Publications

Most entrepreneurs emanate from established firms, but the impact of these employment histories on entrepreneurial outcomes is poorly understood. We argue that work experiences in the prior firm shape both the entrepreneur’s competence in and…

We study corporate bond default rates using an extensive new data set spanning the 1866–2008 period. We find that the corporate bond market has repeatedly suffered clustered default events much worse than those experienced during the Great…

Counterfactual thoughts typically take the form of implied or explicit if–then statements. We propose that the multiplicative combination of “if likelihood” (the degree to which the antecedent condition of the counterfactual is perceived to be…

Although a substantial amount of research has examined the constructs of warmth and competence, far less has examined how these constructs develop and what benefits may accrue when warmth and competence are cultivated. Yet there are positive…

We investigate whether individual experiences of macroeconomic shocks affect financial risk taking, as often suggested for the generation that experienced the Great Depression. Using data from the Survey of Consumer Finances from 1960 to 2007, we…

Discretion in Managerial Bonus Pools synthesizes and integrates a growing literature that has emerged over the past 10-15 years on the use of both objective and subjective performance indicators in managerial incentive plans. The authors examine…

Why do organizations generally lose their competitive edge as they get older? Recent theory and research on the dynamics of audiences and categories in markets sheds some new light on issues of organizational obsolescence.

Under Rate-of-Return regulation, a firm’s product prices are constrained by the requirement that investors do not earn more an allowable return on the firm’s assets. This paper examines the dynamic properties of the Rate-of-Return regulation…

The U.S. medical malpractice liability system has two principal objectives: to compensate patients who are injured through the negligence of healthcare providers and to deter providers from practicing negligently. In practice, however, the system…

In an increasingly risky and globalized marketplace, people must be able to make well-informed financial decisions. New international research demonstrates that financial illiteracy is widespread in both well-developed and rapidly changing…

We examine households’ financial fragility by looking at their capacity to come up with $2,000 in 30 days. Using data from the 2009 TNS Global Economic Crisis Study, we document that approximately one-quarter of U.S. respondents are certain they…

his authoritative, comprehensive, and accessible volume by leading global experts provides a broad overview of marketing strategy issues and questions, including its evolution, competitor analysis, customer management, resource allocation,…

This chapter develops a unified modeling framework for analyzing the strategic behavior of forecasters. The theoretical model encompasses reputational objectives, competition for the best accuracy, and bias. Also drawing from the extensive…

Empirical evidence about the relation between organizational age and failure is mixed, and theoretical explanations are conflicting. We show that a simple model of organizational evolution can explain the main patterns of age dependence and…