Publications

The widespread existence of cooperation is difficult to explain because individuals face strong incentives to exploit the cooperative tendencies of others. In the research reported here, we examined how the spread of reputational…

Decision makers often simplify decision problems by ignoring readily available information. The current multimethod research investigated which types of information about interdependence situations are psychologically prominent to decision makers…

Many believe that the selection of the CEO is the most important decision that a board can make. Why aren’t more companies prepared for a change at the top?

Over the last few years, a growing number of companies have put increased attention on issues related to social and environmental responsibility. As part of this trend, they have been gradually moving away from sole reliance on audits, and…

This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. We start with an overview of theoretical research, which casts financial knowledge as a form of investment in human capital. Endogenizing…

We argue and demonstrate that resource allocation within firms’ internal capital markets provides an important force countervailing financial market dislocation. We estimate a structural model of internal capital markets to separately identify…

We answer the following question: At t = 1, an expert has (probabilistic) information about a random outcome X. In addition, the expert will obtain further information about X as time passes, up to some time t = T + 1 at which X will be publicly…

This CEO succession study shows shortfalls in C-suite talent development and succession planning.

Rumors and speculation abound when it comes to discussions about CEO succession at high-profile companies such as Ford, Proctor…

This paper examines the impact of the conglomerate form on the scale and novelty of corporate Research and Development (R&D) activity. I exploit a quasi-experiment involving failed…

We argue that internal capital market imperatives of business groups i.e., reallocation of capital across group firms, influences an affiliated firm’s dividend policy. Intuition is developed in a model in which business group insiders distribute…

This paper develops a game-theoretic model based on a two-sided market framework to compare Internet service providers’ (ISPs) investment incentives, content providers’ (CPs) participation, and social welfare between neutral and non-neutral…

This article studies the full equilibrium dynamics of an economy with financial frictions. Due to highly nonlinear amplification effects, the economy is prone to instability and occasionally enters volatile crisis episodes. Endogenous risk,…

What explains the relative persistence of same-race romantic relationships? One possible explanation is structural – this phenomenon could reflect the fact that social interactions are already stratified along racial lines – while another…

We calculate increases in contributions required to achieve full funding of state and local pension systems in the United States over 30 years. Without policy changes, contributions would have to increase by 2.5 times, reaching 14.1 percent of…

We use an extensive data set of bilateral exposures on credit default swap (CDS) to estimate the impact on collateral demand of new margin and clearing practices and regulations. We decompose collateral demand for both customers and dealers into…

We reexamine the classic yet static information asymmetry model of Myers and Majluf (1984) in a fully dynamic market. A firm has access to an investment project and can finance it by debt or equity. The market learns the quality of the firm over…

This paper studies a dynamic communication game in which the seller of an asset, whose credibility is unknown to the market, reports changes in the asset value during multiple periods before selling the asset. We characterize the strategy by…

This paper analyzes how the audience for internet news varies with the source of the referral, comparing the audience when users navigate directly to news outlets to that when users are referred by social media. On average, the audience referred…