Working Papers

This study examines several contrasts and similarities between Korean and US executive approaches to certain aspects of strategic alliances. The underlying research premise is that better understanding of the typical similarities and differences…

The chapter suggests that in high-technology companies the processes involved in strategic business exit and corporate transformation are driven by the evolving links of technology strategy, and substantive and generic corporate strategies.…

This research compares two different approaches to identifying strategic groups, a cognitive approach, which reflects the perceptions of managers competing in the industry, an an objective approach, which reflects objective product-market…

This paper studies a dynamic model of a financial market with N strategic agents. Agents receive random stock endowments at each period and trade to share dividend risk. Endowments are the only private information in the model. We find that…

This paper studies a dynamic, stationary model of a financial market with a large trader and small noise trader. At each period the alrge trader receives a privately observed stock endowment, and trades with competitive market-makers in order to…

Every Day Low Pricing can co-exist with a Promotional Startegy as a positioning strategy.

In this paper we develop an empirical model of exchange rates in a target zone. The model is general enough to nest most theoretical and empirical models in the existing literature. We find evidence of two types of jumps in exchange rates.…

We generalize the War of Attrition model to allow for N + K firms competing for N prizes. Two special cases are of particular interest. First, if firms continue to pay their full costs after dropping out (as in standard-setting context), each…

In 1990 the Federal Government included a Most Favored Customer (MFC) clause in the contract (OBRA 90) which would govern the prices paid to firms for pharmaceutical products supplied to Medicaid recipients. The firms had to give Medicaid their…

We construct a non-cooperative dynamic model of time and surplus allocation between partners in a marriage. Partners must choose between allocating time to household public goods production or career activities, and both activities exhibit…

Part ownership of a takeover target can help a bidder win a takeover auction, often at a low price. A bidder with a “toehold” bids aggressively in a standard ascending auction because its offers are both bids for the remaining shares and asks…

In this paper we study the effects of transaction costs on asset prices in an overlapping generations economy with a riskless and liquid bond and N risky stocks whose trading is subject to proportional costs. Quite surprisingly, the price of a…

We live in an organizational world. Most of us are born in an organization (a hospital) and our very existence is ratified by government agency that issues a certificate documenting our birth. When we die, a death certificate will be issued by…

The purpose of this study is to investigate when director interlocks affect corporate behavior, and how much influence they exert, by studying the conditions under which their influence varies. Existing theory supports the view that interlocks…

This paper derives a statistical discrimination model that includes the self selection that results when employees optimally choose which jobs to apply for. We show that in such a model important theoretical results in the statistical…

This paper examines the entry decisions of generic pharmaceutical manufacturers into markets opened by patent expiration. In particular, I examine the role of pre-expiration brand advertising to see if it deters generic entry. Other drug…

When commercial banks make loans to firms and also underwrite securities, does this hamper or enhance their role as certifiers of firm value? ¶his paper examines empirically the pricing of bank-underwritten securities as compared to investment-…

Recent research has demonstrated that, contrary to the assumption of value maximization, consumer choices are influenced by the configuration of the set of options under consideration (“context effects”). We examine whether two types of context…

In this paper we apply ideas to the specific issue of deposit mobilization. This issue is central to the debate on financial deepening. Mobilizing deposits is crucial in many developing countries. Domestic funds provide a cheap and reliable…

This paper presents an empirical analysis of the value of a coordinated market exchange mechanism. I present a model of efficient trading mechanisms under uncertainty, and develop a measure of the value of an interfirm trade agreement in the…