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Nonrecursive Dynamic Incentives: A Rate of Convergence Approach
In repeated principal-agent problems and games, more outcomes are implementable when performance signals are privately observed by a principal or mediator with commitment power than when the same signals are publicly observed and form the basis…
On the Power of Delayed Flexibility: Balls, Bins, and a Few Opaque Promotions
Effective load balancing lies at the heart of many applications in operations. Frequently tackled via the balls-into-bins paradigm, seminal results established the power of two choices in load balancing: a limited amount of costly flexibility…
Optimizing Animation Speed: Convex Effects on Perceived Waiting Time and Digital Customer Experience
Incidental waits are an unavoidable element of the consumer experience on any digital platform. Firms typically utilize no animation or single-speed, repeated animations during these waits. How might the use of such animations and their visual…
Policy Brief: Generative Artificial Intelligence: Opportunities for the Future of Work in Chile
We study the impact of Generative Artificial Intelligence (GenAI) in Chile, focusing on opportunities for task acceleration-specifically, the reduction of execution time for tasks within the hundred most common jobs in the country, corresponding…
Power as a Moral Magnifier: Moral Outrage is Amplified when the Powerful Transgress
Moral outrage in response to scandals involving powerful figures has become commonplace in modern life. These instances suggest that moral outrage may be disproportionately directed upward toward those with power over others. However, it remains…
Price Experimentation and Interference
In this paper, we examine biases arising in A/B tests where firms modify a continuous parameter, such as price, to estimate the global treatment effect of a given performance metric, such as profit. These biases emerge in canonical experimental…
Putting Economics Back into Geoeconomics
Geoeconomics is the use of a country’s economic strength to exert influence on foreign entities to achieve geopolitical or economic goals. We discuss how concepts of power in the political science and economics literature can be used to guide…
Sexual Orientation and Vocational Interests Across 48 Countries: The Moderating Effect of Cultural Tightness-Looseness
Vocational interests are an important factor in individuals’ career choice and development. However, current understanding about the vocational interests of sexual minorities is underdeveloped. Using data from 31,348 men and 59,715 women (N = 91,…
Strategic Trading and Blockholder Dynamics
We study strategic trading by a blockholder who may both monitor a firm and trades its shares over time. We study the effects of the blockholder having access to private information. In the presence of private information, the blockholder faces…
Switchback Price Experiments with Forward-Looking Demand
We consider a retailer running a switchback experiment for the price of a single product, with infinite supply. In each period, the seller chooses a price from a set of predefined prices that consist of a reference price and a few discounted…
Tax Avoidance as an R&D Subsidy: The Use of Cost Sharing Agreements by US Multinationals
We use administrative corporate tax data from the IRS to study a particular form of tax avoidance for US multinational corporations (MNCs). This strategy relies on cost sharing agreements (CSAs), which govern joint R&D efforts conducted with…
The Geography of Capital Allocation in the Euro Area
We assess Euro Area financial integration correcting for the role of “onshore offshore financial centers” (OOFCs) within the currency union. The OOFCs of Luxembourg, Ireland, and the Netherlands serve dual roles as hubs of investment fund…
The History of Social Psychology: Four Enduring Tensions
No abstract available.
The Screening Role of Covenant Heterogeneity
We investigate whether the mix of financial covenants in debt contracts allows lenders to screen borrowers based on their private information about their future risk-taking intentions. Consistent with adverse selection theories, we predict and…
The Systems Leader
Since the start of this century, businesses have confronted a series of extreme and constant disruptions, including technological upheavals, a pandemic, and a global financial crisis. As a result, today’s leaders, from startup founders to the…
The Valuation of a Dynamic Litigation Process: The Lawsuit as a (Real) Option on an Option
We solve a multi-stage real options model of litigation that embeds extant frameworks from the literature. The characterization of filing a lawsuit as a compound option permits a novel analysis of real-world phenomena. Heightened…
When Does Interference Matter? Decision-Making in Platform Experiments
This paper investigates decision-making in A/B experiments for online platforms and marketplaces. In such settings, due to constraints on inventory, A/B experiments typically lead to biased estimators because of interference; this phenomenon has…
Whispers in Your Mind: The Role of Voice Features in Customer Acquisition and Retention
While most marketing studies have focused on what salespeople say, less is known about the persuasiveness of how they say it, particularly in the distinct contexts of customer acquisition and retention. This research investigates how salespeople’…
Online Algorithms for Matching Platforms with Multichannel Traffic
Two-sided platforms rely on their recommendation algorithms to help visitors successfully find a match. However, on platforms such as VolunteerMatch, which has facilitated millions of connections between volunteers and nonprofits, a sizable…
How Does Internal Communication Technology Affect Internal Information: Theory and Evidence
We study how enhanced internal communication technology influences firms’ internal information production. By developing a model with a headquarters manager and several divisional managers, we formalize two competing economic forces—information…