Influence through ignorance.
An individual (the leader) with free access to information decides
how much public evidence to collect. Conditional on this information,
another individual with conflicting preferences (the . . .
The rules of standard-setting organizations: an empirical
analysis.
This article empirically explores standard-setting
organizations' policy choices. Consistent with our earlier
theoretical work, we find (i) a negative relationship between the extent
to which an . . .
Innovation, endogenous overinvestment, and incentive pay.
We analyze how two key managerial tasks interact: that of growing
the business through creating new investment opportunities and that of
providing accurate information about these opportunities in . . .
The price of advice.
We develop a model of consulting (advising) where the role of the
consultant is to reveal signals to her client that refine the
client's original private estimate of the profitability of a
project. . . .
Experts' agency problems: evidence from the prescription
drug market in Japan.
This article examines the physician-patient agency relationship in
the context of the prescription drug market in Japan. In this market,
physicians often both prescribe and dispense drugs and can . . .
Upfront payments and exclusion in downstream markets.
Although up front payments are often observed in contracts between
manufacturers and retailers, little is known about their competitive
effects or the role retailers play in securing them. In this . . .
Collusion with (almost) no information.
We analyze noncooperative collusion in an infinitely repeated
Bertrand game, where each of the n firms receives a privately observed,
i.i.d, cost shock in each period and firms only (and privately) . . .
Strategic ex ante contracts: rent extraction and opportunity
costs.
This article cosiders the possibility that a seller can contract
with one uninjormed buyer prior to an auction involving two potential
buyers. The seller's optimal strategic ex ante contract . . .
Stock recommendation of an analyst who trades on own
account.
This article analyzes the provision of information acquisition and
truthful reporting incentives to a financial analyst who can privately
trade on own account. In a binary message and state space, . . .
Do buyer-size discounts depend on the curvature of the surplus
function? Experimental tests of bargaining models.(Statistical
ta
A number of recent theoretical papers have shown that, for
buyer-size discounts to emerge in a bargaining model, the total surplus
function over which parties bargain must have certain . . .
The boundaries of firms as information barriers.
When contracts are incomplete, the property-rights theory of firms
suggests that ownership of physical assets provides better outside
options, which in turn strengthen the owner's incentives to . . .
Making a difference.(analysis of performance-related compensation
)
Despite the potential for free-riding, workers motivated by
"making a difference" to the mission or output of an
establishment may donate labor to it. When the establishment . . .
The economics of earnings manipulation and managerial
compensation.(Statistical table)
This article examines managerial compensation in an environment
where managers may take a hidden action that affects the actual earnings
of the firm. When realized, these earnings constitute hidden . . .
Signalling and entry deterrence: a multidimensional
analysis.
I consider whether a privately informed incumbent can use limit
pricing and upward distortions in advertising to deter profitable entry.
Profitable entry is not deterred when the incumbent is . . .
The role of lockups in takeover contests.(Statistical
data)
We examine breakup fees and stock lockups as devices for
prospective target firms to encourage bidder participation in takeover
contests. Unless bidding costs for the first bidder are too . . .
Do investors forecast fat firms? Evidence from the gold-mining
industry.
Conventional economic theory assumes that firms minimize costs
given output, but news articles and managers indicate that firms cut
costs when they are in economic distress and grow fat when they . . .
The design of patent pools: the determinants of licensing
rules.(Statistical table)
Patent pools are an important but little-studied economic
institution. In this article, we first make a set of predictions about
the licensing terms associated with patent pools. The . . .
Go for broke or play it safe? Dynamic competition with choice of
variance.
We consider a differential game in which the joint choices of the
two players influence the variance, but not the mean, of the
one-dimensional state variable. We show that a pure strategy . . .
Advertising dynamics and competitive advantage.(Statistical
table)
Can advertising lead to a sustainable competitive advantage? To
answer this question, we propose a dynamic model of advertising
competition where firms repeatedly advertise, compete in the . . .
Free entry and social efficiency under vertical
oligopoly.
We analyze a successive vertical oligopoly model that incorporates
vertical relationships between industries and demonstrate that free
entry in an industry that produces a homogeneous product can . . .
|
|