Publications

February 1989
Article

Buybacks, Exit Bonds, and the Optimality of Debt and Liquidity Relief

By: K. A. Froot

Keywords: Chapter 7; Debt Reduction; Default; Sovereign Debt; Debt Crisis; Debt Restructuring; Borrowing and Debt

winter 1989
Article

Split-Awards Procurement and Innovation

By: James J. Anton and Dennis A. Yao

In many procurement settings, it is possible for a buyer to split a production award between suppliers. In this article, we develop a model of split-award procurement auctions in which the split choice is endogenous. We characterize the set of equilibrium bids and... View Details

Keywords: Innovation and Invention; Auctions; Bids and Bidding; Cost; Supply Chain; Investment; Balance and Stability

August 1988
Article

Credibility, Real Interest Rates, and the Optimal Speed of Trade Liberalization

By: K. A. Froot

Keywords: International Trade; Trade Policy; Trade; Policy; Interest Rates

January 1987
Article

Posterior Implementability in a Two-person Decision Problem

By: Jerry R. Green and Jean-Jacques Laffont

When a decision rule is implemented using a Bayesian incentive compatible mechanism in which the messages are publicly observable, the players' information is augmented by their observation of each others' strategies. In this paper we study the set of Bayesian... View Details

Keywords: Incentives; Commitment; Mechanism Design; Decision Making; Information

1985
Working Paper

Sequential Innovation and Market Structure

By: Jerry R. Green and Jean-Jacques Laffont

This paper concerns the introduction of a sequence of new, higher-quality durable products in a market in which there already exists a lower-quality substitute. The product has the further attribute that a real resource cost is incurred at the time a higher-quality... View Details

December 1984
Case

Expense Tracking System at Tiger Creek

By: Shoshana Zuboff

Mill manager Carl Adelman learns that a group of senior managers is soon to visit the Tiger Creek mill to learn more about the success of the newly implemented Expense Tracking System. The System had been installed on two paper machines to give workers real time cost... View Details

Keywords: Management Teams; Success; Cost Management; Technology; Pulp and Paper Industry

Educators

December 1984
Article

An Approach for Developing an Optimal Discount Pricing Policy

By: R. Lal and Richard Staelin

Keywords: Price; Policy

October 1984
Article

Large-Scale Portfolio Optimization

By: André Perold

Keywords: Financial Instruments

June 1983
Article

A Comparison of Tournaments and Contracts

By: Jerry R. Green and Nancy Stokey

Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk-neutral principal and many risk-averse agents. Each agent's output is a stochastic function of his effort level plus an additive shock term that is... View Details

Keywords: Tournaments; Contracts

May 1983
Article

Optimality Conditions and Strong Duality in Abstract and Continuous Time Linear Programming

By: André Perold and R. Meidan

Keywords: Mathematical Methods

June 1982
Article

Optimal Sequential Investment When Capital is Not Readily Reversible

By: Carliss Y. Baldwin

Keywords: Capital

Article

Experience Curves and Dynamic Demand Models: Implications for Optimal Pricing Strategies

By: Robert J. Dolan

October 1981
Background Note

Note on Network Optimization Models (Abridged)

By: Roy D. Shapiro

Keywords: Networks

1981
Chapter

Sparsity and Piecewise Linearity in Large Portfolio Optimization Problems

By: André Perold and Harry M. Markowitz

Keywords: Investment Portfolio; Mathematical Methods

April 1980 (Revised September 1985)
Background Note

The Disposable Diaper Industry in 1974

By: Michael E. Porter

Describes the rapidly growing disposable diaper industry in 1974, a period in which Procter and Gamble's industry leadership faced strong challenges from Kimberly Clark, Johnson and Johnson, and Union Carbide. The latter two firms were in the process of entry into the... View Details

Keywords: Market Entry and Exit; Competition; Consumer Products Industry

Educators

February 1979
Background Note

Note on the Theory of Optimal Capital Structure

By: William E. Fruhan Jr.

Examines the interrelationship between the maximization of the share value of a firm's common stock and the minimization of the firm's weighted average cost of capital. Presents a revised version of a case by J.W. Mullins, Jr. View Details

Keywords: Capital Structure; Cost of Capital; Stock Shares; Core Relationships; Value

Educators

1979
Article

Approximating the Efficiency Gain of Tax Reforms

By: Jerry R. Green and Eytan Sheshinski

Proper analysis of tax reform requires evaluation of the welfare effects induced by a change from one tax system to another. We present two methods for estimating these changes using only local information pertaining to an initial equilibrium with distortive taxes. It... View Details

Keywords: Taxation; Governing Rules, Regulations, and Reforms; Change; Analysis

Article

Optimal Capital-Gains Taxation under Limited Information

By: Jerry R. Green and Eytan Sheshinski

Taxation of capital gains at realization may distort individuals' decisions regarding holding or selling during an asset's lifetime. This creates the problem of designing a tax structure for capital gains so as to induce efficient patterns of holding and selling.... View Details

Keywords: Capital Gains; Optimal Taxation; Taxation

1978
Article

On Stochastic Games with Stationary Optimal Strategies

By: Truman F. Bewley and Elon Kohlberg

Keywords: Games, Gaming, and Gambling; Strategy