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Organizational Considerations for the Space Station's Development: Autonomy and the Human Element in Space
Abstract not available.
Portfolio Choice in Research and Development
Possible distortions in the choice of a mix of research and development projects in the market, where competition is subject to “winner-take-all” payoff structure, are analyzed. Attention is devoted to choices of weights on alternative “knowledge…
Practical Aspects of Portfolio Optimization
Abstract not available.
Predictable Representation of Martingale Spaces and Changes of Probability Measure
We study the predictable representations of martingale spaces under a change of probability measure. The canonical decomposition of special semi-martingales provides a simple route to the identity and cardinality of a minimal generating subset of…
Price Destabilizing Speculation
Abstract not available.
Productive and Counterproductive Cooperative Monetary Policies
Abstract not available.
Regulation of Prices and Pollution Under Incomplete Information
The regulation of prices and pollution for a regulated monopolist is considered with a focus on the comparison of standard-setting and emissions taxation approaches to pollution control. The firm is assumed to be better informed about the costs…
Risk Aversion and the Choice Between Prices and Quantities
Abstract not available.
Sales Compensation Plans: A Theory
A theory of sales compensation plans is presented where the sales for a product depends not only on the salespersons effort but also on the uncertainty in the selling environment. The firm chooses a compensation plan to maximize its profit taking…
Salesforce Compensation Plans in Environments with Asymmetric Information
In this paper, we present a theory of salesforce compensation plans to explain the type of plans implemented by IBM and St. Regis Paper where the members of the salesforce are provided an opportunity to choose a compensation scheme from a menu of…
Self-Regulating Commodity Futures Exchanges
Signaling and Imperfect Capital Markets
This paper uses a two-period signaling model of education to show that capital-market imperfections can cause underinvestment in the signal. This can happen even if the government pays all tuition bills and access to credit increases with…
A Simple Econometric Approach for Utility-Based Asset Pricing Models
Utility-based models of asset pricing may be estimated with or without assuming a distribution for security returns; both approaches are developed and compared here. The chief strength of a parametric estimator lies in its computational…
Stanford MBA Careers: A 20 Year Longitudinal Study
Our 20 year studies find that MBAs are happy, prosperous, and are moving from large to small business. On average they are either very Satisfied , or Satisfied with their jobs. Their median earnings at 20 years out in 1981, 1982, and 1983,…
Stochastic Equilibria: Existence, Spanning Number, and the "No Expected Gain from Trade" Hypothesis
Stochastic equilibria under uncertainty with continuous-time security trading and consumption are demonstrated in a general setting. The equilibrium shown has the property of no expected financial gain from trading securities. The relevance of…
Strategic Resource Extraction: When Easy Doesn't Do It
We show that, for strategic reasons, an oligopolist in a natural resource industry might employ a backstop technology to develop costly reserves even if it does not plan to exhaust all less expensive deposits. The reason is that an oligopolist…
Strategy-Making and Evolutionary Theory: Toward a Capabilities-Based Perspective
The strategic process in large, diversified firms is shown to be isomorphous to the enactment—selection—retention model of evolutionary theory. Such strategic processes are internalized selection mechanisms, nested within external environmental…
Tax, Incentive and Risk-Sharing Issues in the Allocation of Property Rights: The Generalized Lease-or-Buy Problems
This study is designed to augment the buy-versus-lease literature by incorporating (1) risk-sharing motives, (2) moral hazard-related incentive problems and their mitigation, and (3) tax considerations in the choice of how to allocate an asset’s…
Taxation and Intergovernmental Grants in a Federal Government System
The paper applies some game-theoretic and incentive arguments to the analysis of fiscal federalism. First, decentralized taxation in a setting with agents having costly opportunities to move across states is modeled as a game between state…