Working Papers

These papers are working drafts of research which often appear in final form in academic journals. The published versions may differ from the working versions provided here.

Yuliy Sannikov, Andrzej Skrzypacz
December 7, 2016

We build a linear-quadratic model to analyze trading in a market with private information and heterogeneous agents. Agents receive private taste/inventory shocks and trade continuously. Agents differ in their need for trade as well as...

Martin Gaynor, Carol Propper, Stephan Seiler
December 2016

The impacts of choice in public services are controversial.  We exploit a reform in the English National Health Service to assess the impact of relaxing constraints on patient choice. We estimate a demand model that...

Stefan J. Reichelstein, Ansu Sahoo
December 2016

A basic tenet of microeconomics is that for a competitive industry in equilibrium the market price of a product will be equal to its marginal cost. This paper develops a model framework and a corresponding...

Jonathan B. Berk, Cambell R. Harvet, David A. Hirshleifer
November 29, 2016

Drawing on insights of current and past editors of top economics and finance journals, we provide guidelines for reviewers in preparing referee reports and cover letters for journals. Peer review is fundamental to the progress...

Kostas Bimpikis, Ozan Candogan, Daniela Saban
November 11, 2016

We explore spatial price discrimination in the context of a ride-sharing platform that serves a network of locations. Riders at different locations are heterogeneous in terms of their destination preferences, as captured by the demand pattern of the underlying network. Drivers decide whether,...

Elizabeth Blankespoor, Ed deHaan, Christina Zhu
November 7, 2016

In 2014, the Associated Press (AP) began using algorithms to write media articles about firms’ earnings announcements. These “robo-journalism” articles synthesize information from firms’ press releases, analyst reports, and stock performance, and are widely disseminated...

Michal Kosinski, Yilun Wang, Himabindu Lakkaraju, Jure Leskovec
October 17, 2016

Over the past decade, online social media has had a tremendous impact on the way people engage in social activism. For instance, about 26M Facebook users expressed their support in upholding the cause of marriage...

Navdeep S. Sahni, Sridhar Narayanan, Kirthi Kalyanam
October 14, 2016

In collaboration with BuildDirect.com, an online seller of home-improvement products, we conduct a large-scale randomized field experiment to study the effects of retargeted advertising – a form of internet advertising in which banner ads are...

Anat R. Admati, Peter M. DeMarzo, Martin F. Hellwig, Paul Pfleiderer
October 11, 2016

Firms’ inability to commit to future funding choices has profound consequences for capital structure dynamics. With debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions may enhance firm value. Shareholders...

Darrell Duffie, Piotr Dworczak, Haoxiang Zhu
September 20, 2016

We analyze the role of benchmarks in over-the-counter markets subject to search frictions. The publication of a benchmark can, under conditions, raise total social surplus by (i) increasing the volume of beneficial trade, (ii) reducing...

Iván Marinovic, Andrzej Skrzypacz, Felipe Varas
September 15, 2016

We study firm’s incentives to build and maintain reputation for quality, when quality is persistent and can be certified at a cost. We characterize all Markov-perfect equilibria where the timing of certification and investment depend...

Lisa De Simone, Richard Sansing
September 1, 2016

This study investigates the use of a cost sharing arrangement (CSA) by multinational corporations (MNCs) to shift the income attributable to valuable intellectual property (IP) to low-tax foreign jurisdictions. Using a strategic tax compliance model,...

Yash Kanoria, Daniela Saban, Jay Sethuraman
September 2016

We consider a two-sided assignment market with agent types and a stochastic structure, similar to models used in empirical studies. We characterize the size of the core in such markets. Each agent has a randomly...

Stephen D. Comello, Stefan J. Reichelstein
September 2016

The policy of net metering allows operators of residential- and commercial solar PV systems to sell surplus electricity back to their utility at the going retail rate. This policy has recently been criticized on the...

John Ameriks, Joseph Briggs, Andrew Caplin, Matthew D. Shapiro, Christopher Tonetti
September 2016

Individuals face significant late-in-life risks, including needing long-term care (LTC). Yet, they hold little long-term care insurance (LTCI). Using both “strategic survey questions,” which identify preferences, and stated demand questions, this paper investigates the degree...

Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
September 2016

This paper examines the relation between political connections and informed trading by corporate insiders in the context of the Financial Crisis. The unprecedented magnitude of government intervention, the substantial impact of this intervention on firm...

Rebecca Lester, Dominika Langenmayr
August 26, 2016
Saumitra Jha, Moses Shayo
August 26, 2016

Financial markets expose individuals to the broader economy. Does participation in financial markets also lead citizens to re-evaluate the costs of conflict, their views on politics and even their voting decisions? Prior to the 2015...