Publications

This paper considers a principal-agent variant of the classical make-to-stock single-server queueing system. The principal incurs all costs for holding inventory and backordering demand. The agent dynamically controls the production rate at the…

This paper analyzes the effects of business cycle volatility on measures of subjective well-being, including self-reported happiness and life satisfaction. I find robust evidence that high inflation and, to a greater extent, unemployment lower…

When Less Developed Countries (LDCs) announce debt relief agreements under the Brady Plan, their stock markets appreciate by an average of 60 percent in real dollar terms, a $42 billion increase in shareholder value. In contrast, there is no…

The present research examines episodes of favor exchange among peer employees. We posit that favor receivers’ and favor givers’ commitment to their exchange relationships with one another will be accounted for by…

Turmoil in financial markets is often accompanied by a significant decrease in market liquidity. Here, we investigate how such key risk measures as likelihood of insolvency, value at risk, and expected tail loss respond to bid–ask spreads that…

The use of modern microeconomics in policy is illustrated by the markets for spectrum, electricity, greenhouse-gas reductions, defense procurement, and Treasury bills. Further examples are antitrust divestiture rules, market-based redistribution…

We provide an approach to the market valuation of deposit insurance that is based on reduced-form methods for the pricing of fixed-income securities under default risk. By reference to bank debt prices as well as qualitative-response models of…

We analyze a multiproduct duopoly and ask whether firms should offer general purpose products or tailor their offerings to fit specific consumer needs. There are two effects of offering a targeted product: (i) if a consumers favorite product is…

We develop a model in which firms set their salary levels before matching with workers. Wages fall relative to any competitive equilibrium while profits rise almost as much, implying little inefficiency. Furthermore, the best firms gain the most…

To understand the contemporary state of organizational culture theory and research, it is necessary to grapple with some of the major intellectual disputes that have swept through the humanities and social sciences in recent years. Some…

We construct a model for pricing sovereign debt that accounts for the risks of both default and restructuring, and allows for compensation for illiquidity. Using a new and relatively efficient method, we estimate the model using Russian dollar-…

Consider a high-volume assemble-to-order system with multiple products and components in which component production can be expedited at some additional cost. The objective is to maximize expected discounted profit subject to assembling orders…

We propose a boundedly rational model of opinion formation in which individuals are subject to persuasion bias; that is, they fail to account for possible repetition in the information they receive. We show that persuasion bias implies the…

This article examines how power influences behavior. Elevated power is associated with increased rewards and freedom and thereby activates approach-related tendencies. Reduced power is associated with increased threat, punishment, and social…

Two studies examine complementarity (vs. mimicry) of dominant and submissive nonverbal behaviors. In the first study, participants interacted with a confederate who displayed either dominance (through postural expansion) or submission (through…

This study investigates the relation between share price and stock-based compensation expense that is disclosed but not recognized under SFAS 123, after controlling for net income, equity book value, and expected earnings growth. Our instrumental…

In an assemble-to-order system, a wide variety of products are rapidly assembled from component inventories, in response to customer orders. Orders must be filled within a product-specific target leadtime. In the event that some of the…

We examine how experiential learning affects organizational change and its consequences on firm mortality. We develop hypotheses about the interactions of experiences with a specific type of organizational change on the one hand, and…

This paper proposes that strategy-making processes can be fruitfully integrated with evolutionary organization theory. An evolutionary research lens comprising three interrelated conceptual frameworks helps identify and analyze the role of…

This chapter explains the logic of structural econometric models and compares them to other types of econometric models. We provide a framework researchers can use to develop and evaluate structural econometric models. This framework pays…