Publications

1972
Book

Studies in the Theory of Capital Markets

By: M. C. Jensen

Keywords: Capital Markets; Theory

2007
Working Paper

Interpersonal Authority in a Theory of the Firm

By: Eric J. Van den Steen

This paper develops a theory of the firm in which a firm's centralized asset ownership and low-powered incentives give a manager 'interpersonal authority' over employees (in a world with differing priors). The paper derives such interpersonal authority as... View Details

Keywords: Governance Controls; Employee Relationship Management; Managerial Roles; Motivation and Incentives; Boundaries; Theory

fall 2008
Article

Toward a Theory of Behavioral Operations

By: Francesca Gino and Gary P. Pisano

Human beings are critical to the functioning of the vast majority of operating systems, influencing both the way these systems work and how they perform. Yet most formal analytical models of operations assume that the people who participate in operating systems are... View Details

Keywords: Management Systems; Operations; Mathematical Methods; Behavior; Cognition and Thinking; Perspective; Theory

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

02 Aug 2017
Working Paper Summaries

Machine Learning Methods for Strategy Research

Keywords: by Mike Horia Teodorescu

January 1991
Article

A Theory of Inefficient Intrafirm Transactions

By: J. J. Rotemberg

Keywords: Theory

Read Now

January – February 2012
Article

Toward a Behavioral Theory of Strategy

Keywords: Behavior; Theory; Strategy

Article

Theory of Constant Proportion Portfolio Insurance

By: André Perold and Fischer Black

Keywords: Theory; Insurance; Investment

fall 1985
Article

A Theory of Salesforce Compensation Plans

By: R. Lal, A. K. Basu, V. Srinivasan and Richard Staelin

Keywords: Theory; Sales; Employees; Competition

June 1996 (Revised November 1996)
Background Note

Economic Gains from Trade, The: Theories of Strategic Trade

The theory of competitive advantage is one of the most widely accepted economic principles among economists. The theory, as well as substantial historical evidence, suggest that free trade raises national income, while government intervention in trade relations... View Details

Keywords: Competitive Advantage; Trade

Educators

1979
Chapter

Toward a Theory of the Press

By: Michael C. Jensen

Keywords: Media; Media and Broadcasting Industry; Journalism and News Industry

Research Summary

Technology and Knowledge Transfer in the Evolution of China’s Machine Industry

This work-in-progress provides a historical perspective on the role of foreign companies as providers of machinery equipment and facilitators of technology transfer in China from the last decade of the 19^th century to the early 1950s. The project focuses on... View Details

February 2008 (Revised August 2011)
Case

Olympia Machine Company, Inc.

By: Frank V. Cespedes and Benson P. Shapiro

The management team of an industrial equipment supplier is debating the company's method of compensating salespeople. Different executives have offered different alternatives to the current method of straight salary plus expenses. Each option has different implications... View Details

Keywords: Governance Controls; Compensation and Benefits; Mission and Purpose; Salesforce Management; Motivation and Incentives; Business Strategy; Industrial Products Industry

Educators

1976
Article

The Asymptotic Theory of Stochastic Games

By: Truman F. Bewley and Elon Kohlberg

Keywords: Games, Gaming, and Gambling; Theory

2019
Chapter

Resource Allocation Theory

By: Joseph L. Bower

This article considers the process of resource allocation, whereby an organization determines how best to apportion its factors of production between the various productive activities in which it wishes to engage. It is suggested that none of the academic approaches to... View Details

Keywords: Resource Allocation

Teaching Interest

Organization and Management Theory

By: Michael L. Tushman

This doctoral seminar explores fundamental aspects of organizations and organization theory. This seminar will cover various approaches to organizations and the institutional contexts within which they operate. We will pay particular attention to innovation and... View Details

1984
Book

The Modern Theory of Corporate Finance

By: Michael C. Jensen and Clifford H. Smith Jr.

Keywords: Corporate Finance

2018
Working Paper

Algorithm Appreciation: People Prefer Algorithmic to Human Judgment

By: Jennifer M. Logg, Julia A. Minson and Don A. Moore

Even though computational algorithms often outperform human judgment, received wisdom suggests that people may be skeptical of relying on them (Dawes, 1979). Counter to this notion, results from six experiments show that lay people adhere more to advice when they think... View Details

Keywords: Algorithms; Accuracy; Advice Taking; Forecasting; Theory Of Machine; Mathematical Methods; Decision Making; Forecasting and Prediction; Trust

Read Now

March 2010
Article

Interpersonal Authority in a Theory of the Firm

By: Eric J. Van den Steen

This paper develops a theory of the firm in which a firm's centralized asset ownership and low-powered incentives give the manager, as an equilibrium outcome, interpersonal authority over employees (in a world with open disagreement). The paper thus provides... View Details

Keywords: Theory; Assets; Ownership; Motivation and Incentives; Governance Controls; Power and Influence; Projects; Perspective; Employees