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 and the Rock Center.
You may search for authors and topics and download copies of the work there.
Rationality, Revolution and Revolt: The (HAP-) Hazards of Informational Cascades
This paper models a dynamic sequence of protest activities as an informational cascade. Such a synthesis of participation and signaling games motivates why large numbers of people may have incentives to engage in costly collective action. The…
Reputation and Performance Fee Effects on Portfolio Choice by Investment Advisers
This paper considers a two-period model of investment management. Investors decide how to reallocate their wealth between two mutual funds managed by different investment advisers after observing the performance of each adviser in the first…
Robust Financial Contracting and the Role of Venture Capitalists
This paper analyzes a model of financing for start-up companies, focusing on the investment decisions that are made in later stages of financing and on the interaction between entrepreneurs, venture capitalists and other capital providers. We…
Shelf Space Allocation for Store Brands
This paper studies the shelf space allocation decision for a store brand. We argue that since the store brand can play a unique role in the overall strategy of the retailer, traditional arguments for shelf space allocation decisions may not be…
Stock Market Crashes
Stock market crashes, defined as precipitous declines in value for securities that represent a large proportion of wealth (Garber 1992), are rare, difficult to explain, and potentially catastrophic. During four trading days in the crash of…
The Allocation of Decisions in Organizations
This paper is motivated by an often-observed but under-studied phenomenon of the modern business enterprise, management by exception. The term describes the relative infrequency of management interference in the lower tiers of an organizational…
The Impact of Manufacturer Advertising on Retail and Wholesale Margins
In this paper we explore the relationship between brand advertising and wholesale and retail margins. We show that when the retail market is characterized by oligopolistic competition, higher level of brand advertising by a manufacturer can lead…
The Implications of First-Order Risk Aversion for Asset Market Risk Premiums
Abstract not available.
The Japanese Financial Market: Evidence on the Effects of Group Membership and Deregulation on Investment
What is the optimal structure of the banking industry? Is it one in which firms have close long-term relationships with a single bank or one in which firms have arms-length relationships with multiple creditors? And what is the effect of…
The Vertical Organization of Industry: Systems Competition Versus Component Competition
We discuss two contrasting styles of vertical organization of an industry with complementary activities or components: systems competition versus component competition. When firm’s competencies differ, systems competition is not a perfect…
A Theory of Forward Buying, Merchandising and Trade Deals
Manufacturer supported trade deals remain one of the major competitive tools in today’s market place. This is true despite the fact that such trade deals are often claimed to be unprofitable for manufacturers. The unprofitability is attributed to…
Time-Varying World Market Integration
We propose a conditional measure of capital market integration that allows us to characterize both the cross-section and time-series of expected returns in developed and emerging markets. Our measure, which arises from a conditional regime-…
Transaction Costs in Dealer Markets: Evidence from the London Stock Exchange
New electronic trading technologies have drastically reduced the costs of financial transactions and put tremendous pressure on financial exchanges to lower their costs. The London Stock Exchange (LSE) is a prominent example of the changes being…
Warranties, Extended Warranties, and Product Quality
We analyze the effect of extended warranties on manufacturer’s warranty policy under conditions of producer moral hazard. When all consumers in the market are identical, the manufacturer offers a full warranty, blockading entry into the…
Auctions vs. Negotiations
Which is the more profitable way to sell a company: a public auction or an optimally structured negotiation with a smaller number of bidders? We show that under standard assumptions the public auction is always preferable, even if it forfeits all…
Deference, Extremism, and Interest Group Ratings
A clearer understanding of the strengths and weaknesses of measures of legislative preferences is essential for resolving substantive disputes about the composition of standing committees in legislatures. In criticizing interest group ratings as…
Designing a Central Bank in a Federal System: The Deutsche Bundesbank 1957-1992.
This chapter analyzes the political dispute surrounding the 957 replacement of the Bank deutscher Lander by the Deutsche Bundesbank and the 1992 changes to the Bundesbank law necessitated by German unification. The evidence suggests that the…
Dynamic Price Formation in a Futures Market via Double Auctions
We report an exploratory study of the process of price formation in a speculative market in the absence of liquidity traders. Traders exchange a futures contract because they interpret information differently. We formulate trading as a sequence…
Dynamic Pricing in Retail Gasoline Markets
This paper tests for price patterns in retail gasoline markets consistent with those predicted by models of implicit collusion among firms. Recent supergame models show that the highest supportable collusive price is a function of today’s profit…
Exchange Rate Volatility and Deviations From Unbiasedness in a Cash-Advance-Model
Abstract not available.