Publications

February 1995 (Revised August 1995)
Case

Microsoft in the People's Republic of China, 1993

By: Tarun Khanna

Explores some of the economic and political tradeoffs that need to be negotiated by a firm seeking to influence industry structure. The setting is the nascent personal computer software industry in the People's Republic of China (PRC) in 1993. Microsoft has to localize... View Details

Keywords: Cost vs Benefits; Product Marketing; Market Entry and Exit; Market Transactions; Industry Structures; Partners and Partnerships; Vertical Integration; Software; Information Technology Industry; China

1994
Chapter

Customer Transaction Databases: Present Status and Prospects

By: J. A. Deighton, Don Peppers and Martha Rogers

Keywords: Customers; Market Transactions; Information Management; Data and Data Sets

July 1994 (Revised July 1995)
Case

VeriFone: The Transaction Automation Company (A)

By: Richard L. Nolan, Donna B. Stoddard and Hossam Galal

Describes VeriFone's new organizational model and its role in catapulting VeriFone to a market leadership position. Examines the impact of information technology and information access on the ability to leverage global resources, market responsiveness, and... View Details

Keywords: Leading Change; Leadership Development; Market Transactions; Information Technology; Organizational Design; Knowledge Use and Leverage; Organizational Structure; Information Management; Information Technology Industry

January 1994
Article

Jumping the Gun: Imperfections and Institutions Related to the Timing of Market Transactions

By: A. E. Roth and X. Xing

Keywords: Market Transactions

1993
Working Paper

Currency Hedging Over Long Horizons

By: K. A. Froot

This paper reexamines the widely-held wisdom that the currency exposure of international investments should be entirely hedged. It finds that the previously documented ability of hedges to reduce portfolio return variance holds at short horizons, but not at long... View Details

Keywords: Currency; Hedging; Transaction Costs; Exchange Rates; International Markets; Real Exchange Rate; Purchasing Power Parity; International Finance; Currency Exchange Rate; Asset Pricing; Investment; Globalized Markets and Industries

November 1992 (Revised December 1994)
Case

BEA Associates: Enhanced Equity Index Funds

By: Andre F. Perold

BEA's enhanced index fund product uses derivatives and cash market securities to find the most efficient way to "track an index." The considerations involve transaction costs, custodial fees, withholding taxes on dividends, and fees from securities lending. In this... View Details

Keywords: Credit Derivatives and Swaps; Investment Portfolio; Management; Investment Banking; Competitive Advantage; Cost Management

March 1992 (Revised December 1992)
Case

Salomon and the Treasury Securities Auction

By: Dwight B. Crane

Set in June 1991, two months prior to Salomon Brothers' announcement that the firm had violated the Treasury Department's rules governing the auctions of new Treasury securities. Salomon Vice Chairman John Meriwether must decide how to address problems that continue to... View Details

Keywords: Debt Securities; Managerial Roles; Ethics; Market Transactions; Bonds; Investment Banking; Crisis Management; Auctions; Legal Liability; Banking Industry

February 1991
Background Note

Note on Sealed Bid Auctions

By: David E. Bell

Describes a simple approach to determining an appropriate bid for a sealed bid auction. View Details

Keywords: History; Management Style; Financial Management; Consumer Behavior; Accounting; Bids and Bidding; Decisions; Market Transactions; Decision Choices and Conditions; Competitive Strategy; Negotiation Style; Auctions

Article

Beyond the Reach of the Invisible Hand: Impediments to Economic Activity, Market Failures, and Profitability

By: Dennis Yao

In this paper it is argued that failures of the competitive market are necessary conditions for supranormal profitability. Three fundamental causes of these market failures-production economies and sunk costs, transactions costs, and imperfect information-are developed... View Details

Keywords: Economics; Markets; Failure; Profit; Cost; Information; Market Transactions; Competition; Strategy; Production

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September 1987 (Revised November 1992)
Background Note

Note on Transaction and Translation Exposure

By: W. Carl Kester and Richard P. Melnick

Describes the transaction and translation exposures that companies doing business internationally face when foreign exchange rates change. Also discusses how to measure and cover both types of exposure. Covering techniques are demonstrated using examples of forward... View Details

Keywords: Currency Exchange Rate; International Finance

Article

Temporary General Equilibrium in a Sequential Trading Model with Spot and Futures Transactions

By: Jerry R. Green

The existence of an equilibrium is proven for a two-period model in which there are spot transactions and futures transactions in the first period and spot markets in the second period. Prices at that date are viewed with subjective uncertainty by all traders. This... View Details

Keywords: Equilibrium; Sequential Trading; Econometric Models

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2018
Chapter

Are Licensing Markets Local? An Analysis of the Geography of Vertical Licensing Agreements in Bio-Pharmaceuticals

By: Juan Alcacer, John Cantwell and Michelle Gittelman

As the value chain of the pharmaceutical industry disaggregates, upstream discovery is increasingly carried out by small research-specialized firms while downstream development, testing and marketing is conducted by global pharmaceutical firms. Licensing plays an... View Details

Keywords: Geographic Location; Local Range; Rights; Research and Development; Biotechnology Industry; Pharmaceutical Industry

Research Summary

Customer Management in Business-to-Business Markets

By: Das Narayandas

Das Narayandas is engaged in ongoing research on vendor firms' management of long-term customer relationships. The initial phase of his research involved identifying vendors that stood to benefit from long-term relationships with select sets of customers and... View Details

Teaching Interest

Finance II (MBA Required Curriculum)

By: Benjamin C. Esty

This course builds on the foundation developed in Finance I, focusing on three sets of managerial decisions:

How to evaluate complex investments.
How to set and execute financial policies within a firm.
How to integrate... View Details

Keywords: Finance

Forthcoming
Article

From Bupkis to Sechel in Health Care

By: Regina E. Herzlinger and Richard Boxer

Fifty years ago, famed economist Milton Friedman declared that “The social responsibility of business is to increase its profits.” This free market manifesto was adopted by the healthcare industry as well. But transactional has evolved into transformational with the... View Details

Keywords: Corporate Accountability; Customer Focus and Relationships; Corporate Social Responsibility and Impact; Health Industry