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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Household Electricity Demand, Revisited

Peter C. Reiss, Matthew White
2002

Recent efforts to restructure electricity markets have renewed interest in assessing how consumers respond to price changes. This paper develops a model for evaluating the effects of alternative tariff designs on residential electricity use. The…

IPOs, Acquisitions and the Use of Convertible Securities in Venture Capital

Thomas Hellmann
2002

This paper provides a new explanation for the use of convertible securities in venture capital, which is based on the trade-off between acquisition or IPOs. A key property of convertible preferred equity is that it allocates different cash flow…

India in the World Trading System

Romain Wacziarg
2002

This paper examines the position of India in the world trading system. It considers three separate questions: Firstly, how integrated is India in the world trade? Secondly, what gains could India reap from further trade liberalization? Thirdly,…

Institutional Allocation in Initial Public Offerings: Empirical Evidence

Reena Aggrawal, Nagpurnanand Prabhala, Manju Puri
2002

We analyze institutional allocation in initial public offerings (IPOs) using a new dataset of US offerings between 1997 and 1998. We document a positive relationship between institutional allocation and day one IPO returns. This is partly…

Leading Indicator Variables, Performance Measurement and Long-Term versus Short-Term Contracts

Stefan J. Reichelstein, Sunil Dutta
2002

This paper develops a multiperiod agency model to study the use of leading indicator variables in managerial performance measures. In addition to the familiar moral hazard problem, the principal faces the task of motivating a manager to undertake…

Moving Procurement Systems to the Internet: The Adoption and Use of E-Procurement Technology Models

Antonio Davila, Mahendra Gupta, Richard J. Palmer
2002

This paper reports the results of a research project addressing the current state of e-procurement technologies. It analyzes which companies are moving fast into these technologies, how experimentation is taking place to learn about the business…

Nationalism in Winter Sports Judging and Its Lessons for Organizational Decision Making

Eric Zitzewitz
2002

This paper exploits nationalistic biases in Olympic winter sport judging to study the problem of designing a decision making process that uses the input of potentially biased agents. Judges score athletes from their own countries higher than…

Off-Target? Changing Cognitive-Based Attitudes

Jennifer Aaker
2002

Researchers argue that the effectiveness of cognitive versus affective persuasive appeals depends in part on whether the appeal is congruent or incongruent with a primarily cognitive or affective attitude base. However, considerable research…

Optimal Incentive Compatible Control of a Queue with Some Patient Customers

Erica Plambeck
2002

Consider an exponential single-server queue with two classes of customers that differ in price-and delay-sensitivity. A system manager sets the production rate and a static price for each class, dynamically quotes the leadtime for each class of…

Optimal Leadtime Differentiation via Diffusion Approximations

Erica Plambeck
2002

This study illustrates how a manufacturer can use leadtime differentiation- selling the same product to different customers at different prices based on delivery leadtime to simultaneously increase revenue and reduce capacity requirements. The…

Performance Impact of Technological Assets and Reconfiguration Capabilities: The Case of Small Manufacturing Firms in Japan

Takehiko Isobe, Shige Makino, David Bruce Montgomery (1938–2025)
2002

The purpose of this study is to investigate the relationships between firm resources and performance. We divide firm resources into two types: primary resources and support resources. Primary resources include technological assets and…

Private Politics and Private Policy: A Theory of Boycotts

David P. Baron
2002

Pubic policies such as regulation, antitrust, and international trade are the result of public politics and competition over who gets what with government the arbiter of that competition. Policies are also chosen by private parties without the…

Renegotiation of Supply Contracts

Erica Plambeck, Terry Taylor
2002

After entering into supply contracts, firms often later renegotiate the terms of those contracts. For example, firms that obtain market demand information after signing supply contracts may benefit by renegotiating the contracts to allow buyers…

Risk Sharing and Asset Prices: Evidence From a Natural Experiment

Anusha Chari, Peter B. Henry
2002

When countries liberalize their stock markets, firms that become eligible for purchase by foreigners (investible), experience an average stock price revaluation of 15.1 percent. Since the covariance of the mean investible firms stock return with…

Selection Criteria for Roll Call Votes

Keith Krehbiel, Jonathan Woon
2002

On grounds of inclusion of undesirable votes (type I errors) and exclusion of desirable votes (type II errors), we question the convention of selecting only final passage votes for roll call analysis. We propose an alternative selection method…

Sell the Plant? The Impact of Contract Manufacturing on Innovation, Capacity and Profitability

Erica Plambeck, Terry Taylor
2002

In the electronics industry and others, Original Equipment Manufacturers (OEMs) are selling their production facilities to contract manufacturers (CMs). The CMs achieve high capacity utilization through pooling (supplying many different OEMs).…

Strategy as Vector and the Inertia of Co-evolutionary Lock-in

Robert A. Burgelman
2002

This comparative longitudinal study of Andy Groves tenure as Intel Corporations CEO (1987-1998) documents how he moved Intels strategy-making process from an internal ecology model to the classical rational actor model. His creation of a highly…

Structural Inertia and Organizational Change Revisited I: Architecture, Culture and Cascading Change*

Glenn R. Carroll, Michael T. Hannan, Laszlo Polos
2002

This paper develops a formal theory of the structural aspects of organizational change. It concentrates on the significance of changes in an organization’s architecture and culture, each represented as a code system. A change is significant when…

Structural Inertia and Organizational Change Revisited II: Complexity, Opacity, and Change*

Glenn R. Carroll, Michael T. Hannan, Laszlo Polos
2002

This paper extends a formal theory of structural aspects of organizational change initiated by Hannan, Polos, and Carroll (2002a, hereafter HPCa). This analysis focuses on the implications of limited foresight of the cascades of consequences of…

Structural Inertia and Organizational Change Revisited III: The Evolution of Organizational Inertia*

Glenn R. Carroll, Michael T. Hannan, Laszlo Polos
2002

Building on a formal theory of the structural aspects of organizational change initiated in Hannan, Polos, and Carroll (2002a, 2002b), this paper focuses on structural inertia. We define inertia as a persistent organizational resistance to…