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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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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…
Intraorganizational Ecology of Strategy-Making and Organizational Adaptation: Theory and Field Research I
This paper presents an intraorganizational ecological perspective on strategy-making and examines how internal selection may combine with external selection to explain organizational change and survival. The perspective saves to illuminate data…
Leadership Style and Incentives
We study the relationship between a firm’s environment and its optimal leadership style. We show that leadership style is a function of the CEO’s personality and affects the firm’s profitability. We use a model in which contracts between the firm…
Linear Compensation Rules with Dynamic Incentive Compatibility
This paper reformulates the continuous-time principal-agent model of Holmstrom and Milgrom by adding a dynamic incentive compatibility constraint. The original Holmstrom-Milgrom solution applies under this dynamic constraint, but not generally…
Liquidity, Maturity and the Yields on U.S. Treasury Securities
The effects of asset liquidity on expected returns, shown by Amihud and Mendelson (1986, 1989) for assets with infinite maturities (stocks), are examined for bonds - Treasury notes and bills with matched maturities of less than 6 months. The…
Managerial Preferences for Strategic Alliance Attributes
In an increasingly global business environment, the idea of strategic alliances has captured the imagination of marketing strategists. Yet, while much anecdotal wisdom exists on what makes a good or bad alliance, there are no broad-sample studies…
Marital Status and MBA Careers
Marital status appears to have made significant differences in the careers of Stanford MBAs. Marriage helps the careers of men and hurts the careers of women. This is a study of how women MBAs have done in comparison to their male classmates.
Marketing in Turbulent Environments: Decision Processes and the Time-Value of Information
This paper studies the relationship between information-processing, marketing decisions and performance in turbulent markets — i.e., markets in which the time-value of information is a major factor in decision-making. Drawing on both…