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  • 2007
  • Working Paper

Recognizing the New: A Multi-Agent Model of Analogy in Strategic Decision-Making

By: Giovanni Gavetti and Massimo Warglien
In novel environments, strategic decision-making is often premised on analogy, and recognition lies at its heart. Recognition refers to a class of cognitive processes through which a problem is interpreted associatively in terms of something that has been experienced... View Details
Keywords: Interpersonal Communication; Decision Choices and Conditions; Mathematical Methods; Cognition and Thinking; Power and Influence
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Gavetti, Giovanni, and Massimo Warglien. "Recognizing the New: A Multi-Agent Model of Analogy in Strategic Decision-Making." Harvard Business School Working Paper, No. 08-028, October 2007.
  • Research Summary

Overview

By: Himabindu Lakkaraju
I develop machine learning tools and techniques which enable human decision makers to make better decisions. More specifically, my research addresses the following fundamental questions pertaining to human and algorithmic decision-making:

1. How to build... View Details
Keywords: Artificial Intelligence; Machine Learning; Decision Analysis; Decision Support
  • November 5, 2021
  • Article

Leaders: Stop Confusing Correlation with Causation

By: Michael Luca
We’ve all been told that correlation does not imply causation. Yet many business leaders, elected officials, and media outlets still make causal claims based on misleading correlations. These claims are too often unscrutinized, amplified, and mistakenly used to guide... View Details
Keywords: Behavioral Economics; Data Analysis; Organizations; Decision Making; Analytics and Data Science; Analysis; Learning
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Luca, Michael. "Leaders: Stop Confusing Correlation with Causation." Harvard Business Review Digital Articles (November 5, 2021).
  • April 2000 (Revised July 2000)
  • Case

Ameritrade Holding Corporation

By: Lisa K. Meulbroek
Some of the senior managers at Ameritrade, an Internet brokerage firm, are selling their holdings in the firm. Why are the managers selling, how will it affect shareholders, and what should the CEO do about it? The CEO is concerned that the market will interpret... View Details
Keywords: Valuation; Internet and the Web; Stock Options; Risk Management; Financial Services Industry
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Meulbroek, Lisa K. "Ameritrade Holding Corporation." Harvard Business School Case 200-057, April 2000. (Revised July 2000.)
  • April 2017
  • Article

BATNAs in Negotiation: Common Errors and Three Kinds of 'No'

By: James K. Sebenius
The Best Alternative to a Negotiated Agreement (“BATNA”) concept in negotiation has proven to be immensely useful. In tandem with its value in practice, BATNA has become a wildly successful acronym (with more than 14 million Google results). But the initial... View Details
Keywords: Agreements and Arrangements; Negotiation Tactics
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Sebenius, James K. "BATNAs in Negotiation: Common Errors and Three Kinds of 'No'." Negotiation Journal 33, no. 2 (April 2017): 89–99.
  • February 2024
  • Teaching Note

Data-Driven Denim: Financial Forecasting at Levi Strauss

By: Mark Egan
Teaching Note for HBS Case No. 224-029. Levi Strauss & Co. (“Levi Strauss”) partnered with the IT services company Wipro to incorporate more sophisticated methods, such as machine learning, into their financial forecasting process starting in 2018. The decision to... View Details
Keywords: Forecasting; Regression; Machine Learning; Artificial Intelligence; Apparel; Corporate Finance; Forecasting and Prediction; AI and Machine Learning; Apparel and Accessories Industry; United States
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Egan, Mark. "Data-Driven Denim: Financial Forecasting at Levi Strauss." Harvard Business School Teaching Note 224-073, February 2024.
  • Spring 2016
  • Article

Performance Responses to Competition Across Skill-Levels in Rank Order Tournaments: Field Evidence and Implications for Tournament Design

By: Kevin J. Boudreau, Karim R. Lakhani and Michael E. Menietti
Tournaments are widely used in the economy to organize production and innovation. We study individual contestant-level data from 2,796 contestants in 774 software algorithm design contests with random assignment. Precisely conforming to theory predictions, the... View Details
Keywords: Competition; Innovation Strategy
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Boudreau, Kevin J., Karim R. Lakhani, and Michael E. Menietti. "Performance Responses to Competition Across Skill-Levels in Rank Order Tournaments: Field Evidence and Implications for Tournament Design." RAND Journal of Economics 47, no. 1 (Spring 2016): 140–165.
  • October 2010
  • Journal Article

The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization on Corporate Hierarchies

By: Maria Guadalupe and Julie Wulf
This paper establishes a causal effect of product market competition on various characteristics of organizational design. Using a unique panel-dataset on firm hierarchies of large U.S. firms (1986-1999) and a quasi-natural experiment (trade liberalization), we find... View Details
Keywords: Business Ventures; Product; Markets; Competition; Organizational Design; Governing Rules, Regulations, and Reforms; Rank and Position; Organizational Structure; Decision Choices and Conditions; Change; Trade; United States
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Guadalupe, Maria, and Julie Wulf. "The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization on Corporate Hierarchies." American Economic Journal: Applied Economics 2, no. 4 (October 2010).
  • October 2002
  • Article

Differences of Opinion and the Cross-Section of Stock Returns

By: Karl B. Diether, Christopher J. Malloy and Anna Scherbina
We provide evidence that stocks with higher dispersion in analysts' earnings forecasts earn lower future returns than otherwise similar stocks.  This effect is most pronounced in small stocks, and stocks that have performed poorly over the past year. Interpreting... View Details
Keywords: Stocks; Forecasting and Prediction; Price; Valuation; Investment Return
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Diether, Karl B., Christopher J. Malloy, and Anna Scherbina. "Differences of Opinion and the Cross-Section of Stock Returns." Journal of Finance 57, no. 5 (October 2002): 2113–2141.
  • 2009
  • Other Unpublished Work

The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization on Corporate Hierarchies

By: Maria Guadalupe and Julie Wulf
This paper establishes a causal effect of product market competition on various characteristics of organizational design. Using a unique panel-dataset on firm hierarchies of large U.S. firms (1986-1999) and a quasi-natural experiment (trade liberalization), we find... View Details
Keywords: Trade; Managerial Roles; Organizational Change and Adaptation; Organizational Design; Organizational Structure; Business Strategy; Competitive Strategy
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Guadalupe, Maria, and Julie Wulf. "The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization on Corporate Hierarchies." December 2009.
  • December 2009
  • Article

Catering Through Nominal Share Prices

By: Malcolm Baker, Robin Greenwood and Jeffrey Wurgler
We propose and test a catering theory of nominal stock prices. The theory predicts that when investors place higher valuation on low-price firms, managers will maintain share prices at lower levels, and vice-versa. Using measures of time-varying catering incentives... View Details
Keywords: Stocks; Stock Shares; Investment; Investment Return; Price; Theory; Valuation
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Baker, Malcolm, Robin Greenwood, and Jeffrey Wurgler. "Catering Through Nominal Share Prices." Journal of Finance 64, no. 6 (December 2009): 2559–2590. (Internet Appendix.)
  • 05 Jul 2006
  • Working Paper Summaries

The IPS Property

Keywords: by Thomas J. Steenburgh; Financial Services
  • 2008
  • Working Paper

'Fair Marriages:' An Impossibility

By: Bettina-Elisabeth Klaus
For the classical marriage model (introduced in Gale and Shapley, 1962) efficiency and envy-freeness are not always compatible, i.e., fair matchings do not always exist. However, for many allocation of indivisible goods models (see Velez, 2008, and references therein),... View Details
Keywords: Marketplace Matching; Fairness
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Klaus, Bettina-Elisabeth. "'Fair Marriages:' An Impossibility." Harvard Business School Working Paper, No. 09-053, October 2008.
  • May 2010
  • Article

Aggregate Market Reaction to Earnings Announcements

By: William Cready and Umit G Gurun
This analysis identifies a distinct immediate announcement period negative relation between earnings announcement surprises and aggregate market returns. Such a relation implies that market participants use earnings information in forming expectations about expected... View Details
Keywords: Aggregate Earnings; Investment Return; United States
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Cready, William, and Umit G Gurun. "Aggregate Market Reaction to Earnings Announcements." Journal of Accounting Research 48, no. 2 (May 2010): 289–334.
  • December 1992 (Revised March 1997)
  • Case

Peoria Engine Plant (A)

By: Robert S. Kaplan and Amy P. Hutton
Describes the cost control system used at an automobile engine plant for labor and overhead costs. The finance staff prepares daily, weekly, and monthly variance reports against budgets. Department supervisors, finance staff, and the plant manager discuss the use and... View Details
Keywords: Cost Management; Cost Accounting; Budgets and Budgeting; Earnings Management; Reports; Financial Reporting; Management Analysis, Tools, and Techniques; Performance Improvement; Performance Productivity; Factories, Labs, and Plants; Auto Industry
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Kaplan, Robert S., and Amy P. Hutton. "Peoria Engine Plant (A)." Harvard Business School Case 193-082, December 1992. (Revised March 1997.)
  • Forthcoming
  • Article

On the Economic Origins of Concerns Over Women’s Chastity

By: Anke Becker
This paper studies the origins and function of customs and norms that intend to keep women from being promiscuous. Using large-scale survey data from more than 100 countries, I test the anthropological theory that a particular form of preindustrial... View Details
Keywords: Infibulation; Female Sexuality; Paternity Uncertainty; Concern About Women's Chastity; Pastoralism; Economic Anthropology; History; Gender; Social Issues; Culture
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Becker, Anke. "On the Economic Origins of Concerns Over Women’s Chastity." Review of Economic Studies (forthcoming). (Pre-published online August 26, 2024.)
  • 09 May 2011
  • Research & Ideas

Moving From Bean Counter to Game Changer

Buried in the middle layers of many organizations resides a strata of highly skilled experts, from HR managers to risk evaluators, whose collective wisdom and experience could prove invaluable in informing strategic decisions at the highest levels. “They're all... View Details
Keywords: by Kim Girard; Banking
  • 2023
  • Working Paper

Can Evidence-Based Information Shift Preferences Towards Trade Policy?

By: Laura Alfaro, Maggie X. Chen and Davin Chor
Amid public skepticism about trade, we investigate whether evidence-based information--a concise statement of a research finding--can shape preferences towards trade policy. Across survey experiments conducted over 2018-2022 on U.S. general population samples, we... View Details
Keywords: Evidence; Preference; Trade Policy; Information; Trade; Policy; Attitudes
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Alfaro, Laura, Maggie X. Chen, and Davin Chor. "Can Evidence-Based Information Shift Preferences Towards Trade Policy?" Harvard Business School Working Paper, No. 22-062, March 2022. (Revised October 2024. NBER Working Paper Series, No. 31240, May 2023)
  • November 2001 (Revised April 2003)
  • Case

Camp Dresser & McKee: Getting Incentives Right

By: Ashish Nanda
"If you try to use money to motivate behavior, you are in a powerful and dangerous place, especially with engineers and scientists," remarked Tom Furman, CEO of Camp Dresser & McKee, Inc. (CDM), a consulting environmental engineering firm. Historically, CDM had... View Details
Keywords: Motivation and Incentives; Compensation and Benefits; Service Industry
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Nanda, Ashish, and M. Julia Prats. "Camp Dresser & McKee: Getting Incentives Right." Harvard Business School Case 902-122, November 2001. (Revised April 2003.)
  • April 1997
  • Case

Peoria Engine Plant (A): (Abridged)

By: Robert S. Kaplan and Amy P. Hutton
Describes the cost control system used at an automobile engine plant for labor and overhead costs. The finance staff prepares daily, weekly, and monthly variance reports against budgets. Department supervisors, finance staff, and the plant manager discuss the use and... View Details
Keywords: Motivation and Incentives; Cost Management; Financial Reporting; Performance Improvement; Budgets and Budgeting; Auto Industry
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Kaplan, Robert S., and Amy P. Hutton. "Peoria Engine Plant (A): (Abridged)." Harvard Business School Case 197-099, April 1997.
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