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  • July 2024 (Revised January 2025)
  • Case

Dynamic Pricing at Wendy's: Where's the Beef?

By: Elie Ofek, Alicia Dadlani and Martha Hostetter
In early 2024, Wendy’s new CEO announced on an earnings call that the company would install digital menus in its US locations so it could begin testing dynamic pricing—changing prices up or down in response to shifts in supply and demand – as well as allow engaging in... View Details
Keywords: Dynamic Pricing; Marketing Strategy; Price; Technology Adoption; Consumer Behavior; AI and Machine Learning; Customer Focus and Relationships; Policy; Food and Beverage Industry
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Ofek, Elie, Alicia Dadlani, and Martha Hostetter. "Dynamic Pricing at Wendy's: Where's the Beef?" Harvard Business School Case 525-010, July 2024. (Revised January 2025.)
  • September 2023
  • Article

Stock Price Reactions to ESG News: The Role of ESG Ratings and Disagreement

By: George Serafeim and Aaron Yoon
We investigate whether ESG ratings predict future ESG news and the associated market reactions. We find that the consensus rating predicts future news, but its predictive ability diminishes for firms with large disagreement between raters. Relation between news and... View Details
Keywords: ESG; ESG (Environmental, Social, Governance) Performance; ESG Disclosure; ESG Ratings; ESG Reporting; ESG Disclosure Metrics; Sustainability; Investments; Disagreement; Rating Disagreement; Ratings; Environmental Sustainability; Social Issues; Corporate Social Responsibility and Impact; Performance; News; Investment; Financial Markets; Stocks; Price
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Serafeim, George, and Aaron Yoon. "Stock Price Reactions to ESG News: The Role of ESG Ratings and Disagreement." Special Issue on RAST 2022 Conference. Review of Accounting Studies 28, no. 3 (September 2023): 1500–1530.
  • 2013
  • Tool

Harvard Business Review's Go to Market Tools: Pricing for Profit

By: Thomas Steenburgh and Jill Avery
What price is right? Figuring out the best price for your product or service can be nerve-wracking. Your new product launch or marketing campaign's success—perhaps even your career advancement—may hinge on the price you choose. So how do you select a price that's... View Details
Keywords: Quantitative Analysis; Tools; Pricing; Profitability Analysis; Pricing Strategy; Marketing Strategy; Marketing
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Steenburgh, Thomas, and Jill Avery. Harvard Business Review's Go to Market Tools: Pricing for Profit. Tool. Harvard Business Review Press, 2013. Electronic.
  • November 2016 (Revised April 2017)
  • Case

Basecamp: Pricing

By: Frank Cespedes and Robb Fitzsimmons
A data analyst at Basecamp is evaluating the results of pricing research and its potential implications for the venture’s latest version of its project management software product. View Details
Keywords: Pricing; Entrepreneurial Management; Data Analysis; Marketing; Customer Acquisition; Customer Retention; Value Proposition; Sales Management; Product Management; Market Research; Life Time Value; Testing; Entrepreneurship; Analytics and Data Science; Customers; Value; Sales; Product Marketing; United States
Citation
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Cespedes, Frank, and Robb Fitzsimmons. "Basecamp: Pricing." Harvard Business School Case 817-067, November 2016. (Revised April 2017.)
  • 17 Jul 2017
  • Working Paper Summaries

The Relevance of Broker Networks for Information Diffusion in the Stock Market

Keywords: by Marco Di Maggio, Francesco Franzoni, Amir Kermani, and Carlo Sommavilla
  • 2008
  • Article

Governance and Merger Accounting: Evidence from Stock Price Reactions to Purchase versus Pooling

By: Francisco de Asis Martinez-Jerez
This paper examines the effect of corporate governance on investor reactions to accounting choice in the context of accounting for business combinations. Using a sample of 324 recent stock swap acquisitions I find that, contrary to practitioners' belief that capital... View Details
Keywords: Financial Reporting; Financial Statements; Mergers and Acquisitions; Capital Markets; Stocks; Price; Corporate Governance
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Martinez-Jerez, Francisco de Asis. "Governance and Merger Accounting: Evidence from Stock Price Reactions to Purchase versus Pooling." Art. 1. European Accounting Review 17, no. 1 (2008): 5–35. (Lead Article.)
  • 2001
  • Working Paper

Do Underwater Executive Stock Options Still Align Incentives? The Effect of Stock Price Movements on Managerial Incentive-Alignment

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Jin, Li, and Lisa K. Meulbroek. "Do Underwater Executive Stock Options Still Align Incentives? The Effect of Stock Price Movements on Managerial Incentive-Alignment." Harvard Business School Working Paper, No. 02-002, November 2001.
  • October 2007
  • Background Note

Price Formation

By: Joshua D. Coval and Erik Stafford
Investigates how prices are formed in competitive capital markets. Focuses on a single security called AOE. Students compete with computer traders and each other for market making and informed trading profits. Participants receive a variety of public news in the form... View Details
Keywords: Capital Markets; Price; Profit; Corporate Disclosure; Newsletters; Industry Structures; Business Processes; Competitive Strategy
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Coval, Joshua D., and Erik Stafford. "Price Formation." Harvard Business School Background Note 208-040, October 2007.
  • Article

Risk and the Cross-Section of Stock Returns

By: Mark Seasholes, Radu Burlacu, Patrice Fontaine and Sonia Jimenez-Garces
This paper mathematically transforms unobservable rational expectation equilibrium model parameters (information precision and supply uncertainty) into a single variable that is correlated with expected returns and that can be estimated with recently observed data. Our... View Details
Keywords: Risk Premiums; Cross-sectional Asset Pricing; REE Models; Risk and Uncertainty; Asset Pricing; Investment Return
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Seasholes, Mark, Radu Burlacu, Patrice Fontaine, and Sonia Jimenez-Garces. "Risk and the Cross-Section of Stock Returns." Journal of Financial Economics 105, no. 3 (September 2012): 511–522.
  • December 2001 (Revised June 2002)
  • Case

Shenzhen Stock Exchange

By: F. Warren McFarlan, Guoqing Chen, David Kiron and Iris T. Li
The second largest stock exchange in China, shows a surprising sophistication. This case describes the company's growth and underlying technology. View Details
Keywords: Networks; Internet and the Web; Business Growth and Maturation; Infrastructure; Financial Services Industry; China
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McFarlan, F. Warren, Guoqing Chen, David Kiron, and Iris T. Li. "Shenzhen Stock Exchange." Harvard Business School Case 302-070, December 2001. (Revised June 2002.)
  • Winter 2021
  • Article

Mobile Internet Usage and Usage-based Pricing

By: Jeffrey Prince and Shane Greenstein
Using data on mobile Internet usage of thousands of individuals, we provide some of the first analyses linking mobile usage to key demographics such as income. We find a reverse-U relationship between mobile Internet usage and income—notably different than the... View Details
Keywords: Mobile Internet Usage; Pricing Strategy; Internet and the Web; Mobile and Wireless Technology; Demographics; Income; Price; Strategy
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Prince, Jeffrey, and Shane Greenstein. "Mobile Internet Usage and Usage-based Pricing." Journal of Economics & Management Strategy 30, no. 4 (Winter 2021): 760–783.
  • January 1978
  • Article

Pooling vs. Purchase: The Effects of Accounting for Mergers on Stock Prices

By: Robert S. Kaplan, Hai Hong and Gershon Mandelker
Keywords: Accounting; Mergers and Acquisitions; Stocks; Price
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Kaplan, Robert S., Hai Hong, and Gershon Mandelker. "Pooling vs. Purchase: The Effects of Accounting for Mergers on Stock Prices." Accounting Review 53 (January 1978): 31–47.
  • 2023
  • Working Paper

The Optimal Stock Valuation Ratio

By: Sebastian Hillenbrand and Odhrain McCarthy
Trailing price ratios, such as the price-dividend and the price-earnings ratio, scale prices by trailing cash flow measures. They theoretically contain expected returns, yet, their performance in predicting stock market returns is poor. This is because of an omitted... View Details
Keywords: Price; Investment Return; AI and Machine Learning; Valuation; Cash Flow; Forecasting and Prediction
Citation
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Hillenbrand, Sebastian, and Odhrain McCarthy. "The Optimal Stock Valuation Ratio." Working Paper, November 2023.
  • Research Summary

Do Appearances Matter? The Impact of EPS Accretion and Dilution on Stock Prices

There is a widespread concern among practitioners and corporate managers that transactions which result in changes in future earnings-per-share (EPS) have real effects on stock prices, irrespective of whether these changes reflect differences in future cash flows.  As... View Details
  • 19 May 2008
  • Research & Ideas

Connecting School Ties and Stock Recommendations

information flow, and price evolution, in security markets." Cohen explained more in an e-mail interview with HBS Working Knowledge. Martha Lagace: What made you think that there might be an interesting... View Details
Keywords: by Martha Lagace; Financial Services
  • October 2001 (Revised February 2007)
  • Background Note

Accounting for Employee Stock Options

Employees who have been granted stock options have the right to purchase shares of their company's stock at a specified price within a specified time period. The accounting for such employee stock options has been a controversial and complex topic for decades. The... View Details
Keywords: Employee Stock Ownership Plan; Accounting
Citation
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Bradshaw, Mark T. "Accounting for Employee Stock Options." Harvard Business School Background Note 102-039, October 2001. (Revised February 2007.)
  • May 2018
  • Article

Using Online Prices for Measuring Real Consumption Across Countries

By: Alberto Cavallo, Erwin Diewert, Robert C. Feenstra, Robert Inklaar and Marcel P. Timmer
We show that online prices can be used to construct quarterly purchasing power parities (PPPs) with a closely matched set of goods and identical methodologies in a variety of developed and developing countries. Our results are close to those reported by the... View Details
Keywords: Purchasing Power Parity; International Economy; Online Prices; Billion Prices Project; Economics; Macroeconomics; Price; Internet and the Web; Spending; Economy; Global Range; Measurement and Metrics
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Cavallo, Alberto, Erwin Diewert, Robert C. Feenstra, Robert Inklaar, and Marcel P. Timmer. "Using Online Prices for Measuring Real Consumption Across Countries." AEA Papers and Proceedings 108 (May 2018): 483–487.
  • 19 Nov 2018
  • Working Paper Summaries

Lazy Prices

Keywords: by Lauren Cohen, Christopher J. Malloy, and Quoc Nguyen; Financial Services
  • January 2021
  • Article

ETF Activity and Informational Efficiency of Underlying Securities

By: Lawrence Glosten, Suresh Nallareddy and Yuan Zou
This paper investigates the effect of exchange-traded funds’ (ETFs’) activity on the short-run informational efficiency of their underlying securities. We find that ETF activity increases short-run informational efficiency for stocks with weak information environments.... View Details
Keywords: ETF; Informational Efficiency; Co-movement; Systematic Earnings; Share Lending
Citation
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Glosten, Lawrence, Suresh Nallareddy, and Yuan Zou. "ETF Activity and Informational Efficiency of Underlying Securities." Management Science 67, no. 1 (January 2021): 22–47.
  • 1984
  • Working Paper

Earnings Variability and Variance Bounds Tests for Rationality of Stock Market Prices

By: Robert C. Merton and Terry A. Marsh
Citation
Related
Merton, Robert C., and Terry A. Marsh. "Earnings Variability and Variance Bounds Tests for Rationality of Stock Market Prices." Sloan School of Management Working Paper, No. 1559-84, April 1984.
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