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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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The Social Character of Economic Exchange
Sociological work on markets has called into questio 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 Social Context of Negotiation: Effects of Social Identify and Accountability on Negotiator Decision Making
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…
The Time-Variation of Expected Returns and Volatility in Foreign Exchange Markets
This paper documents and analyzes the time-variation in conditional means and variances of monthly and quartely excess dollar returns on Euroyen, -pound and -mark investments. A vector autoregressive framework with weekly sampled data on…
Warranty Policy and Extended Service Contracts: Theory and Application to Automobiles
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…
Adoption of Technologies with Network Effects
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…
Altruism and Philanthropy: Religious and Secular Approaches
Abstract not available.
Asset Pricing with Stochastic Differential Utility
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…
Campaign Contributions and Party-Candidate Competition in Services and Policies
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…
Capital Income Taxation and International Portfolio Choice
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…
Conceptualizing, Measuring, and Managing Customer-based Brand Equity
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…
Consumer Expectations and Loss-Leader Pricing In Retail Stores
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.…
Continuous-Time Security Pricing: A Utility Gradient Approach
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…
Converting from Independent to Employee Sales Forces: The Role of Perceived Switching Costs
Manufacturers selling into the U.S. market often use independent sales agencies (manufacturers’ representatives) to serve some or all of their customers. We model a manufacturer’s intention to replace its independent sales agents by…
Dividing a Cake By Majority: The Simplest Equilibria
In a stochastic game of dividing a cake by majority, the simplest equilibria are the Baron-Ferejohn (1989) ones. The formal definition of simplicity and the computational methods of the equilibria make use of an automaton measure of complexity…
Electoral Cycles and International Policy Coordination
This paper analyzes the interaction between domestic politics and international policy coordination as a two-level repeated prisoners’ dilemma. At the domestic level, political competition generates an electoral cycle in monetary growth rates and…
Exit, Selection and the Value of Firms
This paper studies a competitive dynamic model with firm level uncertainty and derives implications for the distribution of firm values and Tobin’s q. Allowing for entry and exit, the model determines endogenously the degree of selection. A…
From Discrete to Continuous Time Finance: Weak Convergence of the Financial Gain Process
Conditions, suitable for applications in finance, are given for the weak convergence (or convergence in probability) of stochastic integrals. For example, consider a sequence Sn of security price processes converging in distribution to S and a…
Government Formation and Endogenous Parties
This paper provides a formal theory of government for a political system characterized by a proportional representation electoral system, a parliamentary government that exercises collective responsibility, and a government formation process.…
Information Aggregation Through Costly Political Action
This paper examines a situation where information is dispersed among the members of a society. The information is pertinent to the individuals’ voting decisions in a two candidate election that is decided by majority rule. While the incumbent is…