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- All HBS Web (345)
- Faculty Publications (200)
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- November 2007
- Background Note
Asset Allocation I
By: Joshua D. Coval, Erik Stafford, Rodrigo Osmo, John Jernigan, Zack Page and Paulo Passoni
The goal of these simulations is to understand the mathematics of mean-variance optimization and the equilibrium pricing of risk if all investors use this rule with common information sets. Simulation A focuses on five to 10 years of monthly sector returns that are... View Details
- Article
Two-Sided Platforms: Product Variety and Pricing Structures
By: Andrei Hagiu
This paper provides a new modeling framework to analyze two-sided platforms connecting producers and consumers. In contrast to the existing literature, indirect network effects are determined endogenously, through consumers' taste for variety and producer competition.... View Details
Keywords: Pricing Structure; Indirect Network Effects; Product Variety; Price; Network Effects; Two-Sided Platforms; Product; Renting or Rental; Competition
Hagiu, Andrei. "Two-Sided Platforms: Product Variety and Pricing Structures ." Journal of Economics & Management Strategy 18, no. 4 (Winter 2009).
- February 2009
- Article
Optimal Reserve Management and Sovereign Debt
By: Laura Alfaro and Fabio Kanczuk
Most models currently used to determine optimal foreign reserve holdings take the level of international debt as given. However, given the sovereign's willingness-to-pay incentive problems, reserve accumulation may reduce sustainable debt levels. In addition, assuming... View Details
Keywords: Borrowing and Debt; Motivation and Incentives; Decisions; Emerging Markets; Balance and Stability; Earnings Management; Policy; Interest Rates; International Finance; Cost
Alfaro, Laura, and Fabio Kanczuk. "Optimal Reserve Management and Sovereign Debt." Journal of International Economics 77, no. 1 (February 2009): 23–36. (Also Harvard Business School Working Paper, No. 07-010, 2006 and NBER Working Paper No. 13216.)
- September 2004
- Article
Trust in Agency
Existing models of the principal-agent relationship assume the agent works only under extrinsic incentives. However, many observed agency contracts take the form of a fixed payment. For such contracts to succeed, the principal must trust the agent to work in the... View Details
Keywords: Trust; Agency Theory; Relationships; Behavior; Motivation and Incentives; Contracts; Business Model; Emotions; Forecasting and Prediction; Ethics; Standards; Risk and Uncertainty
Casadesus-Masanell, Ramon. "Trust in Agency." Journal of Economics & Management Strategy 13, no. 3 (September 2004): 375–404.
- Research Summary
Information Effects of Jump Bidding in English Auctions (with Dror Lellouche)
Under what circumstances might a bidder find it rational to raise the current offer by a substantial factor instead of making just a small increase above the highest bid? This paper aims to answer this question by exploring the implications of jump bidding over the... View Details
- 2021
- Working Paper
Competitive Two-Part Tariffs
By: Jorge Tamayo and Guofu Tan
We study competitive two-part tariffs in a model of asymmetric duopoly firms that offer (vertically and horizontally) differentiated products. We show that the sign of the markup for each product depends on the average expected demand among all customers as well as the... View Details
Keywords: Product Differentiation; Two-part Tariffs; Marginal-cost Pricing; Cross-subsidization; Competition; Price
Tamayo, Jorge, and Guofu Tan. "Competitive Two-Part Tariffs." Harvard Business School Working Paper, No. 21-089, March 2021. (R&R American Economic Journal: Microeconomics.)
- December 2019
- Article
Costly Concessions: An Empirical Framework for Matching with Imperfectly Transferable Utility
By: Alfred Galichon, Scott Duke Kominers and Simon Weber
We introduce an empirical framework for models of matching with imperfectly transferable utility and unobserved heterogeneity in tastes. Our framework allows us to characterize matching equilibrium in a flexible way that includes as special cases the classic fully- and... View Details
Keywords: Sorting; Matching; Marriage Market; Intrahousehold Allocation; Imperfectly Transferable Utility; Marketplace Matching; Mathematical Methods
Galichon, Alfred, Scott Duke Kominers, and Simon Weber. "Costly Concessions: An Empirical Framework for Matching with Imperfectly Transferable Utility." Journal of Political Economy 127, no. 6 (December 2019): 2875–2925.
- 2012
- Working Paper
The Effect of Supply Chain Complementarities on Local Food
By: Baris Ata, Deishin Lee and Mustafa H. Tongarlak
We study the operational tradeoffs of a retailer and farmers in a fresh produce supply chain to determine the equilibrium supply chain structure. These operational tradeoffs arise as a result of the geographic constraints posed by the availability of arable land and... View Details
- 2008
- Working Paper
Minimally Altruistic Wages and Unemployment in a Matching Model
By: Julio J. Rotemberg
This paper presents a model in which firms recruit both unemployed and employed workers by posting vacancies. Firms act monopsonistically and set wages to retain their existing workers as well as to attract new ones. The model differs from Burdett and Mortensen (1998)... View Details
Rotemberg, Julio J. "Minimally Altruistic Wages and Unemployment in a Matching Model." NBER Working Paper Series, No. 13755, February 2008.
- Research Summary
Dissertation Summary
From a contractual viewpoint, the employment relations observed in the early 1960s in large unionized manufacturing firms in the U.S. and Japan represented two contrasting cases. Employment relations in the U.S. were based largely on explicit, elaborate, and... View Details
- 2022
- Working Paper
Measuring the Tolerance of the State: Theory and Application to Protest
By: Veli Andirin, Yusuf Neggers, Mehdi Shadmehr and Jesse M. Shapiro
We develop a measure of a regime's tolerance for an action by its citizens. We ground our measure in an economic model and apply it to the setting of political protest. In the model, a regime anticipating a protest can take a costly action to repress it. We define the... View Details
Keywords: Political Protests; Modeling And Analysis; Government and Politics; Conflict and Resolution
Andirin, Veli, Yusuf Neggers, Mehdi Shadmehr, and Jesse M. Shapiro. "Measuring the Tolerance of the State: Theory and Application to Protest." NBER Working Paper Series, No. 30167, June 2022.
- 2023
- Working Paper
Spatial Mobility, Economic Opportunity, and Crime
By: Gaurav Khanna, Carlos Medina, Anant Nyshadham, Daniel Ramos-Menchelli, Jorge Tamayo and Audrey Tiew
Neighborhoods are strong determinants of both economic opportunity and criminal activity. Does improving connectedness between segregated and unequal parts of a city predominantly import opportunity or export crime? We use a spatial general equilibrium framework to... View Details
Keywords: Urban Development; Transportation Networks; Crime and Corruption; Transportation Industry; Medellín; Colombia; South America
Khanna, Gaurav, Carlos Medina, Anant Nyshadham, Daniel Ramos-Menchelli, Jorge Tamayo, and Audrey Tiew. "Spatial Mobility, Economic Opportunity, and Crime." Harvard Business School Working Paper, No. 24-016, September 2023. (R&R American Economic Review.)
- 2022
- Working Paper
Pricing Power in Advertising Markets: Theory and Evidence
By: Matthew Gentzkow, Jesse M. Shapiro, Frank Yang and Ali Yurukoglu
Existing theories of media competition imply that advertisers will pay a lower price in equilibrium to reach consumers who multi-home across competing outlets. We generalize and extend this theoretical result and test it using data from television and social media... View Details
Gentzkow, Matthew, Jesse M. Shapiro, Frank Yang, and Ali Yurukoglu. "Pricing Power in Advertising Markets: Theory and Evidence." NBER Working Paper Series, No. 30278, July 2022.
- February 2024
- Article
Pricing Power in Advertising Markets: Theory and Evidence
By: Matthew Gentzkow, Jesse M. Shapiro, Frank Yang and Ali Yurukoglu
Existing theories of media competition imply that advertisers will pay a lower price in equilibrium to reach consumers who multi-home across competing outlets. We generalize, extend, and test this prediction. We find that television outlets whose viewers watch more... View Details
Gentzkow, Matthew, Jesse M. Shapiro, Frank Yang, and Ali Yurukoglu. "Pricing Power in Advertising Markets: Theory and Evidence." American Economic Review 114, no. 2 (February 2024): 500–533.
- 2023
- Working Paper
The Market for Sharing Interest Rate Risk: Quantities and Asset Prices
By: Ishita Sen, Umang Khetan, Jane Li and Ioana Neamtu
We study the extent of interest rate risk sharing across the financial system using granular positions and transactions data in interest rate swaps. We show that pension and insurance (PF&I) sector emerges as a natural counterparty to banks and corporations: overall,... View Details
Keywords: Interest Rates; Investment Funds; Banks and Banking; Insurance; Investment Banking; Risk and Uncertainty
Sen, Ishita, Umang Khetan, Jane Li, and Ioana Neamtu. "The Market for Sharing Interest Rate Risk: Quantities and Asset Prices." Harvard Business School Working Paper, No. 24-052, February 2024.
- June–July 2013
- Article
Firm Rivalry, Knowledge Accumulation, and MNE Location Choices
By: Juan Alcacer, Cristian Deszo and Minyuan Zhao
The international business (IB) literature has mostly emphasized the impact of location and firm characteristics on location choices. However, industries with a significant presence of multinational enterprises (MNEs) are oligopolistic in nature, which suggests that... View Details
Keywords: Geographic Location; Competition; Multinational Firms and Management; Knowledge Acquisition; Game Theory; Global Strategy
Alcacer, Juan, Cristian Deszo, and Minyuan Zhao. "Firm Rivalry, Knowledge Accumulation, and MNE Location Choices." Special Issue on The Multinational in Geographic Space. Journal of International Business Studies 44, no. 5 (June–July 2013): 504–520.
- Research Summary
Multinational Firms, Labor Market Discrimination, and the Capture of Competitive Advantage by Exploiting the Social Divide
The organizational theory of the multinational firms holds that foreignness is a liability, and specifically that lack of embeddedness in host-country social networks is a source of competitive disadvantage; meanwhile the literature on labor market discrimination... View Details
- 2016
- Working Paper
Financial Regulation in a Quantitative Model of the Modern Banking System
By: Juliane Begenau and Tim Landvoigt
How does the shadow banking system respond to changes in the capital regulation of commercial banks? This paper builds a quantitative general equilibrium model with commercial banks and shadow banks to study the unintended consequences of capital requirements. A key... View Details
Begenau, Juliane, and Tim Landvoigt. "Financial Regulation in a Quantitative Model of the Modern Banking System." Harvard Business School Working Paper, No. 16-140, June 2016. (Revised July 2016.)
- 2015
- Chapter
Negotiations: Statistical Aspects
'Negotiation analysis' seeks to develop prescriptive theory and useful advice for negotiators and third parties. It generally emphasizes the parties' underlying interests, alternatives to negotiated agreement, approaches to productively manage the inherent tension... View Details
Sebenius, James K. "Negotiations: Statistical Aspects." In International Encyclopedia of the Social & Behavioral Sciences. 2nd ed. Edited by James D. Wright, 430–436. London: Elsevier, 2015.
- 2010
- Working Paper
Competing Complements
By: Ramon Casadesus-Masanell, Barry Nalebuff and David B. Yoffie
In Cournot's model of complements, the producers of A and B are both monopolists. This paper extends Cournot's model to allow for competition between complements on one side of the market. Consider two complements, A and B, where the A + B bundle is valuable only when... View Details
Casadesus-Masanell, Ramon, Barry Nalebuff, and David B. Yoffie. "Competing Complements." Harvard Business School Working Paper, No. 09-009, July 2008. (Revised March 2010.)