Publications

February 2021
Article

A Dynamic Theory of Multiple Borrowing

By: Daniel Green and Ernest Liu

Multiple borrowing—a borrower obtains overlapping loans from multiple lenders—is a common phenomenon in many credit markets. We build a highly tractable, dynamic model of multiple borrowing and show that, because overlapping creditors may impose default externalities... View Details

Keywords: Commitment; Multiple Borrowing; Common Agency; Misallocation; Microfinance; Investment; Mathematical Methods

SSRN

Summer 2014
Article

When Does a Platform Create Value by Limiting Choice?

By: Ramon Casadesus-Masanell and Hanna Halaburda

We present a theory for why it might be rational for a platform to limit the number of applications available on it. Our model is based on the observation that even if users prefer application variety, applications often also exhibit direct network effects. When there... View Details

Keywords: Platform Governance; Direct Network Effects; Indirect Network Effects; Complements; Tragedy Of The Commons; Equilibrium Selection; Coordination; Foresight; Strategy; Value Creation; Digital Platforms; Balance and Stability; Decision Choices and Conditions; Consumer Behavior; Applications and Software; Network Effects

SSRN

Article

What Managers Need to Know About Social Tools: Avoid the Common Pitfalls So That Your Organization Can Collaborate, Learn, and Innovate

By: Paul Leonardi and Tsedal Neeley

Workplaces have adopted internal social tools—think stand-alone technologies such as Slack, Yammer, and Chatter, or embedded applications such as Microsoft Teams and JIRA—at a staggering rate. In an ambitious study of 4,200 companies, conducted by the McKinsey Global... View Details

Keywords: Leadership; Social Tools; Social and Collaborative Networks; Knowledge Sharing; Performance Improvement; Management

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2012
Article

Does Power Corrupt or Enable?: When and Why Power Facilitates Self-interested Behavior

By: K. A. DeCelles, D.S. DeRue, J.D. Margolis and T.L. Ceranic

Does power corrupt a moral identity, or does it enable a moral identity to emerge? Drawing from the power literature, we propose that the psychological experience of power, although often associated with promoting self-interest, is associated with greater self-interest... View Details

Keywords: Power; Moral Identity; Self-interested Behavior; Moral Awareness; Commons Dilemma; Moral Sensibility; Behavior; Power and Influence

August 3, 2022
Article

Why NFT Creators Are Going cc0

By: and Scott Duke Kominers Flashrekt

Strategies for building brands, communities, and content through intellectual property (IP) vary greatly across NFT projects. Some maintain more or less standard IP protections; others give just NFT owners rights to innovate upon the associated intellectual property;... View Details

Keywords: Non-fungible Tokens; NFTs; Video Games; Merchandising; Creative Commons; Intellectual Property

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10 Mar 2020
Research & Ideas

The Little Understood Problem Confronting Diverse Workplaces

on the school’s training programs and read extensively about charter schools in general, for additional context. As they read through their notes, Ramarajan and Reid observed a clear, common theme: Tutors... View Details

Keywords: by Julia Hanna

April 2003 (Revised November 2003)
Case

Creation of the European Union, The

By: J. Gunnar Trumbull

Describes the emergence of the European Union (EU). Focuses on a critical stage in European integration--the period in the early 1990s when member states negotiated the terms of the Maastricht Treaty. This agreement set in motion the project that would eventually lead... View Details

Keywords: International Relations; Alliances; System; Negotiation Participants; Government and Politics; Agreements and Arrangements; Money; Cooperation; European Union

May 2001 (Revised November 2014)
Background Note

The Income Statement

By: David F. Hawkins and Jacob Cohen

Includes a description of the common components of the income statement. Includes examples of the income statements of Home Depot, Inc., Lucent Technology, Inc., Gap, Inc., and McDonald's Corp. and lends itself to a brief discussion regarding these companies. View Details

Keywords: Business Earnings; Financial Statements

May – June 2006
Article

Choose the Right Measures, Drive the Right Strategy

By: Dennis Campbell

Metrics overload is a common problem that can have serious consequences: Specifically, it can make it difficult for employees to see what actions they should take to execute strategic objectives. Having too many metrics dilutes the focus and invariably means many are... View Details

Keywords: Measurement and Metrics; Strategy; Employees; Customer Satisfaction

09 Nov 2023
HBS Case

What Will It Take to Confront the Invisible Mental Health Crisis in Business?

As a finance specialist, Harvard Business School Professor Lauren Cohen works to understand the dynamics that make businesses thrive. In his recent research on family companies, he has found one common... View Details

Keywords: by Kara Baskin; Health

August 1, 2022
Article

The Supply Chain, Explained

By: Willy C. Shih

Why have supply chains been such a mess? For starters, there are a lot more layers than you think. This article describes some common features of supply chains that help the reader to understand how things could have gone so far off track during the pandemic. View Details

Keywords: COVID-19 Pandemic; Supply Chain; Manufacturing Industry; United States

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June 2017
Article

The Surprising Effectiveness of Hostile Mediators

By: Ting Zhang, Francesca Gino and Michael I. Norton

Contrary to the tendency of mediators to defuse negative emotions between adversaries by treating them kindly, we demonstrate the surprising effectiveness of hostile mediators in resolving conflict. Hostile mediators generate greater willingness to reach agreements... View Details

Keywords: Mediation; Conflict; Negotiation; Hostility; Negotiation Style; Emotions; Conflict and Resolution

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May 2001 (Revised March 2007)
Background Note

Balance Sheet, The

By: David F. Hawkins and Jacob Cohen

Discusses the accounting equation and defines common terms found in the statement. Also provides an example of the balance sheets of Coca-Cola Co., Ariba, Inc., and Safeway, Inc. View Details

Keywords: Accounting

September 2018
Article

Assembling the Sales Team

By: Frank V. Cespedes

Data and analytical tasks have lengthened productivity ramp-up times in many sales contexts, making each hire a bigger sunk cost for a longer time. Most companies adopt two common practices: They hire on the basis of “experience” and/or look at their best reps and try... View Details

Keywords: Sales; Selection and Staffing

May 2011
Article

The Wise Leader

By: Ikujiro Nonaka and Hirotaka Takeuchi

In an era of increasing discontinuity, wise leadership has nearly vanished. Many leaders find it difficult to reinvent their corporations rapidly enough to cope with new technologies, demographic shifts, and consumption trends. They can't develop truly global... View Details

Keywords: Communication Intention and Meaning; Interpersonal Communication; Experience and Expertise; Values and Beliefs; Knowledge Sharing; Knowledge Use and Leverage; Leadership; Leadership Development; Corporate Social Responsibility and Impact; Personal Characteristics; Power and Influence

December 2003 (Revised November 2015)
Background Note

The Fiduciary Relationship: A Legal Perspective

By: Lynn Sharp Paine

Discusses the concept of a fiduciary, as developed in the Anglo-American common law tradition, and outlines the principal differences between the legal standard applied to fiduciaries compared to ordinary arms'-length contractors. View Details

Keywords: Ethics; Assets; Financial Management; Common Law; Standards