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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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Demand Equity and Deposit Insurance
The services provided by the liability side of banking are examined in an economy in which everyone is identical ex ante and banks are uninsured. Demand equity deposit claims are shown to provide all the service that can be provided by demand…
Determining Cross-Price Elasticities and Product-Market Structure Through the Measurement of Consumer Preference Structures
The authors develop a survey-based approach to determine the extent to which brands in a pre-specified product class compete with each other. The approach, called the prefer- ence structure measurement (PSM) procedure, uses a household survey to…
Differences Between the Careers of Women and Men Stanford MBA Graduates
Careers of Stanford MBA graduates from 1973 through 1985 were studied by questionnaire in 1987. The response rate was 56% after two mailings. The purpose was to compare the careers of female and male graduates. All female graduates in the…
Divide and Conquer: A Theory of Intraday and Day-of-the-Week Mean Effects
This paper develops a model in which patterns in buy and sell volume, order imbalances and expected price changes arise endogenously. The model covers cases where the market maker is competitive and where he is a monopolist. Our results provide…
Do Business and Economic Historians Understand Corporations?
Corporations are the preeminent capital-raising mechanism in the American economy, yet the nature of these institutions is misunderstood, if one judges by how the leading textbooks of American economic and business history explain the evolution…
A Dynamic Stochastic Model of Entry and Exit to an Industry
This paper develops and analyzes a dynamic stochastic model for a competitive industry which endogenously determines processes for entry and exit and for individual firms output and employment. The concept of stationary equilibrium is introduced…
Entry and Competition in Concentrated Markets
This paper proposes an empirical framework for measuring the effects of entry in concentrated markets. Building on models of entry in atomistically competitive markets, we show how the number of producers in an oligopolistic market varies with…
Evaluating The Effects Of Retail Promotions In Segmented Markets
Retail promotional activities such as temporary price cuts, coupons and newspaper features produce multiple effects: increases in market share for the promoted brand, increased switching to the promoting store, and increases in category volume.…
Exit from Declining Industries: "Shakeout" or "Stakeout"
Data on thirty declining chemical products are used to test theories of exit. The results offer support for two different models. The first model predicts that small firms would be most likely to exit. The second model predicts that large…
Firm-Level Productivity and Management Influence: A Comparison of U.S. and Japanese Automobile Producers
This study compares the productivity of six major U.S. and Japanese motor vehicle manufacturers-General Motors, Ford, Chrysler, Toyota, Nissan and Mazda-from the early 1950’s through 1987. Techniques of productivity measurement, conventionally…
How Much is Enough? Psychological Aspects of "Guns Versus Butter" Decisions in a Simulated Security Dilemma
The present research investigated the role of cognitive processes in decisions regarding how much to spend on security, using a laboratory simulation of a security dilemma. Two experiments are described. The first experiment examined how…
Intertemporal Arbitrage and the Markov Valuation of Securities
This paper explores the intertemporal nature of arbitrage and its connection to Markov processes. We suppose that an economy is in one of a fixed set (symbol insert) of possible states at each date. Assuming that prices and dividends are…
Liberalization in the Japanese Financial Markets
Abstract not available.
Majoritarian Incentives, Pork Barrel Programs, and Procedural Control
Abstract not available.
Memory And Evaluation Effects In Competitive Advertising Environments
A laboratory experiment examined the effects of quantitative (i.e., number) and qualitative (i.e., valence) dimensions of competitive advertising on consumer memory and evaluations. Print ads were developed to elicit predominately either a…
Myopic Replenishment Policies for Inventory Models with History-Dependent Demand Distributions
This paper considers single-item, periodic review inventory systems with linear procurement, holding and shortage costs, and immediate delivery. Immediate stock disposal with a linear disposal fee may or may not be an option. The demand in each…
Optimality of Debt Contracts for Financial Intermediaries
We first prove that the debt contract is the optimal contract between entrepreneurs and arbitrary financial intermediaries in a model where the bank faces an endogenous bankruptcy penalty (as in Diamond (1984)) - the optimality for depositors has…
Post-Entry Pricing and Vertical Integration in the Chemical Process Industries
This paper examines the magnitude of price changes following entry into markets for 30 undifferentiated chemical products. On average, prices fell by about 6% in years when entry occurred. Price cuts were roughly twice as deep when the entrant…