Publications

Many startup companies go through the so-called “entrepreneurial crisis” when they reach a headcount somewhere between 50 and 100 employees. At this point, the CEO and her team have to transition from a personal to a professional management style…

Drawing on distinctiveness and social identity theories, the present studies tested whether minority opinion holders would have a more clearly defined sense of self than majority opinion holders. In Study 1, participants who were induced to…

The present study examines the relationship between racial prejudice and reactions to President Barack Obama and his policies. Before the 2008 election, participants’ levels of implicit and explicit anti-Black prejudice were measured. Over the…

Across four studies we demonstrate that people in a position to provide help tend to underestimate the role that embarrassment plays in decisions about whether or not to ask for help. As a result, potential helpers may overestimate the likelihood…

This study examines the use of performance-based incentives for internal monitors (general counsel and chief internal auditor) and whether these incentives impair monitors independence by aligning their interests with the interests of those being…

We embed a structural model of credit risk inside a dynamic continuous-time consumption-based asset pricing model, which allows us to price equity and corporate debt in a unified framework. Our key economic assumptions are that the first and…

A central question surrounding the current subprime crisis is whether the securitization process reduced the incentives of financial intermediaries to carefully screen borrowers. We examine this issue empirically using data on securitized…

We study the “percolation” of information of common interest through a large market as agents encounter and reveal information to each other over time. We provide an explicit solution for the dynamics of the cross-sectional distribution of…

Using a large sample of individual investor records over a nine-year period, we analyze survival rates, the disposition effect, and trading performance at the individual level to determine whether and how investors learn from their trading…

We utilize a qualitative study of 33 employees in for-profit and non-profit organizations to elaborate theory on job crafting. We specifically focus on how employees at different ranks describe perceiving and adapting to challenges in the…

The selection of political representatives depends on the political system. Principals, such as voters or districts, may benefit by strategically electing representatives different from themselves. While a status-quo biased delegate may be a…

The non-tradability of human capital is often cited for the failure of traditional asset pricing theory to explain agents’ portfolio holdings. In this paper we argue that the opposite might be true | traditional models might not be able to…

We show how being “jilted”-that is, being thwarted from obtaining a desired outcome-can concurrently increase desire to obtain the outcome, but reduce its actual attractiveness. Thus, people can come to both want something more and like it less.…

This study examines European stock market reactions to 16 events associated with the adoption of International Financial Reporting Standards (IFRS) in Europe. European IFRS adoption represented a major milestone toward financial reporting…

We develop a game-theoretic model that identifies conditions under which a political executive will be satisfied with the actions of an appointee who decides whether to investigate possible legal violations. Because investigations are a…

This paper explores the influence of social categories on the perceived trade-off between a relatively bad but equal distribution of resources between two parties and a profit maximizing yet unequal one. Studies 1 and 2 showed that people prefer…

Consumers often resolve tradeoffs in a particular order. For example, when making flavor and size decisions, consumers might first decide which flavors to choose, and then decide.

We introduce and study two-sided matching with incomplete information and interdependent valuations on one side of the market. An example of such a setting is a matching market between colleges and students in which colleges receive partially…

In a standard incomplete markets model with a continuum of households that have constant relative risk aversion (CRRA) preferences, the absence of insurance markets for idiosyncratic labor income risk has no effect on the premium for aggregate…

In this article, we report results from a new study that surveyed a large, national sample of American adults about their willingness to pay for health reform. As in previous work, we find that self-identified Republicans, older Americans, and…