Publications

2014
Working Paper

Principals and Their Car Dealers: What Do Targets Tell About Their Relation?

By: Jan Bouwens, Eddy Cardinaels and Jingwen Zhang

In this study we describe target setting and target achievements for a car dealership. Car dealers are eligible for a discount on the purchase price conditional on their achieving the sales targets set by the franchisor. We show that car dealers (franchisees) who... View Details

Keywords: Goals and Objectives; Motivation and Incentives; Franchise Ownership; Auto Industry; Retail Industry

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Understanding Health Systems, Payors, and Regulation - Health Care

Impact Understanding Health Systems, Payors, and Regulation Health Minute: The Real Impact of Coupons on Drug Pricing Nabihah Sachedina Joint Degree 2013 More “Health Systems” stories Faculty Focus... View Details

November 2005 (Revised November 2005)
Case

Massachusetts General Hospital and the Enbrel Royalty

By: David S. Scharfstein and Darren R. Smart

Massachusetts General Hospital is considering selling its royalty interest in Enbrel, Amgen's blockbuster drug for the treatment of rheumatoid arthritis. In assessing whether to sell, and at what price, the hospital must determine its value to a potential buyer as well... View Details

Keywords: Valuation; Price; Investment Return; Capital; Value; Revenue; Health Care and Treatment; Health Industry; Biotechnology Industry; Massachusetts

October 2023 (Revised January 2024)
Case

McDonald's Board of Directors (A)

By: Lynn S. Paine and Will Hurwitz

In October 2019, the McDonald’s Corporation board of directors, chaired by Enrique Hernandez, Jr., gathered to learn the results of their outside counsel’s investigation into the conduct of the CEO. On the surface, the iconic fast-food chain was thriving as growing... View Details

04 May 2020
Research & Ideas

Predictions, Prophets, and Restarting Your Business

“Predictions are risky, especially about the future,” according to a popular expression. Still, business is inescapably about the future—that’s what managers’ decisions are about. In the current crisis, we have daily grand predictions about “new normals,” View Details

Keywords: by Frank V. Cespedes

Article

Institutional Portfolio Flows and International Investments

By: K. A. Froot and T. Ramadorai

Keywords: Loss Aversion; International Investment; Portfolio Investment; Asset Allocation; Decision Choices and Conditions; Currency; Investment; Risk Management; Behavioral Finance; Asset Pricing

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20 Jun 2017
First Look

First Look at New Research and Ideas, June 20

and Andrei Shleifer Abstract—We present an extrapolative model of bubbles. In the model, many investors form their demand for a risky asset by weighing two signals: an average of the asset’s past price... View Details

Keywords: Sean Silverthorne

01 Dec 2006
What Do You Think?

How Important Is Quality of Labor? And How Is It Achieved?

Philippines, or Brazil, companies should consider knowledge capacities and not price whenever they decide to use such ('cheap') labor . The only companies that still look at labor through the same eyes as... View Details

Keywords: by by Jim Heskett

September 2015 (Revised March 2017)
Case

Château Margaux (Abridged)

By: Elie Ofek, Eric E. Vogt and Robert J. Dolan

Château Margaux, one of only five prestigious estates in the Bordeaux Medoc wine region to have been classified as a "first-growth", is facing a host of strategic decisions in early 2013. Up until this point the estate had been selling two red wines, a first wine whose... View Details

Keywords: New Product Launch; Marketing Plan; Brand Management; Go To Market Strategy; Channels Of Distribution; Wine Industry; Marketing; Brands and Branding; Marketing Strategy; Distribution Channels; Product Launch; Agriculture and Agribusiness Industry; Agriculture and Agribusiness Industry; France

01 Dec 2020
News

The Camel and the Unicorn

become even more popular as the COVID-19 pandemic has made both the Valley’s products and its real estate prices seem ever more impractical. But if those dire predictions come true, it might not be because... View Details

29 Jan 2014
Working Paper Summaries

The Rising Cost of Consumer Attention: Why You Should Care, and What You Can Do about It

Keywords: by Thales S. Teixeira

04 Dec 2000
What Do You Think?

Have We Overdone Deregulation and Privatization?

consumers were that deregulation: (1) unleashes the power of a self-correcting free market (Jeff Struck), giving customers services at prices they are willing to pay and quality levels that they are willing... View Details

Keywords: by James Heskett

October 1990
Case

Manufacturers Hanover Corp.: Customer Profitability Report

By: Robert S. Kaplan

Banking company noting declining profitability from its traditional lending activities has started to measure the total profitability of its lending relationships. A loan pricing model estimates the profit and return-on-equity from commercial loans. Additional work was... View Details

Keywords: Investment Return; Revenue; Commercial Banking; Banks and Banking; Customer Value and Value Chain; Banking Industry

2020
Working Paper

Measuring the Cost of Corporate Water Usage

By: DG Park, George Serafeim and T. Robert Zochowski

We develop a methodology that calculates the impact that organizations have on the environment through their water consumption relating to water stress risk. Using the methodology, we derive estimates for four companies that show how assumptions on the geographic... View Details

Keywords: Water; Water Management; Environment; Sustainability; Environmental Impact; Impact-Weighted Accounts; IWAI; Organizations; Environmental Sustainability; Valuation