Publications

November 2011
Article

Competing Matchmakers: An Experimental Analysis

By: Tanjim Hossain, Dylan B. Minor and John Morgan

Platform competition is ubiquitous, yet platform market structure is little understood. Theory models typically suffer from equilibrium multiplicity—platforms might coexist or the market might tip to either platform. We use laboratory experiments to study the outcomes... View Details

Keywords: Platform Competition; Two-Sided Markets; E-commerce; Competition; Two-Sided Platforms; Monopoly

Research Summary

Equity Valuation

By: Charles C.Y. Wang

Professor Wang’s research utilizes valuation theory to explain how firm fundamentals are related to the expected rates of equity returns and their term structures. His research provides strong evidence that valuation-based proxies of expected returns outperform the... View Details

Research Summary

Do Equity Covariances Reflect Financial Leverage?

No arbitrage option pricing theory and the efficient market hypothesis predict that firms with higher financial leverage should have higher equity betas, all else equal. This paper finds little support in the data for this prediction. Within industry, there is large... View Details

Research Summary

Risk Measurement

By: David E. Bell

David E. Bell has completed research on the measurement of financial risk. The concepts of risk and return are widely used, at least informally, in the appraisal of financial opportunities. Return is typically measured by the expected value of a project, risk by the... View Details

11 Sep 2008
Working Paper Summaries

Competing Complements

Keywords: by Ramon Casadesus-Masanell, Barry Nalebuff & David B. Yoffie

Article

Price and Quality Decisions by Self-Serving Managers

By: Marco Bertini, Daniel Halbheer and Oded Koenigsberg

We present a theory of price and quality decisions by managers who are self-serving. In the theory, firms stress the price or quality of their products, but not both. Accounting for this, managers exploit any uncertainty about the cause of market outcomes to credit... View Details

Keywords: Causal Reasoning; Self-serving Bias; Strategic Orientation; Managerial Decision-making; Price; Quality; Decision Making; Theory

2007
Working Paper

Evidence from Goodwill Non-impairments on the Effects of Unverifiable Fair-Value Accounting

By: Karthik Ramanna and Ross L. Watts

SFAS 142 requires firms to use unverifiable fair-value estimates to determine goodwill impairments. Standard setters suggest managers will use the discretion given by such estimates to convey private information on future cash flows, while agency theory predicts... View Details

Keywords: Fair Value Accounting; Goodwill Accounting; Standards; Agency Theory

SSRN

2014
Chapter

Negotiation Processes as Sources of (and Solutions to) Interorganizational Conflict

By: Elizabeth Long Lingo, Colin Fisher and Kathleen L. McGinn

We investigate how structural features of negotiations can affect interaction processes and how negotiations can be not only a solution to, but also a source of, inter-organizational conflict. Principals, agents, and teams face different sets of constraints and... View Details

Keywords: Negotiation; Conflict; Organizational Management; Organizations; Conflict Management; Negotiation Process; Theory

March 2022
Article

Loan Types and the Bank Lending Channel

By: Victoria Ivashina, Luc Laeven and Enrique Moral-Benito

Using credit-registry data for Spain and Peru, we document that four main types of commercial credit—asset-based loans, cash flow loans, trade finance and leasing—are easily identifiable and represent the bulk of corporate credit. We show that credit growth dynamics... View Details

Keywords: Bank Credit; Loan Types; Bank Lending Channel; Credit Registry; Banks and Banking; Credit; Financing and Loans

2020
Working Paper

Design in the Age of Artificial Intelligence

By: Roberto Verganti, Luca Vendraminelli and Marco Iansiti

Artificial Intelligence (AI) is affecting the scenario in which innovation takes place. What are the implications for our understanding of design? Is AI just another digital technology that, akin to many others, will not significantly question what we know about... View Details

Keywords: Artificial Intelligence; Design Thinking; Technological Innovation; Design; Change; Theory; AI and Machine Learning

November 2009
Article

Responding to Public and Private Politics: Corporate Disclosure of Climate Change Strategies

By: Erin Marie Reid and Michael W. Toffel

The challenges associated with climate change will require governments, citizens, and firms to work collaboratively to reduce greenhouse gas emissions, a task that requires information on companies' emissions levels, risks, and reduction opportunities. This paper... View Details

Keywords: Climate Change; Problems and Challenges; Pollutants; Risk and Uncertainty; Business and Shareholder Relations; Management Practices and Processes; Social Issues; Corporate Disclosure; Values and Beliefs; Governing Rules, Regulations, and Reforms; Government and Politics

15 Nov 2016
Working Paper Summaries

Algorithmic Foundations for Business Strategy

Keywords: by Mihnea Moldoveanu

2021
Working Paper

The Incidence of the Corporate Income Tax Is Irrelevant for Its (Benefit-Based) Justification

By: Matthew C. Weinzierl

Robust support for corporate income taxation is a puzzle for standard tax theory because the tax’s incidence is uncertain and unreliable. We propose a resolution: if the corporate tax is seen as a benefit-based tax, its normative appeal depends on the correspondence... View Details

Keywords: Corporate Income Tax; Benefit-based Taxation; Business Ventures; Taxation

March 2000
Article

The Duality of Collaboration: Inducements and Opportunities in the Formation of Interfirm Linkages

By: Gautam Ahuja

I argue that the linkage-formation propensity of firms is explained by simultaneously examining both inducement and opportunity factors. Drawing upon resource-based and social network theory literatures I identify three forms of accumulated... View Details

Keywords: Collaboration; Innovation; Networks; Strategy; Alliances; Social and Collaborative Networks; Innovation and Invention; Chemical Industry

2013
Working Paper

Applying Random Coefficient Models to Strategy Research: Testing for Firm Heterogeneity, Predicting Firm-Specific Coefficients, and Estimating Strategy Trade-Offs

By: Juan Alcacer, Wilbur Chung, Ashton Hawk and Goncalo Pacheco-de-Almeida

Although Strategy research aims to understand how firm actions have differential effects on performance, most empirical research estimates the average effects of these actions across firms. This paper promotes Random Coefficients Models (RCMs) as an ideal empirical... View Details

Keywords: Strategy; Mathematical Methods

SSRN

2009
Working Paper

Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets?

By: Shawn A. Cole, Thomas Sampson and Bilal Zia

Financial development is critical for growth, but its micro-determinants are not well understood. We test leading theories of low demand for financial services in emerging markets, combining novel survey evidence from Indonesia and India with a field experiment. We... View Details

Keywords: Banks and Banking; Saving; Knowledge Acquisition; Emerging Markets; Motivation and Incentives; Financial Services Industry; India; Indonesia

June 2002
Case

"One Country, Two Systems"? Italy and the Mezzogiorno (B)

By: Bruce R. Scott and Jamie Matthews

In 1992, a corruption investigation and two assassinations created a crisis that prompted the Italian government to dispatch 7,000 troops to Sicily to "retake the island" from the Mafia. This case examines the crisis and the efforts of both the Italian state and the... View Details

Keywords: History; National Security; Crime and Corruption; Economic Slowdown and Stagnation; Italy

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