Working Papers

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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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Discrete Choice Models as Structural Models of Demand: Some Economic Implications of Common Approaches

Lanier Benkard, Patrick Bajari
2001

We derive some theoretical economic properties of standard discrete choice econometric models that we believe are undesirable if the models are to be used as structural models of demand. We show that many standard models have the following…

Do FRR 48 Disclosures Reduce Investors' Uncertainty and Diversity of Opinion about Firms' Market Risk Exposures?: A Trading Volume Analysis

Thomas J. Linsmeier, Daniel B. Thornton, Mohan Venkatachalam, Michael Welker
2001

This paper examines whether mandated market risk disclosures under the SEC Financial Reporting Release No. 48 (FRR 48) provide useful information to investors regarding firms’ risk exposures. To provide evidence on this issue we investigate…

Earning The Right To Indulge: Effort As A Determinant Of Customer Preferences Towards Frequency Program Rewards

Itamar Simonson, Ran Kivetz
2001

Although frequency programs (FPs) have become ubiquitous in the marketplace and a key marketing mix tool for promoting customer relationship and loyalty, we still know very little about the factors that determine how such programs are evaluated…

Export Assistance, Price Adaptation to the Foreign Market, and Annual Export Performance Improvement: A Structural Model Examination

Luis Filipe Lages, David Bruce Montgomery (1938–2025)
2001

The increasing amount of export assistance provided to firms of rich and poor countries, shows the high priority given by national and international policy makers to the encouragement of international trade. Despite this, relatively few…

Fighting the War for Talent is Hazardous to Your Organization's Health

Jeffrey Pfeffer
2001

Because we live in an economy in which all work is becoming knowledge work and in which intellectual capital is important for company success and, indeed, its value in the capital markets, there is an assumption that the company with the best…

Inflation and Price Setting in a Natural Experiment

Andrzej Skrzypacz, Jerzy Konieczny
2001

We analyze the behavior of price setters in Poland during transition from a planned to a market economy, using a large disaggregated data set. The size of price changes and the frequency of adjustment both fall as the inflation rate declines.…

Institutionalism as a Methodology

Keith Krehbiel, Daniel Diermeier
2001

We provide a definition of institutionalism and a schematic account that distinguishes between institutional theories (in which institutions are exogenous) and theories of institutions (in which some, but necessarily not all, institutions are…

Is Disinflation Good for the Stock Market?

Peter Blair Henry
2001

When countries attempt to stabilize annual inflation rates that are greater than 40 percent, the domestic stock market appreciates by 24 percent on average. The present value of the long-run benefits to shareholders of reducing high inflation…

Measuring Herding and Exaggeration by Equity Analysts and Other Opinion Sellers

Eric Zitzewitz
2001

Firms and individuals who sell opinions may bias their reports for either behavioral or strategic reasons. This paper proposes a methodology for measuring these biases, particularly whether opinion producers under or over emphasize their private…

Middle-Status Conformity: Theoretical Restatement and Empirical Demonstration in Two Markets

Ezra Zuckerman
2001

A longstanding sociological conjecture predicts that conformity is high in the middle and low at either end of a status order. Despite the intuitive pull of this idea, it has encountered both theoretical and empirical difficulties. This paper…

Midwest Gasoline Pricing and the Spring 2000 Price Spike

Jeremy I. Bulow, Jay Creswell, Jeffrey Fischer, Christopher Taylor
2001

Abstract not available.

Non-Financial Performance Measures and CEO Compensation: An Analysis of Web Traffic

Mohan Venkatachalam, Antonio Davila
2001

This paper investigates the role of non-financial performance measures in executive compensation. Using a sample of Internet firms we document that web traffic, an important non-financial measure for firms in the Internet industry, is positively…

Persuasion Bias, Social Influence, and Uni-Dimensional Opinions

Peter M. DeMarzo, Jeffrey Zwiebel, Dimitri Vayanos
2001

We propose a boundedly-rational model of opinion formation where agents are subject to the phenomenon of persuasion. We argue that persuasion whereby repeated exposure to an opinion has a cumulative effect on an agents beliefs is pervasive and…

Plausibility of Signals by a Heterogeneous Committee

Keith Krehbiel
2001

Krishna and Morgan (2001a) propose “amendments” to two of Gilligan and Krehbiel’s (1987, 1988) theoretical studies of legislative signaling. The new results for homogeneous committees do not significantly change the empirical expectations of…

Primum Non Nocere: Avoiding Harm to Vulnerable Wait List Candidates in an Indirect Kidney Exchange

Stefanos Zenios, Lainie Ross
2001

Background: One proposal to increase kidney transplantation is to exchange kidneys between pairs of ABO-incompatible (or crossmatch -incompatible) living donors and their recipients. One variation that has greater potential exchanges living donor…

Private Ordering on the Internet: The eBay Community of Traders

David P. Baron
2001

eBay provides an online auction venue for remote and anonymous individuals to realize gains from trade. As a venue it never sees the items sold, verifies the item listings, handles settlements, or represents either the buyer or seller. Despite…

Private Politics

David P. Baron
2001

This paper introduces the subject of private politics and presents illustrative models using as the context a conflict between an activist and a firm. Private politics addresses situations of conflict and the resolution of that conflict without…

Prophets and Losses: Reassessing the Returns to Analysts' Stock Recommendations

Maureen McNichols, Brad Barber, Reuven Lehavy, Brett Trueman
2001

After a string of years in which security analysts top stock picks significantly outperformed their plans, the year 2000 was a disaster. During that year the stocks least favorably recommended by analysts earned an annualized market-adjusted…

Relations Between Fully-Revealing Equilibria of Multiple-Sender Signaling and Screening Models

David P. Baron, Adam Meirowitz
2001

We explore the relation between certain multiple-sender cheap-talk signaling games and the corresponding screening or mechanism design games. The existence of fully-revealing equilibria in the signaling game implies the existence of implementable…

I Seek Pleasures, We Avoid Pains: The Role of Self Regulatory Goals in Information Processing and Persuasion

Jennifer Aaker, Angela Lee
2001

In four experiments, we show that goals associated with approach and avoidance needs influence persuasion and that the accessibility of distinct self-views moderates these effects. Specifically, individuals with an accessible independent self-…