Working Papers

Strategic management theorists face a dilemma in choosing methods for studying strategy formulation and strategic decision making. The choice of a research method involves inherent trade-offs of generalizability, control, and realism. This paper…

This paper explores the significance of status processes for generating and reproducing hierarchy among producers in a market. A producer’s status is defined as the degree to which market participants perceive the quality of its product to be…

This paper examines the differences in an internal auditor’s (a firm’s ) equilibrium testing strategy when employees have different abilities to steal from line items. I contrast two models. In the strategic employee model there are two employees…

We examine the assumption of the probabilistic independence of consideration of different brands in the marketplace for a market with substantial product differentiation. Our hypothesis is that probabilistic independence may not hold in such a…

Organizations have different competitive abilities. Theory predicts that this variation will follow a general pattern: whether through learning or selection, older organizations — on average — will have greater competitive strength. Furthermore,…

Abstract not available.

We establish conditions under which cooperative strategies will stabilize in conflict situations modelled as tournaments of iterated Prisoner’s Dilemma (IPD) games. Our results resolve the controversy over the issue of stability of cooperative…

The advantages of collective action by organizations are discussed often, but no attention has been paid to the possibility that engaging in collective action can make organizations less viable. In this paper, I explain that a liability of…

Sociological work on markets has called into question the validity of certain traditionally accepted distinctions between social and economic exchange. Work in this area has shown economic exchange to be structural in the sense stressed by…

The present research investigates how social identification and interpersonal accountability affect decision making during negotiations. We hypothesize that when a share social identity is salient and feelings of interpersonal accountability…

This paper documents and analyzes the time-variation in conditional means and variances of monthly and quarterly excess dollar returns on Euroyen, pound and mark investments. A vector autoregressive framework with weekly sampled data on exchange…

This paper characterizes the manufacturer warranty policy and its effect on consumer behavior under the following conditions: consumers are heterogeneous in risk preferences, consumer actions affecting the probability of warranty redemption are…

The literature on networks suggests that the value of a network is positively affected by the number of geographically dispersed locations it serves (the “network effect”) and the number of its users (the “production scale effect”). We show that…

Abstract not available.

This paper presents asset pricing theory with representative-agent utility given by a stochastic differential formulation of recursive utility. Asset returns are characterized from general first order conditions of the Hamilton-Bellman-Jacobi…

I. Introduction Political parties, their candidates, and their contributors are involved in a complex relationship in which policy positions are taken by parties, candidates compete for votes and for campaign contributions, interest groups and…

Distortionary proportional capital income taxation is shown to cause both static effects via portfolio re-allocation and dynamic effects via changes in the value of a claim to future transfers as well as via perceived changes in the future…

A conceptual model of brand equity from the perspective of the individual consumer is presented. Customer-based brand equity is defined as the differential effect that knowledge about the brand has on consumer response to marketing activity for…

In this paper we analyze the price and advertising strategies for firms competing for the demand of an assortment of goods in an environment with imperfect information. We obtain advertising and loss-leader pricing as an equilibrium outcome.…

This paper develops an infinite horizon, continuous-time, single-agent security pricing model. No restrictions are placed on the underlying information filtration (other than the “usual conditions”) and the agent is assumed to have a monotone…