Publications

August 1988 (Revised March 1990)
Case

Manufacturers Hanover Corp.: The New Information Technology Organization (C)

By: Lynda M. Applegate

Keywords: Banks and Banking; Information Technology; Banking Industry

August 1988 (Revised April 1998)
Case

IBM 360: Giant as Entrepreneur

By: Joseph L. Bower

Presents the ingredients that went into a major entrepreneurial shift by IBM--investing $5 billion into a new product line that would obsolete any existing computer product line offered by the competition, or by IBM itself. The economic and technical challenges of this... View Details

Keywords: Change Management; Corporate Entrepreneurship; Financial Management; Investment; Organizational Change and Adaptation; Organizational Structure; Problems and Challenges; Competitive Strategy; Information Technology Industry

1988
Chapter

Adjustment of the U.S. and Japanese External Imbalances

By: K. A. Froot

Keywords: International Trade; International Finance; Trade; United States; Japan

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

1988
Chapter

Evaluation of Government Financial Incentives to Large Scale Energy Projects: A Contingent Claims Approach

By: Carliss Y. Baldwin and Scott P. Mason

Keywords: Energy; Projects; Motivation and Incentives; Sovereign Finance; Business and Government Relations; Mathematical Methods; Energy Industry

1988
Chapter

Explaining the Demand for Dollars: International Rates of Return, and the Expectations of Chartists and Fundamentalists

By: Jeffrey A. Frankel and Kenneth A. Froot

Keywords: Currencies; Exchange Rates; International Macroeconomics; Monetary Policy; Currency Controls; Fixed Exchange Rates; Floating Exchange Rates; Currency Bands; Currency Zones; Currency Areas; Rational Expectations; Currency Exchange Rate; Asset Pricing; Macroeconomics

July 1988 (Revised May 1989)
Background Note

On the Economics of a Parking Garage

By: David E. Bell

Introduces notions of cash flow, net present value, and internal rate of return by estimating the profitability of a parking garage. View Details

Keywords: Business Earnings; Corporate Finance; Auto Industry; Service Industry

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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July 1988
Article

Relevant Costs, Congestion and Stochasticity in Production Environments

By: R. Banker, S. Datar and S. Kekre

Keywords: Cost; Production

summer 1988
Article

Simultaneous Signaling to the Capital and Product Markets

By: David S. Scharfstein, Robert Gertner and Robert Gibbons

Keywords: Product; Capital; Markets

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June 1988 (Revised December 1991)
Case

An Tai Bao Coal Mining Project

By: W. Carl Kester and Richard P. Melnick

An Tai Bao is the world's largest open-pit coal mine and is located in China's Shanxi province. After eight years of planning and negotiating, Occidental Petroleum, the foreign partner in the deal, is about to sign an ownership and financing agreement for $475 million... View Details

Keywords: Planning; Agreements and Arrangements; Non-Renewable Energy; Equity; Partners and Partnerships; Negotiation Deal; Joint Ventures; Mining Industry; China

June 1988
Case

Decontrol of Fertilizer Prices in Pakistan

By: Louis T. Wells Jr.

Keywords: Business and Government Relations; Developing Countries and Economies; Price; Pakistan

16 May 1988
Lecture

Bank-Manufacturer Relationships in the United States and Japan

By: W. Carl Kester

Keywords: Relationships; Banks and Banking; Manufacturing Industry; Banking Industry; United States; Japan

May 1988
Article

Management Dilemmas in Securities Firms

By: Robert G. Eccles Jr. and Dwight B. Crane

Keywords: Problems and Challenges; Management; Business Ventures; Financial Instruments; Financial Services Industry

Article

The Free Lunch in Currency Hedging: Implications for Investment Policy and Performance Standards

By: André Perold and Evan C. Schulman

Keywords: Currency; Investment; Performance

April 1988 (Revised May 1992)
Case

Gaz de France

By: W. Carl Kester

The treasurer of Gaz de France is an aggressive, proactive manager of his company's liability structure, running one of the largest swap books of any non-financial corporation in the world. Currency futures, interbank forwards, and currency options are also frequently... View Details

Keywords: Decisions; Borrowing and Debt; Currency Exchange Rate; Credit Derivatives and Swaps; Policy; Management; Organizational Structure; Energy Industry; Europe

April 1988 (Revised September 1992)
Case

Frito-Lay, Inc.: The Backhaul Decision

By: Janice H. Hammond

Prior to the Motor Carrier Act of 1980, companies with private trucking fleets were generally prohibited from selling transportation services to other companies. The deregulation of the trucking industry in 1980 allowed private carriers to offer for-hire transportation... View Details

Keywords: Cost Management; Revenue; Governing Rules, Regulations, and Reforms; Marketing Strategy; Distribution; Service Operations; Sales; Salesforce Management; Transportation; Food and Beverage Industry

February 1988 (Revised November 1994)
Background Note

Note on Fundamental Parity Conditions

By: W. Carl Kester and Richard P. Melnick

Provides a simple framework for analyzing expected exchange rate movements. Basic parity and equilibrium conditions are presented including purchasing power parity, forward parity, interest rate parity, the domestic Fisher effect, and the international Fisher effect... View Details

Keywords: Currency Exchange Rate; Situation or Environment

February 1988 (Revised May 1988)
Background Note

Note on Debt-Equity Conversions in Latin American Countries

By: Ray A. Goldberg

Keywords: Borrowing and Debt; Equity; Development Economics; Latin America