Publications

Article

The Price Impact of Joining a Currency Union: Evidence from Latvia

By: Alberto Cavallo, Brent Neiman and Roberto Rigobon

Does membership in a currency union matter for a country’s international relative prices? The answer to this question is critical for thinking about the implications of joining (or exiting) a common currency area. This paper is the first to use high-frequency... View Details

Keywords: Currency Union; Exchange Rate; Law Of One Price; Currency Exchange Rate; Price; Latvia

26 Jul 2010
Research & Ideas

Yes, You Can Raise Prices in a Downturn

higher prices," says Frank V. Cespedes, a senior lecturer at Harvard Business School, who spent 12 years running a professional services firm. That's right. Higher prices, not lower. “Competing on price is ultimately a bet on your... View Details

Keywords: by Sean Silverthorne; Retail; Consumer Products

Article

Distance and Political Boundaries: Estimating Border Effects under Inequality Constraints

By: Fernando Borraz, Alberto Cavallo, Roberto Rigobon and Leandro Zipitria

The border effects literature finds that political boundaries have a large impact on relative prices across locations. In this paper we show that the standard empirical specification suffers from selection bias, and propose a new methodology based on binned-quantile... View Details

Keywords: Border Effects; Prices

24 Apr 2019
Research & Ideas

The 'Amazon Effect' Is Changing Online Price Competition—and the Fed Needs to Pay Attention

prices across channels or locations,” Cavallo says. “So, while retailers currently have the technology to customize prices based on demographics, fairness concerns are limiting their ability to do so.”... View Details

Keywords: by Roberta Holland; Retail

January 2021
Article

The Effects of Menu Costs on Retail Performance: Evidence from Adoption of the Electronic Shelf Label Technology

By: Ioannis Stamatopoulos, Achal Bassamboo and Antonio Moreno

We use the adoption of electronic shelf labels (ESLs) by an international grocery retailer in 2015 to identify the effects of physical menu costs (i.e., labor and material costs of price adjustment) on retail performance. We find that the installation of ESLs increased... View Details

Keywords: Retail Operations; Dynamic Pricing; Revenue Management; Operations; Price; Revenue; Management; Retail Industry

July 2022 (Revised February 2024)
Teaching Note

The DivaCup: Navigating Distribution and Growth

By: Ayelet Israeli

Teaching Note for HBS Case No. 519-055. When the mother-daughter founders of DivaCup set out with a mission to disrupt the menstrual care industry with an innovative product form, they initially struggled to gain legitimacy and convince retailers to carry their unique... View Details

Purchase

March 2019 (Revised April 2021)
Case

The DivaCup: Navigating Distribution and Growth

By: Ayelet Israeli

When the mother-daughter founders of DivaCup set out with a mission to disrupt the menstrual care industry with an innovative product form, they initially struggled to gain legitimacy and convince retailers to carry their unique product. Fifteen years later, the... View Details

Educators

Purchase

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

2003
Article

Confirming Management Earnings Forecasts, Earnings Uncertainty, and Stock Returns

By: Michael B. Clement, Richard Frankel and Jeffrey Miller

In this study we examine the association among confirming management forecasts, stock prices, and analyst expectations. Confirming management forecasts are voluntary disclosures by management that corroborate existing market expectations about future earnings. This... View Details

Keywords: Forecasting and Prediction; Corporate Disclosure; Price; Stocks; Investment Return

Purchase

2018
Working Paper

OTC Intermediaries

By: Andrea L. Eisfeldt, Bernard Herskovic, Sriram Rajan and Emil Siriwardane

Over-the-counter (OTC) markets for financial assets are dominated by a relatively small number of core intermediaries and a large number of peripheral customers. In this paper, we develop a model of trade in a core-periphery network and estimate its key structural... View Details

Keywords: OTC Markets; Intermediaries; Dealers; Credit Default Swaps; Risk Sharing; Networks; Price; Risk and Uncertainty

SSRN

2008
Working Paper

Some Neglected Axioms in Fair Division

By: John W. Pratt

Conditions one might impose on fair allocation procedures are introduced. Nondiscrimination requires that agents share an item in proportion to their entitlements if they receive nothing else. The "price" procedures of Pratt (2007), including the Nash... View Details

Keywords: Resource Allocation; Valuation; Price; Cost