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  • All HBS Web  (1,825)
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    • News  (166)
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  • 2023
  • Working Paper

Cognitive Uncertainty in Intertemporal Choice

By: Benjamin Enke and Thomas Graeber
This paper studies the relevance of cognitive uncertainty – subjective uncertainty over one's utility-maximizing action – for understanding and predicting intertemporal choice. The main idea is that when people are cognitively noisy, such as when a decision is complex,... View Details
Keywords: Cognitive Uncertainty; Intertemporal Choice; Cognition and Thinking; Complexity; Decision Choices and Conditions
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Enke, Benjamin, and Thomas Graeber. "Cognitive Uncertainty in Intertemporal Choice." NBER Working Paper Series, No. 29577, December 2021. (R&R at The Quarterly Journal of Economics.)
  • 2017
  • Working Paper

Economic Uncertainty and Earnings Management

By: Luke C.D. Stein and Charles C.Y. Wang
In the presence of managerial short-termism and asymmetric information about skill and effort provision, firms may opportunistically shift earnings from uncertain to more certain times. We document empirically that when financial markets are less certain about a firm's... View Details
Keywords: Discretionary Accruals; Uncertainty; Implied Volatility; Earnings Response Coefficient; Risk and Uncertainty; Earnings Management; Financial Markets
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Stein, Luke C.D., and Charles C.Y. Wang. "Economic Uncertainty and Earnings Management." Harvard Business School Working Paper, No. 16-103, March 2016. (Revised April 2017.)
  • December 2021
  • Article

Trade Policy Uncertainty and Stock Returns

By: Marcelo Bianconi, Federico Esposito and Marco Sammon
A recent literature has documented large real effects of trade policy uncertainty (TPU) on trade, employment, and investment, but there is little evidence that investors are compensated for bearing such risk. To quantify the risk premium associated with TPU, we exploit... View Details
Keywords: Trade Policy; Uncertainty; Stock Returns; Risk Premium; Tariff Rates; Portfolio Analysis; Trade; Policy; Risk and Uncertainty; Stocks; Investment Return
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Bianconi, Marcelo, Federico Esposito, and Marco Sammon. "Trade Policy Uncertainty and Stock Returns." Art. 102492. Journal of International Money and Finance 119 (December 2021).
  • Article

Reciprocity and Uncertainty

By: Yoella Bereby-Meyer
Guala points to a discrepancy between strong negative reciprocity observed in the lab and the way cooperation is sustained "in the wild." This commentary suggests that in lab experiments, strong negative reciprocity is limited when uncertainty exists regarding the... View Details
Keywords: Risk and Uncertainty; Cooperation
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Bereby-Meyer, Yoella. "Reciprocity and Uncertainty." Behavioral and Brain Sciences 35, no. 1 (February 2012): 18–19.
  • 2020
  • Working Paper

Reverse Information Sharing: Reducing Costs in Supply Chains with Yield Uncertainty

By: Pavithra Harsha, Ashish Jagmohan, Retsef Levi, Elisabeth Paulson and Georgia Perakis
Supply uncertainty in produce supply chains presents major challenges to retailers. Supply shortages create frequent disruptions in terms of promised delivery times, quantity and quality delivered. To alleviate these challenges, dual sourcing--a strategy in which... View Details
Keywords: Information Sharing; Yield Uncertainty; Ration Gaming; Blockchain; Supply Chain; Risk and Uncertainty
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Harsha, Pavithra, Ashish Jagmohan, Retsef Levi, Elisabeth Paulson, and Georgia Perakis. "Reverse Information Sharing: Reducing Costs in Supply Chains with Yield Uncertainty." MIT Sloan Research Paper, No. 6172-20, October 2020.
  • February 20, 2013
  • Article

Embracing Uncertainty

By: Alan MacCormack
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MacCormack, Alan. "Embracing Uncertainty." MIT Technology Review (website) (February 20, 2013).
  • April 1991 (Revised April 1993)
  • Background Note

Strategic Response to Uncertainty

Managers often ignore uncertainty and plan as if the world were certain. Frequently, strategy is formulated based on an extrapolation of current trends into the future, or the best guess scenario of the manager involved. This note discusses four approaches to shaping... View Details
Keywords: Risk and Uncertainty; Risk Management
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Teisberg, Elizabeth O. "Strategic Response to Uncertainty." Harvard Business School Background Note 391-192, April 1991. (Revised April 1993.)
  • 1996
  • Book

Decisions under Uncertainty

By: D. E. Bell and A. Schleifer Jr.
Keywords: Decisions; Risk and Uncertainty
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Bell, D. E., and A. Schleifer Jr. Decisions under Uncertainty. 2nd ed. Cambridge, MA: Course Technology Inc. (CTI), 1996.
  • 24 Mar 2016
  • Working Paper Summaries

Economic Uncertainty and Earnings Management

Keywords: by Luke C.D. Stein and Charles C.Y. Wang; Financial Services
  • 1995
  • Book

Decisions under Uncertainty

By: D. E. Bell and A. Schleifer Jr.
Keywords: Decision Choices and Conditions
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Bell, D. E., and A. Schleifer Jr. Decisions under Uncertainty. Cambridge, MA: Course Technology Inc. (CTI), 1995.
  • Research Summary

Optimal Decision Making Under Uncertainty

Inventory control problems in supply chains.  In this stream of theoretical research, Professor Goh has investigated how inventory should be optimally managed in supply chains. Specifically, he has studied how supply chains can make decisions to operate... View Details

  • December 2002
  • Article

The Pricing of Event Risks with Parameter Uncertainty

By: K. A. Froot and S. Posner
Keywords: Catastrophe Risk; Corporate Finance; Cost Of Capital; Banking And Insurance; Asset Pricing; Hedging; Banking; Insurance; Decision Choice And Uncertainty; Financial Markets; Policy; Risk Management; Natural Disasters; Insurance Industry
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Froot, K. A., and S. Posner. "The Pricing of Event Risks with Parameter Uncertainty." Geneva Papers on Risk and Insurance: Theory 27, no. 2 (December 2002): 153–165. (Revised from NBER Working Paper no. 8106, February 2001.)
  • Research Summary

Inflation Uncertainty and the Wage Bargain

Joint work with Hans-Joachim Voth, Universitat Pompeu Fabra, Barcelona.

Trade unions often seem to behave in a more militant fashion when inflation rises. We provide the first theory as to why this should be so. We argue that uncertainty about the rate of inflation... View Details

  • Research Summary

Strategic Uncertainty and Communication in Bargaining

A second field of research deals with the effects of strategic uncertainty and communication on bargaining behavior. Stylized bargaining situations are the simplest prototypes of strategic interaction. However, their experimental study provides us with insights which... View Details
  • July 2022
  • Article

The Pass-Through of Uncertainty Shocks to Households

By: Marco Di Maggio, Amir Kermani, Rodney Ramcharan, Vincent Yao and Edison Yu
Using new employer-employee matched data, this paper investigates the impact of uncertainty, as measured by idiosyncratic stock market volatility, on individual outcomes. We find that firms provide at best partial insurance to their workers. An increase in firm-level... View Details
Keywords: Employment Risk; Consumption; Employment; Risk and Uncertainty; System Shocks; Insurance; Household; Spending
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Di Maggio, Marco, Amir Kermani, Rodney Ramcharan, Vincent Yao, and Edison Yu. "The Pass-Through of Uncertainty Shocks to Households." Journal of Financial Economics 145, no. 1 (July 2022): 85–104. (2023 Fama-DFA Prize for the Best Paper Published in the Journal of Financial Economics in Asset Pricing, 2nd place.)
  • Research Summary

Measuring and Managing Uncertainty in Product Development

Dissertation research regarding the startegic implications of uncertainty in product development. View Details
  • 15 May 2020
  • Research & Ideas

Find Your Pragmatic Path through Radical Uncertainty

Reprinted with permission from CommonWealth Magazine, which first published this article. These are times that none of us have seen before. Amid the radical uncertainty of the coronavirus pandemic, fear has reared its ugly head medically,... View Details
Keywords: by Howard Stevenson, Eugene B. Kogan, and Shirley Spence
  • 08 Apr 2011
  • Conference Presentation

Assessing Risk and Uncertainty

By: Anette Mikes
Keywords: Risk and Uncertainty
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Mikes, Anette. "Assessing Risk and Uncertainty." Paper presented at the CARE/CESEA Conference on Accounting for Uncertainty and Risk, April 08, 2011.
  • July 1986
  • Article

Inflation, Uncertainty and Investment

By: Carliss Y. Baldwin and R. S. Ruback
Keywords: Inflation and Deflation; Investment; Risk and Uncertainty
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Baldwin, Carliss Y., and R. S. Ruback. "Inflation, Uncertainty and Investment." Journal of Finance 41, no. 3 (July 1986): 657–668.
  • December 1979
  • Article

Liquidity Preference under Uncertainty

By: Carliss Y. Baldwin and Richard F. Meyer
Keywords: Financial Liquidity; Risk and Uncertainty
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Baldwin, Carliss Y., and Richard F. Meyer. "Liquidity Preference under Uncertainty." Journal of Financial Economics 7, no. 4 (December 1979).
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