Publications

In this paper we study the effects of transaction costs on asset prices. We assume an overlapping generations economy with two riskless assets. The first asset is liquid while the second asset carries proportional transaction costs. We show that…

We advocate studying strategic management from an evolutionary perspective: using dynamic, path-dependent models that allow for possibly random variation and selection within and among organizations. We argue that this perspective directs our…

The meaning of an experimental result depends on the experiment’s conceptual backdrop, particularly its null hypothesis. This observation provides the basis for a functional interpretation of belief in the base rate fallacy. On this…

This paper examines factors related to environmental liability disclosure decisions for firms in industries with substantial Superfund site involvement. We hypothesize that the extent of disclosure about environmental liabilities is associated…

A significant strand of research on the job-person matching process has focused on the role of social networks in the hiring process. Past empirical studies of the comparative effectiveness of recruiting sources for getting jobs have started with…

This paper investigates the fit between strategy and structure for a decentralized global firm that may organize along product and geography dimensions. Organization serves two purposes. First, it provides for the management of spillovers across…

We construct a rational expectations model in which aggregate growth alternates between a low growth and a high growth state. When all agents expect growth to be slow, the returns on investment are low and little investment take place. This slows…

Social costs created by delay in the resolution of legal disputes have motivated an extensive theoretical literature studying the causes of delay. However, much less work has investigated a related, more policy-relevant question: how do legal…

We synthesize and extend research exploring differences between U.S. and other countries’ Generally Accepted Accounting Principles (GAAP) by investigating whether differences between domestic and U.S. GAAP for U.S.-listed U.K., Australian, and…

In this study, we explore the issue of how and when firms respond to other firms’ experience with a given practice or structure. Existing theory has emphasized two ways this occurs: (1) firms tend to adopt practices that most other firms have…

We present a new methodology for studying the problem of intra-firm bargaining, based on the notion that contracts cannot commit the firm and its agents to wages and employment. We develop and analyze a general non-cooperative multilateral…

Abstract not available.

Formal theories of the internal organization of legislature have mainly focused on the United States Congress. While these models have been successful in showing why committee systems should emerge in Congress, they fail to explain the variance…

Recent work in marketing has drawn on behavioral decision theory to advance the notion that consumers evaluate attributes not just in absolute terms, but as deviations from a reference point. Using scanner panel data, choice modelers have…

Selling information that is later used in decision making constitutes an increasingly important business in modern economies (Jensen 1991). Information is sold under a large variety of forms: industry reports, consulting services, database access…

This paper presents a theory of the internal organization of a decentralized firm that operates along more than one dimension; e.g., a multiproduct firm that operates along more than one dimension; e.g. a multiproduct firm that operates in more…

Drawing primarily on neoinstitutional and learning theories, we distinguish three distinct modes of selective interorganizational imitation: frequent imitation, where organizations copy very common practices; trait imitation, where organizations…

Trading the same security in more than one market, commonly known as multimarket trading, is becoming an increasingly widespread phenomenon both across and within countries. For example, the London Stock Exchange, the third largest stock market…