your research record, it is unnerving indeed to discover that one of the most frequently cited papers you have ever written is a “how-to” piece. Since 1987, when we published the first version of this chapter, we have…

Standard agency theory suggests that rational voters will vote to re-elect politicians who deliver favorable outcomes. A second implication is that rational voters will not support a politician because of good outcomes unrelated to the…

This paper examines the information content of the announcement of a sale of a borrower’s loans by its lending bank. We find significant negative stock returns for the borrower on the loan sale announcement, particularly for sub-par loan sales,…

Much of the recent growth and development literature is based on the notion that economies may exhibit multiple equilibria. An economy may get stuck in a vicious circle of poverty as a result of a coordination failure. Little attention has been…

This paper presents a framework to understand and measure the effects of political borders on economic growth and per capita income levels. We present a model providing a theoretical foundation to estimate empirically the effects of political…