Publications

This paper derives two mechanisms through which Bayesian-rational individuals with differing priors will tend to be relatively overconfident about their estimates and predictions, in the sense of overestimating the precision of these estimates. The intuition behind one... View Details

Keywords: Risk and Uncertainty; Measurement and Metrics; Game Theory; Forecasting and Prediction

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May 2011
Article

Overconfidence by Bayesian Rational Agents

By: Eric J. Van den Steen

This paper derives two mechanisms through which Bayesian-rational individuals with differing priors will tend to be relatively overconfident about their estimates and predictions, in the sense of overestimating the precision of these estimates. The intuition behind one... View Details

Keywords: Decision Choices and Conditions; Forecasting and Prediction; Knowledge Acquisition; Risk Management; Prejudice and Bias

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29 May 2012
First Look

First Look: May 29

http://www.hbs.edu/research/pdf/11-120.pdf A Theory of Explicitly Formulated Strategy Authors:Eric J. Van den Steen Abstract When a CEO tries to... View Details

Keywords: Sean Silverthorne

22 Jun 2010
First Look

First Look: June 22

over time. On the Origin of Shared Beliefs (and Corporate Culture) Author:Eric J. Van den Steen Publication:The RAND Journal of Economics... View Details

Keywords: Martha Lagace

19 Nov 2013
First Look

First Look: November 19

paper analyzes the effect of a woman's electoral victory on women's subsequent political participation. Using the regression discontinuity afforded by close elections between women and men in India's state elections, we find that a woman... View Details

Keywords: Sean Silverthorne

05 May 2015
First Look

First Look: May 5

that provide insights on when and why even people who care about morality end up crossing ethical boundaries. May 2015 American Economic Review: Papers and Proceedings Why Do Firms Have Purpose? The Firm's Role as a Carrier of Identity and Reputation By: Henderson,... View Details

Keywords: Carmen Nobel

06 Jun 2017
First Look

First Look at New Research and Ideas: June 6, 2017

https://www.hbs.edu/faculty/Pages/item.aspx?num=52723 forthcoming Management Science A Formal Theory of Strategy By: Van den Steen, Eric J.... View Details

Keywords: Sean Silverthorne

09 Dec 2002
Research & Ideas

Unilever—A Case Study

chairmen and one other director. Beneath the two parent companies a large number of operating companies were active in individual countries. They had many names, often reflecting predecessor firms or companies that had been acquired. Among them were Lever; View Details

Keywords: by Geoffrey Jones; Consumer Products; Entertainment & Recreation; Food & Beverage; Manufacturing; Retail

December 2011 (Revised June 2013)
Supplement

Bananas (B)

As owner and CEO, Wim Van der Borght had grown Bananas in 8 years from a 4.5 million euro company into a 40 million euro group of companies with a range of field marketing activities in Belgium and the Netherlands. The core of the group consisted of two companies —... View Details

Keywords: Culture; Competitive Advantage; Organizational Culture; Growth and Development Strategy

December 2011 (Revised June 2013)
Case

Bananas (A)

As owner and CEO, Wim Van der Borght had grown Bananas in 8 years from a 4.5 million euro company into a 40 million euro group of companies with a range of field marketing activities in Belgium and the Netherlands. The core of the group consisted of two companies —... View Details

Keywords: Sustainable Competitive Advantage; Growth Strategy; Strategic Analysis; PVA; Culture As Commitment; Competitive Advantage; Organizational Culture; Growth and Development Strategy; Competitive Strategy; Mergers and Acquisitions; Strategy; Corporate Strategy; Belgium

September 2021 (Revised March 2024)
Case

Tesla in 2023: 'Electrified' Competition

By: Eric Van den Steen, Ramon Casadesus-Masanell and Karen Elterman

Over its 17 years in existence, Tesla had redefined people’s view of electric cars, and in 2020, the company saw its stock rise by more than 700% to became the most valuable carmaker in the world. In December 2020, Tesla celebrated its fifth consecutive quarter of... View Details

Keywords: Barrier To Entry; Competitive Advantage; Innovation; Tesla; Automotive Industry; Sustainable Competitive Advantage; Values; Vision; Learning By Doing; Economies Of Scale; Electric Vehicle; Scenario Planning; Batteries; Competitive Strategy; Product Positioning; Profit; Competition; Industry Growth; Auto Industry

04 Feb 2014
First Look

First Look: February 4

http://ssrn.com/abstract=2280370 A Formal Theory of Strategy By: Van den Steen, Eric Abstract—What makes a decision strategic? When is strategy most important? This paper... View Details

Keywords: Sean Silverthlorne

28 Sep 2010
First Look

First Look: September 28, 2010

PublicationsFamilienunternehmen in Westdeutschland. Corporate Governance und Gesellschafterkultur seit den 1960er Jahren (Family business in West Germany since the 1960s) Authors:Christina Lubinski Publication:Vol. 21, Schriftenreihe... View Details

Keywords: Sean Silverthorne

March 2014 (Revised March 2018)
Case

Red Bull (A)

By: Eric Van den Steen and Carin-Isabel Knoop

Despite facing giants like Coke, Pepsi, and Budweiser—with obvious potential sources of competitive advantage—Red Bull had established itself as the U.S. market leader in energy drinks. By 2008, however, Red Bull's dominance was challenged as Monster drinks surpassed... View Details

Keywords: Judo Strategy; Judo Economics; Sustainable Competitive Advantage; Imitation; Strategy; Competitive Strategy; Competitive Advantage; Market Entry and Exit; Food and Beverage Industry; United States

August 2013 (Revised November 2020)
Case

Tesla Motors

In mid-2013, Tesla Motors was riding a wave of success: It had launched its first really mass-produced car—the model S—to rave reviews; had recently raised first-year production targets; and had started taking orders for its next car, the Model X. Tesla seemed to be on... View Details

Keywords: Barriers To Entry; Economic Analysis; Learning Curve; Economies Of Scale; Innovation; Market Entry; Sustainable Competitive Advantage; Vision; Strategy And Leadership; Strategy; Competitive Strategy; Market Entry and Exit; Competitive Advantage; Technological Innovation; Leadership; Learning; Economics; Analysis; Auto Industry

October 2018
Article

Strategy and the Strategist: How it Matters Who Develops the Strategy

By: Eric J. Van den Steen

This paper addresses primarily two questions. First, when (and why) should a company’s strategy be developed by its CEO versus by some outside analyst or other insider? Second, how does strategy interact with vision (in the sense of a strong belief about the right... View Details

Keywords: Strategy And Leadership; Strategy And Execution; Strategy; Leadership