Publications

The television game show The Price Is Right is used as a laboratory to conduct a preference-free test of rational decision theory in an environment with substantial economic incentives. It is found that contestants’ strategies are transparently…

We propose that competitive success and failure evolve through an ecology of organizational learning. An organization facing competition is likely to engage in a search for ways to improve performance. When successful, this search results in…

This article develops an equilibrium framework for strategic option exercise games. I focus on a particular example: the timing of real estate development. An analysis of the equilibrium exercise policies of developers provides insights into the…

In 1990 the Federal Government included a Most Favored Customer (MFC) clause in the contract (OBRA 90) which would govern the prices paid to firms for pharmaceutical products supplied to Medicaid recipients. The firms had to give Medicaid their “…

Do laterally diversifying firms outlast new startups? Or does organizational inertia give the advantage to startups? We explore these questions here using the experiences of American automobile manufacturers from 1885 through 1981. We advance and…

We construct a non-cooperative dynamic model of time and surplus allocation between partners in a marriage. Partners must choose between allocating time to household public goods production or career activities, and both activities exhibit…

Part ownership of a takeover target can help a bidder win a takeover auction, often at a low price. A bidder with a “toehold” bids aggressively in a standard ascending auction because its offers are both bids for the remaining shares and asks for…

In this paper we study the effects of transaction costs on asset prices in an overlapping generations economy with a riskless and liquid bond and N risky stocks whose trading is subject to proportional costs. Quite surprisingly, the price of a…

There is an old nursery rhyme about a little girl: When she was good, she was very, very good, and when she was bad, she was horrid. Collaborative relationships between faculty members and doctoral students can also be very good or they can be—…

We live in an organizational world. Most of us are born in an organization (a hospital) and our very existence is ratified by government agency that issues a certificate documenting our birth. When we die, a death certificate will be issued by…

The purpose of this study is to investigate when director interlocks affect corporate behavior, and how much influence they exert, by studying the conditions under which their influence varies. Existing theory supports the view that interlocks…

This paper presents a consistent and arbitrage-free multifactor model of the term structure of interest rates in which yields at selected fixed maturities follow a parametric muitivariate Markov diffusion process with “stochastic volatility.” the…

Many researchers, following Kenneth Arrow’s lead, have concerned themselves with stating various desirable or undesirable criteria and attempting to classify vote-counting systems. This paper moves away from theoretical discussions: the authors…

This article studies several attributes of a firm’s long-run decisions about organizational structure, attributes that affect the firm’s short-run innovative activity. We focus on flexibility, which lowers the future costs of implementing…

A social preparation framework was used to examine how social cues and intergroup relations affect social judgment and behavior in negotiation. In Experiment 1, subjects negotiated and then learned that their opponent felt happy/…

We consider a single-product firm in which arriving orders are processed by an information processing system before being downloaded to the production system. The design problem is to choose the appropriate processing and control technologies for…