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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Interfirm Relationships and Informal Credit in Vietnam

John McMillan, Christopher Woodruff
1999

Firms routinely rely on other firms’ goodwill. Where a well-functioning legal system exists, in advanced economies, ongoing relationships complement formal contracts in helping deals work smoothly [Macaulay 1963; Haley 1997]. Where laws of…

International Asset Allocation with Time-Varying Correlations

Andrew Ang, Geert Bekaert
1999

It is widely believed that correlations between international equity markets tend to increase in highly volatile bear markets. This has led some to doubt the benefits of international diversification. This article solves the dynamic portfolio…

Justice For All? Progress in Research on Cultural Variation in the Psychology of Distributive and Procedural Justice

Michael W. Morris, Kwok Leung
1999

We review progress in research attempting to model the influence of culture on judgments of justice. We review research on people’s reactions to resource allocation outcomes, the psychology of distributive justice, as well as on people’s…

Labor Market Flexibility Do Companies Really Know Best?

Jeffrey Pfeffer
1999

Abstract not available.

Learning and Forgetting: The Dynamics of Aircraft Production

Lanier Benkard
1999

This paper studies commercial aircraft production, with an emphasis on the dynamics of production technology. Because commercial production is subject to many uncertainties not present in military production, the data presented here allows…

Learning for a Brush with Danger: How it is Enabled by Counterfactual Thinking and Suppressed by Organizational Accountability

Michael W. Morris, Paul C. Moore
1999

We investigate when and how aviation pilots respond to a near accident by drawing lessons for improved future performance. We hypothesize that individuals learn from a “close call” by imagining how the danger could have been reduced had they…

Legislative Organization with Informational Committees

David P. Baron
1999

Legislative organization in the face of uncertain policy outcomes has been investigated from the perspective of signaling models in which an informed committee reports a bill and the legislature then amends, enacts or rejects the bill. As the…

Market Experimentation in a Dynamic Differentiated-Goods Duopoly

Godfrey Keller, Sven Rady
1999

We study the evolution of prices in a symmetric duopoly where firms are uncertain about the degree of product differentiation. Customers sometimes perceive the products as close substitutes, sometimes as highly differentiated. Firms learn about…

Market Rewards Associated with Patterns of Increasing Earnings

Mary E. Barth, Mark Finn, John Elliott
1999

This study demonstrates that firms with patterns of increasing earnings have higher price-earnings multiples than other firms.(1) We find that patterns of increasing earnings are positively correlated with growth and negatively correlated with…

Network Learning: The Effects of Partner Experience Heterogeneity on Corporate Acquisitions

1999

We examine the effects of interorganizational network structures on acquisition premiums. Drawing on several learning and decision-making theories, we propose a model whereby firms learn by sampling the experiences of their network partners. This…

Networks, Diversity, and Performance: The Social Capital of Corporate R&D Units

Ray Reagans, Ezra W. Zuckerman
1999

Paralleling debates in the social capital literature, existing theory is of two minds regarding the performance implications of demographic diversity. One view sees diversity as problematic for organizational teams because of the strains that…

Off-Target? An Explanation for Asymetric Effects of Attitude Structure

Jennifer Aaker
1999

CONTACT AUTHOR JENNIFER AAKER DIRECTLY FOR PAPER COPIES._x000B__x000B__x000B__x000B_Researchers argue that the effectiveness of cognitive versus affective persuasive appeals depends in part on whether the appeal targets a primarily cognitive or…

Optimal Operating Policies for Multi-Plant Stochastic Manufacturing Systems In a Changing Environment

Lode Li, Evan L. Porteus, Hongtao Zhang
1999

This paper addresses the horizontal coordination between production units located in different countries within a supply chain in a changing environment. Our model incorporates (1) congestion and delay through uncertainties in demand and…

Organizational Roles and Transitions to Entrepreneurship

William P. Barnett, Stanislav Dobrev
1999

This paper asks how we can predict entrepreneurship, an individual’s participation in the founding of a new organization. We advance a model that combines aspects of two distinct perspectives on entrepreneurship: the social structural view that…

Perceived Legitimacy as an Implicit and Explicit Moderator of Ingroup and Outgroup Favoritism Among Members of Low Status Groups

John T. Jost
1999

It is an assumption shared by social identity theory (Tajfel and Turner, 1986) and system justification theory (Jost and Banaji, 1994) that the perceived legitimacy of status differences moderates the expression of ingroup vs. outgroup favoritism…

Political Conservatism As Motivated Social Cognition

Arie Kruglanski, Jack Glaser
1999

Political conservatism is considered as a special case of motivated social cognition. This perspective helps to integrate three classes of theories: (a) conservatism as a mention of personality (such as authoritarianism, dogmatism, intolerance of…

Property Rights, Finance, and Entrepreneurship

Simon Johnson, John McMillan, Christopher Woodruff
1999

Is investment constrained more by insecure property rights or by limited external finance? For five transition economies in Eastern Europe and the former Soviet Union we find that weak property rights limit the reinvestment of profits in startup…

Responsibility Tokens in Supply Chain Management

Evan L. Porteus
1999

The decentralized supply chain management scheme of Lee and Whang (1999) can be viewed as operationalizing the decentralized management scheme implicit in Clark and Scarf (1960). This paper proposes the use of what are called responsibility…

Selling to the News Vendor

Martin Lariviere, Evan L. Porteus
1999

Consider selling to a news vendor. A manufacturer markets a product through a retailer who has one opportunity to order before demand is realized. Because of characteristics of the product, norms of the industry, or aspects of the manufacturer-…

Share Repurchases and Intangible Assets

Mary E. Barth, Ron Kasznik
1999

As predicted, firms with more intangible assets are more likely to announce open-market share repurchases and experience more positive announcement returns. Also as predicted, idle cash is positively related to repurchase announcement likelihood…