Publications

February 2020
Article

Why Prosocial Referral Incentives Work: The Interplay of Reputational Benefits and Action Costs

By: Rachel Gershon, Cynthia Cryder and Leslie K. John

While selfish incentives typically outperform prosocial incentives, in the context of customer referral rewards, prosocial incentives can be more effective. Companies frequently offer “selfish” (i.e., sender-benefiting) referral incentives, offering customers financial... View Details

Keywords: Incentives; Prosocial Behavior; Judgment And Decision-making; Referral Rewards; Motivation and Incentives; Consumer Behavior; Decision Making

15 Jan 2016
Working Paper Summaries

Incentives for Prosocial Behavior: The Role of Reputations

Keywords: by Christine L. Exley

September 2023
Article

A Pull versus Push Framework for Reputation

By: Jillian J. Jordan

Reputation is a powerful driver of human behavior. Reputation systems incentivize 'actors' to take reputation-enhancing actions, and 'evaluators' to reward actors with positive reputations by preferentially cooperating with them. This article proposes a reputation... View Details

Keywords: Reputation; Behavior; Game Theory

24 May 2004
Research & Ideas

When Reputation Trumps Regulation

foreign presence to gather the evidence necessary for a successful prosecution in U.S. federal court. Firms with reputational assets have a strong positive incentive to continue to live up to those... View Details

Keywords: by Ann Cullen

17 Oct 2024
Research & Ideas

The Reputation Risks of Sharing Fake News

media would benefit their personal reputations more than spreading misleading articles, the research shows. Furthermore, when political articles are shared on Twitter (now X), accurate information tends to garner more approval, finds... View Details

Keywords: by Avery Forman

March 2020
Article

Governance Through Shame and Aspiration: Index Creation and Corporate Behavior

By: Akash Chattopadhyay, Matthew D. Shaffer and Charles C.Y. Wang

After decades of deprioritizing shareholders' economic interests and low corporate profitability, Japan introduced the JPX-Nikkei400 in 2014. The index highlighted the country's "best-run" companies by annually selecting the 400 most profitable of its large and liquid... View Details

Keywords: JPX-Nikkei 400 Index; Status Incentives; Return On Equity; Capital Efficiency; Social Norms; Index Inclusion; Reputation Incentives; Motivation and Incentives; Corporate Governance; Behavior; Investment Return; Status and Position; Japan

March 2011 (Revised December 2019)
Case

Wealth Management Crisis at UBS (A)

By: Paul M. Healy

The case describes the challenges that UBS faced as a result of the U.S. Department of Justice (DOJ) investigation for tax fraud, that claimed that UBS had helped some 52,000 U.S. residents hide billions of dollars in untaxed assets in secret Swiss accounts between... View Details

Educators

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Article

The Market Design and Policy of Online Review Platforms

By: Benjamin Edelman

I present the institutions and incentives of online reviews, including attracting initial reviews, assuring truthful reviews of genuine experiences, and avoiding inflated or deceptive reviews. I also explore the competition and consumer protection concerns associated... View Details

Keywords: Reviews; Reputation; Platforms; Marketplaces; Deception; Market Design; Multi-Sided Platforms; Law; Online Technology; Information Technology Industry; Telecommunications Industry; Accommodations Industry; Retail Industry

March 2011 (Revised February 2018)
Supplement

Wealth Management Crisis at UBS (B)

By: George Serafeim

The case describes the resolution of the U.S. Department of Justice (DOJ) investigation for tax fraud and the increasing pressure on the wealth management business. View Details

Purchase

November–December 2014
Article

Accountable? The Problems and Solutions of Online Ad Optimization

By: Benjamin Edelman

Online advertising might seem to be the most measurable form of marketing ever invented. Comprehensive records can track who clicked what ad—and often who saw what ad—to compare those clicks with users' subsequent purchases. Ever-cheaper IT makes this tracking... View Details

Keywords: Online Advertising; Fraud; Optimization; Incentives; Digital Marketing; Contracts; Marketing Strategy; Organizational Design

30 Jan 2024
Research & Ideas

‘Intrinsic Joy’ Sparks Ideas Better than Cash

Columbia University. When AI, open source, and incentives collide The findings have implications for any kind of innovation drive stemming from crowdsourcing, a method of gathering information from large groups that has been around for... View Details

Keywords: by Rachel Layne; Technology

27 Jul 2021
Op-Ed

What Pirates Can Teach Us About Leadership

In the deep heat of an 18th-century summer, a crew of pirates was sailing off the Virginia coast when a lookout spotted a merchant ship to the south. Springing into action, the pirates launched an attack, rocking the merchant ship with a cascade of musket balls and... View Details

Keywords: by Francesca Gino

09 Apr 2018
Sharpening Your Skills

The Dark Side of Performance Bonuses

carefully, can open a box full of unintended consequences that ultimately harm rather than help the organization. The financial crisis of 2008 was partially fueled by origination bonuses paid to bank loan officers who were incented to... View Details

Keywords: by Sean Silverthorne

03 Nov 2010
Working Paper Summaries

How Did Increased Competition Affect Credit Ratings?

Keywords: by Bo Becker & Todd Milbourn; Financial Services

22 Apr 2010
Working Paper Summaries

Audit Quality and Auditor Reputation: Evidence from Japan

Keywords: by Douglas J. Skinner & Suraj Srinivasan

2015
Working Paper

Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud

By: Michael Luca and Georgios Zervas

Consumer reviews are now part of everyday decision-making. Yet, the credibility of these reviews is fundamentally undermined when businesses commit review fraud, creating fake reviews for themselves or their competitors. We investigate the economic incentives to commit... View Details

Keywords: Information; Competition; Internet and the Web; Ethics; Reputation; Social and Collaborative Networks; Retail Industry; Food and Beverage Industry

SSRN

Spring 2015
Article

Sovereign Debt Restructuring: Evaluating the Impact of the Argentina Ruling

By: Laura Alfaro

Recent rulings in the ongoing litigation over the pari passu clause in Argentinian sovereign debt instruments have generated considerable controversy. Some official-sector participants and academic articles have suggested that the rulings will disrupt or impede... View Details

December 2016
Article

Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud

By: Michael Luca and Georgios Zervas

Consumer reviews are now part of everyday decision making. Yet, the credibility of these reviews is fundamentally undermined when businesses commit review fraud, creating fake reviews for themselves or their competitors. We investigate the economic incentives to commit... View Details

Keywords: Ethics; Marketing Reference Programs

Purchase

May 2014
Article

Representative Evidence on Lying Costs

By: Johannes Abeler, Anke Becker and Armin Falk

A central assumption in economics is that people misreport their private information if this is to their material benefit. Several recent models depart from this assumption and posit that some people do not lie or at least do not lie maximally. These models invoke many... View Details

Keywords: Private Information; Lying Costs; Tax Morale; Representative Experiment; Information; Microeconomics; Taxation; Behavior