Working Papers

This paper examines how public disclosure affects private information acquisition activity in a market economy. We analyze a setting where traders with short-term investment horizons are allowed to trade on their private information prior to a…

A non-equilibrium model of rational strategic behavior that can be viewed as a refinement of (normal form) rationalizability is developed for both normal form and extensive form games. The resulting solution concept, called a tau-theory, allows…

This article analyzes renegotiation in an agency model where a principal observes a noisy signal about the agent’s effort before the renegotiation. This signal is not verifiable by an outsider or is not contractible in the initial contract.…

Abstract not available.

Theorists disagree sharply about the likelihood and consequences of organizational change. This paper suggests that when viewed dynamically, change can be both adaptive and disruptive. Similarly, the same forces that make organizations inert also…

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…