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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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Plausibility of Signals by a Heterogeneous Committee
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
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
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
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
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
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
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-…
Sour Grapes and Sweet Lemons: The Rationalization of Anticipated Electoral Outcomes
According to McGuire and McGuire’s (1991) “rationalization postulate,” people should adjust their judgments of the desirability of a future event to make them congruent with its perceived likelihood. In a political survey administered to 288…
Stock Market Liberalizations and the Repricing of Systematic Risk
When countries open their stock markets to foreign investors, firms that become eligible for purchase by foreigners (investible) are repriced according to the difference in the covariance of their returns with the local and world market. An…
Tacit Collusion in Repeated Auctions
This paper considers the question of tacit collusion in repeated auctions with independent private values and with limited public monitoring. McAfee and McMillan show that the extent of collusion is tied to availability of transfers. Monetary…
The Effects of Limiting Accounting Discretion on the Informativeness of Financial Statements: Evidence from Software Revenue Recognition
This paper examines the effects on the informativeness of software companies financial statements of limiting the amount of discretion with respect to software revenue recognition following the issuance of Statement of Position 91-1 in 1992. The…
The Effects of Prior Export Performance On Firms Commitment to Exporting and Marketing Strategy Adaptation to the Foreign Market: Evidence from Small and Medium-sized Exporters
To the best of our knowledge, the international business literature has been examining performance exclusively as a dependent variable. In this paper we argue that performance should also be investigated as an independent variable. Using survey…
The Foundations of Imperfect Decision Making
A theory of decision-making is proposed that speaks to Herbert Simon’s methodological critique of economics without resorting to excessive reductionism. Formally, the new theory removes the Contraction axiom of conventional choice theory (which…
The Impact of Rounds of Venture Capital Funding on the Growth Strategy of Startups
This paper examines the dynamic role of financial resources-available through rounds of venture capital financing-on the growth strategies of startups. We investigate three different roles and their evolution over time. 1) We examine whether…
The Organizational Evolution of Global Technological Competition
Various industries are marked by rapid technological change and increasingly global competition. We explain how such developments provide a context for “Red Queen” competition, where organizational learning and competition accelerate each other…
Three Tools for Forecasting Federal Elections: Lessons from 2001
How best to predict Australian federal election results? This article analyses three forecasting tools – opinion polls, economic models, and betting odds. Historically, we find that opinion polls taken close to the election are quite accurate,…
Why Do Firms Use Incentives That Have No Incentive Effects?
This paper illustrates why firms might choose to implement stock option plans or other pay instruments that reward “luck.” I consider a model where adjusting compensation contracts is costly (or wages are rigid) and where agents’ outside…
Why Organizations Don’t “Know What They Know”: Cognitive and Motivational Factors Affecting the Transfer of Expertise
In today’s economy, competitive success is increasingly based on possessing knowledge and intellectual capital rather than financial or other “hard” assets.
Why Should Marketing and Manufacturing Work Together? Some Exploratory Empirical
This paper presents an exploratory investigation of the Manufacturing/Marketing (hereafter M/M) interface. From the literature and prior empirical work in M/M strategies, we propose a path model for assessing the mediating impact of the M/M…
Accessibility or Diagnosticity? Disentangling the Influence of Culture on Persuasion Processes and Attitudes
This research explores the extent to which differences in perceived diagnosticity as compared with differences in the accessibility of associations embedded in persuasion appeals better account for the attitudinal differences found in the culture…