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Title |
Researcher |
Other |
200911Name-Letter BrandingBrendlMiguel November 2009 |
Name-Letter Branding200911BrendlMiguel Name-Letter Branding
Most people would scoff at the idea that their names can influence their choices, especially when dealing with major decisions such as selecting a career, a home, or even a partner. However, Miguel Brendl finds that your liking for the letters of your name, which is really driven by your liking for yourself, might spill over to objects and influence your choices. |
BrendlMiguel200911Name-Letter Branding Miguel Brendl
Amitava Chattopadhyay Brett W Pelham Mauricio Carvallo |
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200911The Effects of Health On WealthCookKeziah November 2009 |
The Effects of Health On Wealth200911CookKeziah The Effects of Health On Wealth
Americans without health insurance are one major illness away from financial catastrophe. David Dranove and his co-authors found uninsured middle aged people suffer lose nearly half their assets if they experience a major illness. |
CookKeziah200911The Effects of Health On Wealth Keziah Cook
David Dranove Andrew Sfekas |
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200911Losing TouchGalinskyAdam November 2009 |
Losing Touch200911GalinskyAdam Losing Touch
Why are some managers seemingly incapable of understanding their subordinates’ points of view? Adam Galinsky finds that high-power individuals anchor too heavily on their own perspectives and demonstrate a diminished ability to correctly perceive the perspective of others. |
GalinskyAdam200911Losing Touch Adam D. Galinsky
Joe C Magee M. Ena Inesi Deborah Gruenfeld |
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200911Beneficial or Detrimental Legislation?CohenDaniel November 2009 |
Beneficial or Detrimental Legislation?200911CohenDaniel Beneficial or Detrimental Legislation?
Responding to reports of corrupt business behavior by Enron, Tyco, and other large corporations, the U.S. Congress passed the Sarbanes-Oxley Act in 2002. Thomas Lys suggests that the legislation has fallen short of its goal of controlling illegal business practices. |
CohenDaniel200911Beneficial or Detrimental Legislation? Daniel Cohen
Aiyesha Dey Thomas Lys |
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200911In with the “In” CrowdHochbergYael November 2009 |
In with the “In” Crowd200911HochbergYael In with the “In” Crowd
Like the cool kids in high school who discourage those who “don’t belong” from encroaching on their turf, Yael Hochberg notes that venture capitalists in tightly networked geographic markets deter new entrants using some of the same behaviors exhibited in high school hallways. |
HochbergYael200911In with the “In” Crowd Yael Hochberg
Alexander Ljungqvist Yang Lu |
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200910Is Accounting that’s Good for General Motors Good for Detroit?DrebinAllan October 2009 |
Is Accounting that’s Good for General Motors Good for Detroit?200910DrebinAllan Is Accounting that’s Good for General Motors Good for Detroit?
People interested in government organizations have different information needs than investors in for-profit businesses. Allan Drebin maintains that the objectives of financial reporting for business and government should also be different. |
DrebinAllan200910Is Accounting that’s Good for General Motors Good for Detroit? Allan Drebin
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200910The Art of PersuasionLeeAngela October 2009 |
The Art of Persuasion200910LeeAngela The Art of Persuasion
What types of messages are most persuasive? For example, would you be more likely to buy a TiVo if an ad described it as offering you freedom or if it explained how you could replay sports events? |
LeeAngela200910The Art of Persuasion Angela Y. Lee
Punam Anand Keller Brian Sternthal |
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200910Don’t Stand by MeGuniaBrian October 2009 |
Don’t Stand by Me200910GuniaBrian Don’t Stand by Me
When business leaders leave organizations following poor decisions, constituents often find comfort in replacing them with insiders — others familiar with the problem and original choices. |
GuniaBrian200910Don’t Stand by Me Brian C. Gunia
Niro Sivanathan Adam D. Galinsky |
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200910Tort Reform No Miracle CureAvrahamRonen October 2009 |
Tort Reform No Miracle Cure200910AvrahamRonen Tort Reform No Miracle Cure
The lawyers can relax. There’s no need to follow Shakespeare’s advice to kill them after all. |
AvrahamRonen200910Tort Reform No Miracle Cure Ronen Avraham
Leemore S. Dafny Max M. Schanzenbach |
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200910Colored by the Company You KeepNamMyungwoo October 2009 |
Colored by the Company You Keep200910NamMyungwoo Colored by the Company You Keep
The Aston Martin sports car has been repeatedly featured in James Bond movies. This use is predicated on the belief that positive associations with a context transfer to the target brand. Brian Sternthal tells us that marketers should pay close attention to managing not only their brands but also their brands’ environment. |
NamMyungwoo200910Colored by the Company You Keep Myungwoo Nam
Brian Sternthal |
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200910Pyramidal Blind SpotsPerkinsSusan October 2009 |
Pyramidal Blind Spots200910PerkinsSusan Pyramidal Blind Spots
Foreign companies often enter joint venture partnerships unaware of the dominating corporate governance practices in developing countries. Susan Perkins outlines the potential costs of not recognizing and accounting for these dynamics in the design of a joint venture. |
PerkinsSusan200910Pyramidal Blind Spots Susan E Perkins
Randall Morck Bernard Yeung |
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200910Reading the Org ChartBesankoDavid October 2009 |
Reading the Org Chart200910BesankoDavid Reading the Org Chart
A firm’s organizational chart can reveal important insights into the inner workings of a firm. David Besanko suggests that the firm’s structure can also reveal much about its competencies and competitive advantages. |
BesankoDavid200910Reading the Org Chart David A. Besanko
Pierre Régibeau Katharine E Rockett |
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200909Suspiciously ShortMcAnallyMary Lea September 2009 |
Suspiciously Short200909McAnallyMary Lea Suspiciously Short
Stock options are often seen as a way to align both executive and shareholder interests. Yet accepted accounting principles leave management with some leeway when reporting earnings, inviting the possibility of stock price manipulation. Anup Srivastava and his colleagues discovered a surprising link between executive compensation packages and firms that miss earnings targets. |
McAnallyMary Lea 200909Suspiciously Short Mary Lea McAnally
Anup Srivastava Connie D Weaver |
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200909There’s No Place Like HomeDziudaWioletta September 2009 |
There’s No Place Like Home200909DziudaWioletta There’s No Place Like Home
Investors strongly tilt their portfolios toward domestic assets and away from foreign instruments in a phenomenon called “home bias.” Wioletta Dziuda discusses how better information could level the imbalance between foreign and domestic mutual fund investments. |
DziudaWioletta200909There’s No Place Like Home Wioletta Dziuda
Jordi Mondria |
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200909Should I Stay or Should I Go?ChernevAlexander September 2009 |
Should I Stay or Should I Go?200909ChernevAlexander Should I Stay or Should I Go?
Alexander Chernev has spent his career studying consumer behavior. In a recent study he found that a consumer’s personal goals, particularly their concern for safety and security, strongly influence how likely they are to switch to something new or stay with what they know. |
ChernevAlexander200909Should I Stay or Should I Go? Alexander Chernev
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200909Agreeing to DisagreeBanerjeeSnehal September 2009 |
Agreeing to Disagree200909BanerjeeSnehal Agreeing to Disagree
The standard view of how stock prices move—that investors act rationally on information and that markets are efficient—does not account for price drift. Snehal Banerjee explains that price drift may occur because investors agree to disagree about the average valuation of an asset. |
BanerjeeSnehal200909Agreeing to Disagree Snehal Banerjee
Ron Kaniel Ilan Kremer |
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200908The Biochemistry of Financial RiskSapienzaPaola August 2009 |
The Biochemistry of Financial Risk200908SapienzaPaola The Biochemistry of Financial Risk
Testosterone may play a surprising role in financial risk. New research by Paola Sapienza and her colleagues shows how the amount of testosterone in our veins could influence our monetary decisions. |
SapienzaPaola200908The Biochemistry of Financial Risk Paola Sapienza
Luigi Zingales Dario Maestripieri |
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200908Beware the Siren’s SongNordgrenLoran August 2009 |
Beware the Siren’s Song200908NordgrenLoran Beware the Siren’s Song
Most people overestimate their capacity to control their impulses. According to Loran Nordgren, they miscalculate the amount of temptation they can really handle, which in turn leads to a greater likelihood of indulging impulsive or addictive behavior. |
NordgrenLoran200908Beware the Siren’s Song Loran Nordgren
Joop van der Pligt Frenk van Harreveld |
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200908Mysterious ProfitBurnsideA. Craig August 2009 |
Mysterious Profit200908BurnsideA. Craig Mysterious Profit
The carry trade is an enigma in the financial world. When experts attempt to explain its continued profitability using traditional risk factors such as consumption growth, stock market returns, and other more complex predictors, they fail miserably. Sergio Rebelo and his colleagues discovered a tantalizing new way to minimize the risk posed by the unpredictable. |
BurnsideA. Craig200908Mysterious Profit A. Craig Burnside
Martin Eichenbaum Isaac Kleshchelski Sergio Rebelo |
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200908Rational Retail PricingSrinivasanShuba August 2009 |
Rational Retail Pricing200908SrinivasanShuba Rational Retail Pricing
If there is one thing you would assume from basic marketing principles, it is that retailers should adapt prices to changing demand. Vincent Nijs notes, however, that if the cost of adapting prices exceeds the benefits, they won’t. |
SrinivasanShuba200908Rational Retail Pricing Shuba Srinivasan
Koen Pauwels Vincent Nijs |
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200908Super-Premium Ice CreamMazzeoMichael August 2009 |
Super-Premium Ice Cream200908MazzeoMichael Super-Premium Ice Cream
When regulators evaluate proposed mergers and acquisitions, they use sophisticated econometric models. Current models consider price but not product variety. Michael Mazzeo and colleagues provide insights into conditions that result in merged companies providing greater product variety. |
MazzeoMichael200908Super-Premium Ice Cream Michael J. Mazzeo
Michaela Draganska Katja Seim |
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200908Currency Exchange RatesAndersenTorben August 2009 |
Currency Exchange Rates200908AndersenTorben Currency Exchange Rates
It seems that any world event can shift exchange rates, but what economic, business, political, and social events truly drive the dollar down—or up? Torben Andersen helps us understand what lies behind daily rises and falls in the value of a dollar. |
AndersenTorben200908Currency Exchange Rates Torben Andersen
Tim Bollerslev Francis X. Diebold Clara Vega |
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200907The Price of a Billable HourUzziBrian July 2009 |
The Price of a Billable Hour200907UzziBrian The Price of a Billable Hour
Does the price of legal services change based on personal ties with clients, corporate board membership, and firm status? Brian Uzzi looks at how these social features might influence fees firms charge for their services. |
UzziBrian200907The Price of a Billable Hour Brian Uzzi
Ryon Lancaster |
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200907Banks, Bonds, and Accounting QualityBharathSreedhar July 2009 |
Banks, Bonds, and Accounting Quality200907BharathSreedhar Banks, Bonds, and Accounting Quality
When corporations want to borrow, they have a several options. Jayanthi and Shyam Sunder show how a borrower’s financial reporting quality affects not only the choice between private and public debt markets but also the loan agreement terms. |
BharathSreedhar200907Banks, Bonds, and Accounting Quality Sreedhar Bharath
Jayanthi Sunder Shyam Sunder |
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200907Rationalization in Decision MakingCherepanovVadim July 2009 |
Rationalization in Decision Making200907CherepanovVadim Rationalization in Decision Making
Our inability to rationalize can constrain our ability to pick a favored option. Timothy Feddersen shows how rationalization impacts choices and can help economists understand why people make decisions that violate standard economic theories. |
CherepanovVadim200907Rationalization in Decision Making Vadim Cherepanov
Timothy Feddersen Alvaro Sandroni |
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200907Walking AwayGuisoLuigi July 2009 |
Walking Away200907GuisoLuigi Walking Away
With more than 20 percent of U.S. homeowners realizing negative equity, strategic defaults are on the rise. Paola Sapienza notes that moral and social considerations play a crucial role in dissuading householders from taking that route—that is, until potential losses reach a certain threshold. |
GuisoLuigi200907Walking Away Luigi Guiso
Paola Sapienza Luigi Zingales |
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200907$1,000 Cash BackBusseMeghan July 2009 |
$1,000 Cash Back200907BusseMeghan $1,000 Cash Back
Auto manufacturers often turn to rebates to stimulate sales. The two most commonly used subsidies are payments made directly to customers and payments made directly to car dealers. Which one works better? Meghan Busse and Florian Zettelmeyer help sort out the answer. |
BusseMeghan200907$1,000 Cash Back Meghan Busse
Jorge Silva-Risso Florian Zettelmeyer |
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200906Driven OffshoreHostakPeter June 2009 |
Driven Offshore200906HostakPeter Driven Offshore
In 2002 the U.S. Congress responded to the corporate governance crisis that followed the scandal-ridden behavior of Enron, Tyco, WorldCom, and other high-profile corporations by passing the Sarbanes-Oxley Act (SOX). The legislation set out to restore investors’ confidence in financial markets by improving corporate governance. However, in the case of at least one group of companies, the act seems to have produced unexpected results. A study co-authored by Thomas Lys (Professor of Accounting Information & Management at the Kellogg School of Management) indicates that the managements of poorly governed foreign-domiciled firms responded to the act by closing shop in the United States. |
HostakPeter200906Driven Offshore Peter Hostak
Emre Karaoglu Thomas Lys Yong Yang |
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200906Sales Force EffectivenessZoltnersAndris June 2009 |
Sales Force Effectiveness200906ZoltnersAndris Sales Force Effectiveness
Salespeople spend their days working on the front lines of business, solving client problems and generating revenue. Their mission-critical efforts impact the balance sheet and can delight management and shareholders. |
ZoltnersAndris200906Sales Force Effectiveness Andris A. Zoltners
Prabhakant Sinha Sally E. Lorimer |
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200906Picking Up Pennies for ProfitHestonSteven June 2009 |
Picking Up Pennies for Profit200906HestonSteven Picking Up Pennies for Profit
There’s more to “buy low, sell high” than just buying low and selling high. Twitchy markets spew endless, jittery streams of temporary highs and retreating lows. Which low is the “buy” low? When is the “sell” high? A sellers’ high today may be humdrum in a week. Noontime buyers’ rock-bottom low might not impress an hour later. Given these fluctuations in stock prices and the recalibration of highs and lows, traders probe the peaks and valleys in search of patterns and values. New research by Robert Korajczyk (Professor of Finance at the Kellogg School of Management), Kellogg alumnus Ronnie Sadka (Professor of Finance at Boston College), and Steven L. Heston (Professor of Finance at the University of Maryland) reveals surprising patterns that can help predict daily peaks in stock price. This work was deemed so influential in the field of quantitative investment that it was awarded the 2009 Crowell Prize by PanAgora Asset Management. |
HestonSteven200906Picking Up Pennies for Profit Steven L. Heston
Robert Korajczyk Ronnie Sadka |
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200906Counterfeit CompetitionQianYi June 2009 |
Counterfeit Competition200906QianYi Counterfeit Competition
Strong intellectual property rights (IPRs) are generally considered necessary to encourage innovation and protect the price of authentic products. However, research by Yi Qian (Assistant Professor of Marketing at the Kellogg School of Management) shows that under some circumstances the quality and prices of authentic goods can actually increase with the market entry of counterfeit products. |
QianYi200906Counterfeit Competition Yi Qian
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200906Global Dual Sourcing StrategiesAllonGad June 2009 |
Global Dual Sourcing Strategies200906AllonGad Global Dual Sourcing Strategies
Many researchers say that their greatest flashes of inspiration come not from extraordinary events but from everyday activities. Intuitive leaps are triggered by observing life unfolding around them, they say. We are all familiar with the anecdote - historically accurate or not - of an apple falling on Isaac Newton’s head while he rested beneath the tree, jolting him to contemplate universal gravitation. |
AllonGad200906Global Dual Sourcing Strategies Gad Allon
Jan A. Van Mieghem |
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200905What’s in a Frame Anyway?RuckerDerek May 2009 |
What’s in a Frame Anyway?200905RuckerDerek What’s in a Frame Anyway?
We have all been taught not to judge by appearances because our conclusions might be wrong. However, it seems we cannot help relying on appearances to draw inferences and form judgments. |
RuckerDerek200905What’s in a Frame Anyway? Derek D. Rucker
Richard E. Petty Pablo Briñol |
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200905Too Conscious to Decide?DijksterhuisAp May 2009 |
Too Conscious to Decide?200905DijksterhuisAp Too Conscious to Decide?
For centuries, humans have been thinking about thinking. In the early 1600s, Rene Descartes famously asserted cogito ergo sum, “I think, therefore I am.” In the late seventeenth century, John Locke was among the first to write about consciousness. |
DijksterhuisAp200905Too Conscious to Decide? Ap Dijksterhuis
Maarten Bos Loran Nordgren Rick van Baaren |
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200905People are TalkingGopinathShyam May 2009 |
People are Talking200905GopinathShyam People are Talking
Talk may be cheap, but listening to what people are saying about your product can be a valuable method of improving corporate performance. According to recent research, there is a measurable connection between what is being said about a product in online posts and real-time customer behavior. |
GopinathShyam200905People are Talking Shyam Gopinath
Jacquelyn Thomas Lakshman Krishnamurthi |
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200905The Teddy Bear EffectLivingstonRobert May 2009 |
The Teddy Bear Effect200905LivingstonRobert The Teddy Bear Effect
Diapers in the boardroom—though surely the topic of a few off-color attempts at office humor—are not hallmarks of corporate excellence. But a cherub-cheeked babyface in the executive office? Depending on its hue, that face may be a naturally-endowed but subtle tool of an accomplished leader atop a seemingly impenetrable hierarchy. |
LivingstonRobert200905The Teddy Bear Effect Robert W. Livingston
Nicholas Pearce |
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200905Liquidity RulesCaballeroRicardo May 2009 |
Liquidity Rules200905CaballeroRicardo Liquidity Rules
On the surface, the meltdown of the U.S. subprime mortgage market should not have triggered a worldwide financial crisis. Worst-case estimates put subprime mortgage losses at $250 billion—a drop in the bucket compared to the many trillions of dollars worth of financial instruments traded around the globe. |
CaballeroRicardo200905Liquidity Rules Ricardo J. Caballero
Arvind Krishnamurthy |
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200904Living Outside the BoxMadduxWilliam April 2009 |
Living Outside the Box200904MadduxWilliam Living Outside the Box
Living in another country can be a cherished experience, but new research suggests it might also help expand minds. This research, published by the American Psychological Association, is the first of its kind to look at the link between living abroad and creativity. |
MadduxWilliam200904Living Outside the Box William Maddux
Adam D. Galinsky |
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200904Growing Socially Responsible MarketsWeberKlaus April 2009 |
Growing Socially Responsible Markets200904WeberKlaus Growing Socially Responsible Markets
There is an assumption that companies start producing environmentally friendly or “green” products when consumers demand them. As gas prices soar, truck and sport utility vehicle plants close down, and fuel-efficient vehicles become the rage in today’s markets, the reality of this truth is hard to dispute. |
WeberKlaus200904Growing Socially Responsible Markets Klaus Weber
Kathryn Heinze Michaela De Soucey |
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200904The Global “Idea” MarketSpulberDaniel April 2009 |
The Global “Idea” Market200904SpulberDaniel The Global “Idea” Market
When we imagine international trade, we conjure up images of supertankers and massive container ships, or maybe ships laden with exotic cargoes of rum, coffee, and spices. But international trade today involves much more than crude oil and bananas. We live in a global marketplace of ideas, when trademarks, patents, and research are moving from Argentina to Tanzania at the speed of light. In the Internet age, people are trading ideas around the world. |
SpulberDaniel200904The Global “Idea” Market Daniel Spulber
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200904Why Boycotts Succeed – and FailKingBrayden April 2009 |
Why Boycotts Succeed – and Fail200904KingBrayden Why Boycotts Succeed – and Fail
What factors determine whether a boycott will succeed in changing the behavior of its corporate target? And how can activists attack the weak points of their adversaries most effectively? |
KingBrayden200904Why Boycotts Succeed – and Fail Brayden King
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200904Walking the WalkGebhardtGary April 2009 |
Walking the Walk200904GebhardtGary Walking the Walk
When Intel’s CEO announced that “every idea and technical solution should be focused on meeting customers’ needs from the outset,” he was proposing a radical shift from an organization focused on microprocessor design to a company whose culture would prioritize understanding and meeting specific customer needs (Edwards, 2005). As more firms make the effort to become customer-focused, it is important to comprehend not only what a market orientation is, but also how such a transformation occurs. |
GebhardtGary200904Walking the Walk Gary F. Gebhardt
Gregory Carpenter John F Sherry Jr. |
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200903Reforming Credit ReformLucasDeborah March 2009 |
Reforming Credit Reform200903LucasDeborah Reforming Credit Reform
The federal budget deficit will nearly triple to a historically unprecedented $1.2 trillion for the 2009 budget year, grim Congressional Budget Office figures reported in January. Thanks to all of the bailouts in the financial industry and the assumption of Fannie Mae and Freddie Mac, the deficit for the first four months of fiscal 2009 exceeded all of 2008. |
LucasDeborah200903Reforming Credit Reform Deborah Lucas
Marvin Phaup |
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200903Uncertainty PrinciplesEarleRobert March 2009 |
Uncertainty Principles200903EarleRobert Uncertainty Principles
History has not been kind to price controls. During the French Revolution, caps on food prices that were lower than the cost of production encouraged merchants to keep their wares for themselves or sell them on the black market. |
EarleRobert200903Uncertainty Principles Robert Earle
Karl Schmedders Tymon Tatur |
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200903Culture and CommitmentAgrawalNidhi March 2009 |
Culture and Commitment200903AgrawalNidhi Culture and Commitment
Imagine two advertisements for a personal digital assistant (PDA) brand. The first highlights “self-focused” or individualist product benefits, such as enhanced productivity and organization. The second focuses instead on “collectivist” or group benefits, such as connecting with friends and family. |
AgrawalNidhi200903Culture and Commitment Nidhi Agrawal
Durairaj Maheswaran |
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200902Blame It on the Genes!KuhnenCamelia February 2009 |
Blame It on the Genes!200902KuhnenCamelia Blame It on the Genes!
Financial institutions teeter on the brink of ruin. Banks are devouring bailout money but have yet to loosen credit enough to ease a recession that is sweeping the globe. A question on many lips is, “How in the world did so many financial titans take such huge risks with our nation’s well being?” A new study by Camelia Kuhnen (Finance) and Joan Chiao (Psychology, Northwestern University) takes provocative steps toward answering that extraordinarily complex question. Appearing in the journal PLoS ONE, the study is the first to link financial investment risk-taking to variations in certain genes that regulate chemicals in the brain. |
KuhnenCamelia200902Blame It on the Genes! Camelia Kuhnen
Joan Chiao |
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200902To Sell but not to MissellInderstRoman February 2009 |
To Sell but not to Missell200902InderstRoman To Sell but not to Missell
Imagine you are at a major electronics chain store, finally ready to purchase that plasma television that would be just perfect for your recreation room. But when you tell the salesperson which model you want to take home, she asks you a few questions about your television room and viewing habits. |
InderstRoman200902To Sell but not to Missell Roman Inderst
Marco Ottaviani |
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200902Predicting PoliticsMajumderaSaikat February 2009 |
Predicting Politics200902MajumderaSaikat Predicting Politics
Political prediction markets—in which participants buy and sell “contracts” based on who they think will win an election—accurately predicted Barack Obama’s 2008 victory. New research by Daniel Diermeier (Managerial Economics and Decision Sciences) and colleagues shows that these markets behave similar to financial markets, except when traders’ partisan feelings get in the way. |
MajumderaSaikat200902Predicting Politics Saikat Ray Majumdera
Daniel Diermeier Thomas A Rietz Luís A. Nunes Amaral |
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200902A (Sales)Taxing PropositionAndersonEric February 2009 |
A (Sales)Taxing Proposition200902AndersonEric A (Sales)Taxing Proposition
It has long been said that no things in life are more certain than death and taxes. If anything could challenge these certainties, it might be the Internet – regarding taxes at least. While its technical capabilities and reach expand rapidly, the Internet leaves in its wake many complex, unresolved legal and economic issues. |
AndersonEric200902A (Sales)Taxing Proposition Eric T Anderson
Nathan M Fong Duncan I Simester Catherine E Tucker |
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200902Measuring TrustSapienzaPaola February 2009 |
Measuring Trust200902SapienzaPaola Measuring Trust
Consumer spending, home prices, 401(k) values, and employment levels are but a few of the economic vital signs that have plummeted during the upheaval of the past months. While these indicators help to describe today’s crisis, new research by Paola Sapienza (Kellogg) and Luigi Zingales (Booth) suggests that true insight into the root causes of a nation’s financial strength or weakness lies in a different measure: trust. |
SapienzaPaola200902Measuring Trust Paola Sapienza
Luigi Zingales |
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200901When Does One Good Deed Deserve Another?PillutlaMadan January 2009 |
When Does One Good Deed Deserve Another?200901PillutlaMadan When Does One Good Deed Deserve Another?
Rationality suggests that trust should build slowly and that people should proceed cautiously when building a relationship. But what if you only have one chance to decide whether to trust someone? |
PillutlaMadan200901When Does One Good Deed Deserve Another? Madan M. Pillutla
Deepak Malhotra J. Keith Murnighan |
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200901Learning from Zillow and ZootsChopraSunil January 2009 |
Learning from Zillow and Zoots200901ChopraSunil Learning from Zillow and Zoots
Have you ever Zillowed your house? Zillow is a Web-based service offering residential property valuations. With a simple street address, Zillow will tell you the property’s estimated value, square footage, and lot size, as well the value of neighboring properties and recent comparable transactions. |
ChopraSunil200901Learning from Zillow and Zoots Sunil Chopra
Martin Lariviere |
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200901Golf LessonsBrownJennifer January 2009 |
Golf Lessons200901BrownJennifer Golf Lessons
When confronted by a Tiger Woods or a Michael Phelps, do challengers step up their game or throw in the towel? Managers often use internal competition to motivate employees, but new research suggests that adding a superstar to the mix might actually hurt productivity rather than help it. |
BrownJennifer 200901Golf Lessons Jennifer Brown
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200812Discounted Diapers and Stockpiles of SoupChapmanCraig December 2008 |
Discounted Diapers and Stockpiles of Soup200812ChapmanCraig Discounted Diapers and Stockpiles of Soup
What did Enron, WorldCom, and Tyco all have in common? Accounting abuses on a grand scale and massive financial deception from the very highest levels of management. As investors lost billions of dollars, the earnings management game with its fuzzy math and earnings magic came under fire, and stronger, sweeping legislation was enacted to reform American business practices. |
ChapmanCraig200812Discounted Diapers and Stockpiles of Soup Craig J. Chapman
Thomas J. Steenburgh |
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200812Don’t Interrupt Me NowWangJing December 2008 |
Don’t Interrupt Me Now200812WangJing Don’t Interrupt Me Now
Imagine that you are highly absorbed in reading a magazine story and you find a print advertisement between the pages: will the experience of being absorbed in the reading influence how much you like the advertised product? |
WangJing200812Don’t Interrupt Me Now Jing Wang
Bobby J. Calder |
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200812Don't Look NowAbelAndrew December 2008 |
Don't Look Now200812AbelAndrew Don't Look Now
Many investors at least occasionally worry that they are not spending enough time monitoring their investments and trading to optimize the returns on their portfolio. But according to finance professor Janice Eberly of the Kellogg School of Management, investors could actually be worse off if they pay too much attention to their portfolios. Her research suggests that the costs of monitoring may at times outweigh the benefits. |
AbelAndrew200812Don't Look Now Andrew B. Abel
Janice C. Eberly Stavros Panageas |
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200812Seeing Profit Despite Misunderstood Pricing StrategyAl-NajjarNabil December 2008 |
Seeing Profit Despite Misunderstood Pricing Strategy200812Al-NajjarNabil Seeing Profit Despite Misunderstood Pricing Strategy
Can a company improve its bottom line by pricing its products incorrectly? The answer is yes, in certain cases, according to recent research conducted by Kellogg professors Nabil Al-Najjar, Sandeep Baliga, and David Besanko. |
Al-NajjarNabil200812Seeing Profit Despite Misunderstood Pricing Strategy Nabil Al-Najjar
Sandeep Baliga David A. Besanko |
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200811Transparent BarriersRosetteAshleigh November 2008 |
Transparent Barriers200811RosetteAshleigh Transparent Barriers
In the last days of 2001 a Midwestern university hired an African American coach for its college football team. He was the first African American coach hired for any sport in the university. This decision led to numerous talks and rumors on campus and in the press about the race of the coach and how it may affect the team’s reputation. |
RosetteAshleigh200811Transparent Barriers Ashleigh Shelby Rosette
Geoffrey J. Leonardelli Katherine W. Phillips |
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200811Does Function Follow Organizational Form?BergerAllen November 2008 |
Does Function Follow Organizational Form?200811BergerAllen Does Function Follow Organizational Form?
“Form ever follows function. This is the law.”
This hallowed tenet of modern design was first put forth in the late nineteenth century by Louis Sullivan, Chicago architect and father of the skyscraper. |
BergerAllen200811Does Function Follow Organizational Form? Allen N. Berger
Nathan H. Miller Mitchell Petersen Raghuram G. Rajan Jeremy C. Stein |
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200811Jack of All Trades or Master of One?ChernevAlexander November 2008 |
Jack of All Trades or Master of One?200811ChernevAlexander Jack of All Trades or Master of One?
Does an iPod play music better than an iPhone? Does a standalone printer make higher quality printouts than an all-in-one printer/fax/copy machine? Does a laundry detergent promising great cleaning power remove stains better than a laundry detergent that promises both great cleaning power and enhanced protection against fading? |
ChernevAlexander200811Jack of All Trades or Master of One? Alexander Chernev
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200810Science as Team SportJonesBenjamin October 2008 |
Science as Team Sport200810JonesBenjamin Science as Team Sport
The Large Hadron Collider, accelerating subatomic particles to light speed before crashing them together in spectacular fashion 100 meters beneath the Franco-Swiss border, unites thousands of physicists and engineers from dozens of nations and hundreds of universities in one of the world’s largest scientific collaborations. But calculus, a cornerstone of mathematics that is wielded en masse in the collider’s humming tunnels and glowing control rooms, was developed by just two men, Gottfried Wilhelm Leibniz and Sir Isaac Newton, each of whom worked independently in the latter half of the 17th century. |
JonesBenjamin200810Science as Team Sport Benjamin F. Jones
Stefan Wuchty Brian Uzzi |
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200810Seeing Is Believing, Unless It Isn’tWhitsonJennifer October 2008 |
Seeing Is Believing, Unless It Isn’t200810WhitsonJennifer Seeing Is Believing, Unless It Isn’t
Adam Galinsky (Management and Organizations) and former Kellogg doctoral student Jennifer Whitson (University of Texas, Austin) report in the journal Science how even the most normal among us strive, intensely but unconsciously, to find and impose order in our unruly world. This quest for structure can sometimes be so all consuming that we trick ourselves into seeing and believing things that simply do not exist. |
WhitsonJennifer200810Seeing Is Believing, Unless It Isn’t Jennifer A. Whitson
Adam D. Galinsky |
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200810Brand Scandal SpilloverRoehmMichelle October 2008 |
Brand Scandal Spillover200810RoehmMichelle Brand Scandal Spillover
Many of us remember the 1993 Jack-in-the-Box scandal involving tainted hamburger meat: An outbreak of E. coli food poisoning left more than 700 people ill and four dead (New York Times, 1993). In the wake of the scandal, sales at Jack-in-the-Box plummeted. Although this outcome is not surprising, it is less obvious how the scandal affected competitors such as McDonald's and Burger King. |
RoehmMichelle200810Brand Scandal Spillover Michelle L. Roehm
Alice M. Tybout |
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200810When Does Coordination Require Centralization?AlonsoRicardo October 2008 |
When Does Coordination Require Centralization?200810AlonsoRicardo When Does Coordination Require Centralization?
The question of how large, multidivisional entities should organize has a long pedigree. Often relevant to governments, armies, corporations, and nongovernmental organizations, the topic has been debated for centuries; Plato's Republic, Sun Tzu's Art of War, and Aesop’s fables all addressed various forms of this problem. |
AlonsoRicardo200810When Does Coordination Require Centralization? Ricardo Alonso
Wouter Dessein Niko Matouschek |
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200810Stacking the Deck Against RacismLivingstonRobert October 2008 |
Stacking the Deck Against Racism200810LivingstonRobert Stacking the Deck Against Racism
America prefers to envision itself as a land of equality, where people coexist in a melting pot or a rainbow of colors and cultures. As a society, we value freedom and fairness for all, and we work to fight prejudice and discrimination in our government, our neighborhoods, and wherever else it may hide. |
LivingstonRobert200810Stacking the Deck Against Racism Robert W. Livingston
Brian B. Drwecki |
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200809The VIX, CIV, and MFIVAndersenTorben September 2008 |
The VIX, CIV, and MFIV200809AndersenTorben The VIX, CIV, and MFIV
Beyond growth and leverage, a key factor in the value of a given stock, and the broader market, is volatility, or the magnitude of variation in prices over time. Especially in today’s uncertainty-ridden market including a major credit crisis and declining dollar, investors pay sizeable premiums to be hedged against increases in volatility, which typically represent bad market conditions. |
AndersenTorben200809The VIX, CIV, and MFIV Torben Andersen
Oleg Bondarenko |
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200809Communicating the Risks of Investments in Intellectual PropertyMageeRobert September 2008 |
Communicating the Risks of Investments in Intellectual Property200809MageeRobert Communicating the Risks of Investments in Intellectual Property
Investors examining financial statements in the United States may encounter two primary sets of financial reporting standards. Generally Accepted Accounting Principles (GAAP) are generally used by companies based in the United States. However, firms in much of the rest of the world use International Financial Reporting Standards (IFRS). Recently, the U.S. Securities and Exchange Commission decided that foreign companies can provide U.S. investors with financial statements prepared according to IFRS without having to reconcile them to GAAP. According to research by Kellogg School of Management accounting professor Robert Magee, not only are the statements prepared using the international standards better at communicating certain information to potential investors, the use of these standards promotes better corporate decision-making about how to invest in research and development. |
MageeRobert200809Communicating the Risks of Investments in Intellectual Property Robert Magee
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200809Strategic Activism and Nonmarket StrategyBaron David September 2008 |
Strategic Activism and Nonmarket Strategy200809Baron David Strategic Activism and Nonmarket Strategy
In 1987 Rainforest Action Network (RAN) initiated a nationwide boycott against Burger King. At the core of their demands was the accusation that the contracts with Central American countries for exports of cheap hamburger beef resulted in “rainforests being denuded to provide pasture for cattle” (RAN 2007). The result: a 12 percent drop in Burger King’s sales and the cancellation of $35 million worth of contracts with the tropical countries. This example reflects a trend: activist organizations ceasing to direct their demands to governments and, according to David Baron and Daniel Diermeier, “increasingly turning to private politics to advance their agenda.” |
Baron David200809Strategic Activism and Nonmarket Strategy David P. Baron
Daniel Diermeier |
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200809Firm Size and Service LevelAllonGad September 2008 |
Firm Size and Service Level200809AllonGad Firm Size and Service Level
Both Ameritrade and E-Trade, small online brokerage firms, tout their guaranteed transaction times as part of their service to customers. However, capable large-scale competitors such as Merrill Lynch Direct make no such guarantee. Why do some firms choose to promote a customer service guarantee as one of their benefits while others are content to conform to the customer service standard set by their industry? |
AllonGad200809Firm Size and Service Level Gad Allon
Itay Gurvich |
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200808Own-Brand and Cross-Brand Retail Pass-ThroughBesankoDavid August 2008 |
Own-Brand and Cross-Brand Retail Pass-Through200808BesankoDavid Own-Brand and Cross-Brand Retail Pass-Through
Trade promotions drive the marketing strategies of packaged goods manufacturers. Roughly 60 percent of the marketing budget of major packaged goods manufacturers goes to offering wholesale discounts to retail partners. Not surprisingly then, manufacturers are concerned with how much of their promotional pricing gets passed through to the end-users of their products. Discrepancies between manufacturer and retailer estimates of pass-through often occur. Retailers claim to pass-through $7.5 billion more in trade promotions than manufacturers believe they do. Recent research published in Marketing Science explores this gap and offers insights into retailer behavior with regard to these promotions. |
BesankoDavid200808Own-Brand and Cross-Brand Retail Pass-Through David A. Besanko
Jean-Pierre Dubé Sachin Gupta |
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200808The Impact of the 2008 Tax Rebates on Consumer SpendingBrodaChristian August 2008 |
The Impact of the 2008 Tax Rebates on Consumer Spending200808BrodaChristian The Impact of the 2008 Tax Rebates on Consumer Spending
Between May and July of this year, the U.S. Federal Government has distributed more than 90 billion dollars worth of economic stimulus payments, or tax rebates, to American households. Despite much recent concern that households would save the money, we find that households are doing a significant amount of extra spending because of the stimulus payments. The typical family increased their spending on food, mass-merchandise and drug products by 3.5 percent when their rebate arrived, relative to a family yet to receive its rebate. Based on these estimates and on results from previous analysis, we forecast that demand for overall non durable consumption in the second quarter of 2008 has been boosted by 2.4 percent as a direct result of the stimulus payments, and will be held up by around 4.1 percent in the third quarter of 2008.
We also study who spent their rebates and on what. We find that low income and low asset households increased their spending at nearly double the rate of the average household. We also find that shoppers are spending a higher share of their rebate in supercenters –like Walmart and Target– relative to their usual behavior. Most people report that they are not spending much of their rebates to increase or maintain their purchases of apparel or groceries, but are instead spending more of their rebates on durable goods and personal services. Finally, the rebates are having different effects in different parts of the country, with people in the Greater Los Angeles and South East regions spending more than people in major metropolitan areas in the rest of the country.
Our findings underscore the potency of the economic stimulus payments in stabilizing consumer spending during recessions. |
BrodaChristian200808The Impact of the 2008 Tax Rebates on Consumer Spending Christian Broda
Jonathan A. Parker |
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200808Does Malpractice Liability Keep the Doctor Away?MatsaDavid August 2008 |
Does Malpractice Liability Keep the Doctor Away?200808MatsaDavid Does Malpractice Liability Keep the Doctor Away?
It seems self-evident: states that pass laws protecting doctors from large malpractice awards will attract more doctors than states without malpractice liability limitations. Accordingly, the U.S. Department of Health and Human Services favors limiting the monetary damages available to patients affected by medical malpractice, arguing that the supply of doctors will shrink in states without damage caps and increase in states that enact damage caps. Furthermore, President George W. Bush has proposed a nationwide cap on noneconomic damages available in malpractice lawsuits. |
MatsaDavid200808Does Malpractice Liability Keep the Doctor Away? David A. Matsa
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200808The Outlet MallCoughlanAnne August 2008 |
The Outlet Mall200808CoughlanAnne The Outlet Mall
They average over 200,000 square feet, with some up to five times that large. We drive past them all the time, their bright lights beckoning from just off our highways. And even though about 40 percent of Americans visit at least one of them in a given year—sometimes on increasingly popular "bus tours" that leave from city centers—they are hardly unique to the United States, with a growing presence in Europe, Japan, and even the Middle East, where the Dubai Outlet Mall (at 1 million square feet) opened in August of 2007, housing Tommy Hilfiger, Guess, and Esprit stores among many others. |
CoughlanAnne200808The Outlet Mall Anne T. Coughlan
David A. Soberman |
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200807Emotion and Consumer BehaviorRuckerDerek July 2008 |
Emotion and Consumer Behavior200807RuckerDerek Emotion and Consumer Behavior
When imagining a vacation, which resort do individuals prefer: a quiet retreat to relax at or an active destination to explore? Derek Rucker (Kellogg School of Management, marketing department) and Richard Petty (Ohio State University, psychology department) examined the influence of specific emotions on consumer choices and the implications of those influences for persuasion. |
RuckerDerek200807Emotion and Consumer Behavior Derek D. Rucker
Richard E. Petty |
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200807Professional ForecastersOttavianiMarco July 2008 |
Professional Forecasters200807OttavianiMarco Professional Forecasters
Imagine you are the chief operating officer for a Fortune 500 technology company and you have to sign off on a major pricing increase for your firm's best-selling product line in two days. All the internal data you have—labor costs, product sales/growth trends, competitors' and vendors' anticipated pricing—support the price increase. But you are still hesitant. |
OttavianiMarco200807Professional Forecasters Marco Ottaviani
Peter Norman Sørensen |
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200807The Price of AdviceEsőPéter July 2008 |
The Price of Advice200807EsőPéter The Price of Advice
Consulting is big business these days. Estimates put the turnover of management consulting firms in the United States alone at more than $120 billion. And, closer to home, roughly a third of every graduating MBA class at Kellogg joins a consulting firm for a median salary well into six figures. Since "consulting" can mean anything from providing information or advice professionally to firms and individual clients; working in fields such as information technology (IT), marketing, or human resources; or being a real estate agent, financial adviser, or lawyer, it is clear that consultants form a sizeable portion of the economy. |
EsőPéter 200807The Price of Advice Péter Eső
Balázs Szentes |
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200807Cultural Intelligence in Global TeamsJanssensMaddy July 2008 |
Cultural Intelligence in Global Teams200807JanssensMaddy Cultural Intelligence in Global Teams
Modern organizations operate in a thoroughly global environment. Not only do they buy and sell goods and services in several national markets, but they also hire individuals from a variety of cultures. As a result, culturally heterogeneous teams frequently determine strategy, undertake planning, carry out research, and perform other complex tasks for organizations. |
JanssensMaddy200807Cultural Intelligence in Global Teams Maddy Janssens
Jeanne M. Brett |
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200806Women and Math, the Gender Gap BridgedGuisoLuigi June 2008 |
Women and Math, the Gender Gap Bridged200806GuisoLuigi Women and Math, the Gender Gap Bridged
Nine years before the 19th Amendment granted American women the right to vote, a committee of Swedish scientists in 1911 awarded a second Nobel Prize to Marie Curie, a French Pole, in recognition of her discovery of the elements radium and polonium. Nine years before Title IX cracked down on gender discrimination in American education, Soviet cosmonaut Valentina Tereshkova became the first woman to rocket into space, piloting Vostok 6 in 1963. Across generations and cultures, women have reached remarkable levels of scientific and social achievement. Yet five years into the 21st century, the leader of one of the world's most elite universities, in one of the oldest democracies, opined upon "the unfortunate truth" that women probably are not as mentally equipped for work in math and science as men (Summers 2005). |
GuisoLuigi200806Women and Math, the Gender Gap Bridged Luigi Guiso
Ferdinando Monte Paola Sapienza Luigi Zingales |
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200806Meeting Strangers and Friends of FriendsJacksonMatthew June 2008 |
Meeting Strangers and Friends of Friends200806JacksonMatthew Meeting Strangers and Friends of Friends
To many people, the years spent tangled in the twisted realm of high school romance may have seemed like hard time served in prison. New work by Brian Rogers (Professor of Managerial Economics and Decision Sciences at the Kellogg School of Management) and Matthew Jackson (Professor of Economics at Stanford University) shows that patterns of social relationships found in these and other seemingly distinctive worlds are in fact surprisingly similar. |
JacksonMatthew200806Meeting Strangers and Friends of Friends Matthew O. Jackson
Brian W. Rogers |
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200806Patent Protection and Innovation in PharmaQianYi June 2008 |
Patent Protection and Innovation in Pharma200806QianYi Patent Protection and Innovation in Pharma
Viagra doesn't grow on trees. Neither does Advil, Lipitor, or any of the myriad other drugs that make their way to market. Those biochemical breakthroughs are rooted in human innovations, not magic. Like most other human endeavors, innovation is thought to be encouraged by some pushing and prodding. |
QianYi200806Patent Protection and Innovation in Pharma Yi Qian
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200806Bear or Bull Market Indicators?DesaiHemang June 2008 |
Bear or Bull Market Indicators?200806DesaiHemang Bear or Bull Market Indicators?
Joseph Kennedy, the father of President John F. Kennedy and Massachusetts Senator Edward Kennedy, made his fortune by short selling. He sold securities that he had borrowed with the expectation that he would be able to buy them back for a lower price when he had to return them to the lender. The price difference became Kennedy’s profit on the transactions. |
DesaiHemang200806Bear or Bull Market Indicators? Hemang Desai
K. Ramesh S. Ramu Thiagarajan Bala V. Balachandran |
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200805When Executives SellCadmanBrian May 2008 |
When Executives Sell200805CadmanBrian When Executives Sell
It's no secret that executives often sell substantial amounts of their equity holdings in their firm. This begs the question of how firms re-contract with executives after they sell these shares. Do firms simply replace the divested incentives? How does the change in executive wealth composition influence contract design? According to research by Kellogg School of Management Professor Brian Cadman, firms do not fully replenish shares divested from the firm. In addition, he finds that following executive equity sales that diversify executive wealth, firms increase the proportion of equity in annual compensation and target greater equity incentives. |
CadmanBrian200805When Executives Sell Brian D. Cadman
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200805The Promise, Perils, and Performance of Private EquityLernerJosh May 2008 |
The Promise, Perils, and Performance of Private Equity200805LernerJosh The Promise, Perils, and Performance of Private Equity
Private equity—the class of investments that includes venture capital investments and buyouts—accounts for a relatively small and, to date, little analyzed percentage of overall investments. Studies have shown that institutional investors—such as university endowment funds, corporate and public pension funds, private advisors, banks, and insurance companies—generally outperform individual investors. However, researchers have unearthed virtually no information on the success rates of different types of institutional investors. |
LernerJosh200805The Promise, Perils, and Performance of Private Equity Josh Lerner
Antoinette Schoar Wan Wongsunwai |
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200805How Many Reasons Do You Need to Like BMWs?TyboutAlice May 2008 |
How Many Reasons Do You Need to Like BMWs?200805TyboutAlice How Many Reasons Do You Need to Like BMWs?
If you were asked to come up with one reason to drive a BMW, what would it be? What if you were asked for ten reasons? Now imagine your opinion of the BMW after searching your mind for reasons to drive it; would your evaluation be more favorable after coming up with one reason or ten? |
TyboutAlice200805How Many Reasons Do You Need to Like BMWs? Alice M. Tybout
Brian Sternthal Georgios A. Bakamitsos Prashant Malaviya Se-Bum Park |
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200805Lobbyists Speak in NumbersHochbergYael May 2008 |
Lobbyists Speak in Numbers200805HochbergYael Lobbyists Speak in Numbers
Although the Sarbanes-Oxley Act has come to be known as SOX, it has nothing to do with baseball teams or fancy foot coverings. Like sports teams, however, the law spurs heated debates because it addresses a hot-button topic: corporate accountability. Since SOX was passed in 2002, people have argued whether or not it will indeed improve operations, decrease corporate mismanagement, and thus benefit shareholders. Some insist it will prove detrimental because of high compliance costs and be ineffective in preventing corporate misconduct, and that it will drive companies to list on foreign exchanges. |
HochbergYael200805Lobbyists Speak in Numbers Yael Hochberg
Paola Sapienza Annette Vissing-Jørgensen |
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200804Cost-Sharing AgreementsDyeRonald April 2008 |
Cost-Sharing Agreements200804DyeRonald Cost-Sharing Agreements
Most managers who work in international businesses are aware that transfer prices — that is, the prices one division of their business pays or receives for products and/or services supplied to or acquired from its other divisions — can have a large effect on their total tax bill and their overall corporate-wide profitability. These tax consequences arise because of the differences in tax rates across the jurisdictions in which the various divisions of the company do business. Most managers also know that choosing transfer prices in a way that both minimizes a firm's tax liability and receives the approval of tax authorities is among the most important tax issues that their firms face. While transfer pricing regulations (e.g., §1.482 of the U.S. Treasury regulations) try to restrict firms' choices by requiring that the prices charged for the transfers of internal products or services occur at "arm's length" or market prices, firms often have discretion in selecting transfer prices because these internally transferred products or services have no identical external, or market, counterparts. |
DyeRonald200804Cost-Sharing Agreements Ronald A. Dye
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200804Concrete ThreatsSalvoAlberto April 2008 |
Concrete Threats200804SalvoAlberto Concrete Threats
During the summer of 2007, a couple of months after finishing a draft of a paper on the Brazilian cement industry, Alberto Salvo, Assistant Professor of Management and Strategy, received a phone call from Elizabeth Farina, President of Brazil's Administrative Council for Economic Defense, an antitrust authority that is part of the Ministry of Justice. |
SalvoAlberto200804Concrete Threats Alberto Salvo
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200804Ingratiating Behavior Provides Alternative Path to the BoardroomWestphalJames April 2008 |
Ingratiating Behavior Provides Alternative Path to the Boardroom200804WestphalJames Ingratiating Behavior Provides Alternative Path to the Boardroom
Corporate managers who express opinions that differ from those of their CEO may spoil their chances of being appointed to outside boards, according to recently published research. Ithai Stern (Assistant Professor of Management & Organizations at the Kellogg School of Management) and Kellogg graduate James Westphal (Professor of Business Administration and Strategy at the University of Michigan) have found that managers who engage in ingratiating behavior when interacting with their CEO are most likely to be recommended for seats on outside boards on which the CEO serves. |
WestphalJames200804Ingratiating Behavior Provides Alternative Path to the Boardroom James D. Westphal
Ithai Stern |
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200804A Borderline QuestionBesankoDavid April 2008 |
A Borderline Question200804BesankoDavid A Borderline Question
Snaking 1,900 miles from Tijuana to Matamoros, San Diego to Brownsville, the border between Mexico and the United States might seem large. But its physical size is dwarfed by the passions that it evokes among hundreds of millions of people spread to its north and south. As anxiously scrutinized as they are heavily traversed, those miles of desert, rivers, and fences symbolize to some a gateway to everything that is great about America, while to others they are a gaping leak on a sinking ship. Even the most casual observer of America's front-page headlines or late-night TV monologues knows of big city rallies, millions of immigrants strong, and of the volunteer army of Minutemen, rifle-toting citizens intent on locking down the border. That border and its issues recently brought Congress to a standstill, and may help decide the next American President. |
BesankoDavid200804A Borderline Question David A. Besanko
Brad Wible |
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200803Averting a RecessionJohnsonDavid March 2008 |
Averting a Recession200803JohnsonDavid Averting a Recession
In the words of Aldous Huxley, “Experience teaches only the teachable.” As United States policymakers attempt to halt the economy’s careening express train to recession, the $168 billion question is: Will the fiscal stimulus plan enacted last month really work? Income tax rebates and business tax breaks trigger déjà vu, with the response to today’s flagging economy bearing striking resemblance to action taken in the dog days of 2001. But this time around, lawmakers are armed with more than just blind faith that putting money in the hands of millions of Americans could make a difference. |
JohnsonDavid200803Averting a Recession David S. Johnson
Jonathan A. Parker Nicholas S. Souleles |
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200803Coupling within the FirmOcasioWilliam March 2008 |
Coupling within the Firm200803OcasioWilliam Coupling within the Firm
For today’s multi-business firms—from IBM to General Electric to Kraft—developing strategies and deploying human and financial resources is extremely complex given their highly-diversified operations and globally far-flung offices. How, then, do executives in such corporations optimize these activities? According to William Ocasio, Professor of Management and Organizations at the Kellogg School, and John Joseph, lecturer and doctoral candidate in the same department, the answer lies largely in the degree of governance channel "coupling" in a given firm. |
OcasioWilliam200803Coupling within the Firm William Ocasio
John Joseph |
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200803Exercising OptionsMcDonaldRobert March 2008 |
Exercising Options200803McDonaldRobert Exercising Options
Though the glamour surrounding stock options and other share-based compensation dissipated with the bursting of the tech bubble at this millennium’s outset, these employee incentives are still in place for many executives. Few of these executives, however, understand the special tax treatments associated with stock option and restricted stock grants. |
McDonaldRobert200803Exercising Options Robert McDonald
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200803Running Neck and NeckHörnerJohannes March 2008 |
Running Neck and Neck200803HörnerJohannes Running Neck and Neck
Phenom. Quad-core. FASN8. These may sound like a new car model, the type of engine under its hood, and a vanity license plate for it respectively, but in reality they are all microprocessors recently introduced by major chipmakers. More generally, they are moves in one of the most competitive current product races in the technology industry: the ongoing battle to develop the fastest processor. |
HörnerJohannes200803Running Neck and Neck Johannes Hörner
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200802Playing Well TogetherGaricanoLuis February 2008 |
Playing Well Together200802GaricanoLuis Playing Well Together
Why do some people in human capital intensive industries such as law and medicine decide to work together in firms? When do firms "extend their boundaries" by including a wider range of work and people with a broader variety of expertise? Why do some human capital intensive industries tend to generate these associations while others do not? According to research published by Thomas Hubbard (Kellogg School of Management), the answers to these questions are shaped in part by the value of sharing information about economic opportunities. |
GaricanoLuis200802Playing Well Together Luis Garicano
Thomas N. Hubbard |
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200802Predicting Customer Lifetime ValueMalthouseEdward February 2008 |
Predicting Customer Lifetime Value200802MalthouseEdward Predicting Customer Lifetime Value
"Prediction is very difficult, especially about the future." While Nobel Laureate physicist Niels Bohr probably had subatomic, quantum mechanical phenomena in mind when he made that statement, the same could be said for customer behaviors. Or so thought Robert Blattberg, Professor of Marketing at the Kellogg School of Management, and Edward Malthouse, Associate Professor of Integrated Marketing Communications at Northwestern's Medill School of Journalism, in their Journal of Interactive Marketing paper describing the surprising uncertainty inherent in differentially marketing to customers based upon their past performance. |
MalthouseEdward200802Predicting Customer Lifetime Value Edward Malthouse
Robert C. Blattberg |
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200802When Should a Firm Decentralize?HarrisMilton February 2008 |
When Should a Firm Decentralize?200802HarrisMilton When Should a Firm Decentralize?
Ask a nanoscientist how an amazing new molecule was built and you're liable to hear, "It assembled itself." Observations of such self-organizing systems are increasingly common in the natural sciences, as complex structures and astounding properties emerge without any influence from external sources. In the corporate arena, however, a boardroom decision to let a company "assemble itself" would probably lead to panic on the trading floor. When it comes to corporate structuring, it is far more normal for the players to engage in some intelligent design, to co-opt the phrase. In this vein, Kellogg School of Management Professor Artur Raviv (Finance) and longtime collaborator Milton Harris (formerly of Kellogg, now at the University of Chicago) write in Management Science about how various features of corporations can determine the structures by which the company should be organized. |
HarrisMilton200802When Should a Firm Decentralize? Milton Harris
Artur Raviv |
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200801(When and How) Do Markets Learn?ZajacEdward January 2008 |
(When and How) Do Markets Learn?200801ZajacEdward (When and How) Do Markets Learn?
Can ideology influence stock price? Research conducted by Edward Zajac (Kellogg School of Management) and James Westphal (University of Michigan) suggests that sociological influences, such as dominant ideologies regarding what constitutes good corporate practices, can determine how investors view corporate policies — and thus how the market reacts to such policies. Specifically, Zajac and Westphal's study shows that investor reaction to announcements of stock repurchase plans shifted from negative to positive during the mid-1980s, coinciding with a shift in what they describe as institutional logics, or shared beliefs. In fact, they show how strong shared beliefs can become by providing additional evidence that the generally positive reaction to stock buyback announcements persisted despite growing evidence that a substantial number of firms did not implement the repurchase plans. In light of these findings, Zajac and Westphal suggest that the traditional "market learning" view of investor decision-making should be expanded to include an analysis of these and other sociological influences.
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ZajacEdward200801(When and How) Do Markets Learn? Edward J. Zajac
James D. Westphal |
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200801Big Fish, Little Fish—Choose Your PondHarstadBård January 2008 |
Big Fish, Little Fish—Choose Your Pond200801HarstadBård Big Fish, Little Fish—Choose Your Pond
"Stockholder and public disapproval of executive pay levels is growing and could lead to government intervention unless directors and managers confront the executive pay issue squarely and come to grips with it," wrote David Kraus in a 1980 Harvard Business Review article. At that time, an average chief executive officer (CEO) earned 42 times more than an average worker, and the ratio had been fairly stable for decades. |
HarstadBård200801Big Fish, Little Fish—Choose Your Pond Bård Harstad
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200801Games Hospitals PlayDafnyLeemore January 2008 |
Games Hospitals Play200801DafnyLeemore Games Hospitals Play
Hospitals facing the entry of competitors that threaten to eat into their revenues act strategically to dissuade the potential competitors from entering the market. Hospitals, insurance companies, and doctors are economic agents reacting to economic conditions. |
DafnyLeemore200801Games Hospitals Play Leemore S. Dafny
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200712Letting Go of Voting Rights May Be a Good Investment StrategyFrancisJennifer December 2007 |
Letting Go of Voting Rights May Be a Good Investment Strategy200712FrancisJennifer Letting Go of Voting Rights May Be a Good Investment Strategy
Dividends paid by a dual class stock are at least as informative for dual-class firms as for single-class firms, if not more so.
Earnings, in contrast, are less informative for dual-class firms than for single-class firms. Reduced management accountability, which both accompanies and stems from the separation of cash flow rights from voting rights in dual-class firms, is responsible for the reduced usefulness of earnings information.
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FrancisJennifer200712Letting Go of Voting Rights May Be a Good Investment Strategy Jennifer Francis
Katherine Schipper Linda Vincent |
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200712Healthy ChoicesLeeAngela December 2007 |
Healthy Choices200712LeeAngela Healthy Choices
Which tactic would motivate you to obey instructions for taking a prescribed medicine: fear of harmful health consequences of not taking the drug or confidence in the eventual health benefits bestowed by the drug? |
LeeAngela200712Healthy Choices Angela Y. Lee
Jennifer L. Aaker |
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200712Are Reservations Recommended?AlexandrovAlexei December 2007 |
Are Reservations Recommended?200712AlexandrovAlexei Are Reservations Recommended?
To understand restaurant reservations, we need an explanation that does not depend upon varying prices to customers. Alexandrov and Lariviere identify a variety of situations that effect whether it is in the best interests of a restaurant to offer or not offer reservations. Their research provides evidence that providing reservations can increase demand. Considering the additional operational advantages of allowing reservations, it is not surprising that restaurants and other service-based businesses offer reservations without getting paid for them. |
AlexandrovAlexei200712Are Reservations Recommended? Alexei Alexandrov
Martin Lariviere |
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200711Treasury Debt and Corporate Bond RatesKrishnamurthyArvind November 2007 |
Treasury Debt and Corporate Bond Rates200711KrishnamurthyArvind Treasury Debt and Corporate Bond Rates
The authors relate the yield spread between AAA-rated corporate bonds and Treasury securities to the U.S. government debt-to-GDP ratio—that is, the ratio of the face value of publicly held U.S. government debt to U.S. gross domestic product (GDP). They find that the corporate bond spread is high when the stock of government debt is low while the spread is low when the stock of debt is high.
The demand for “convenience” provided by Treasury debt depends on this yield spread, and they provide estimates of the elasticity of demand.
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KrishnamurthyArvind200711Treasury Debt and Corporate Bond Rates Arvind Krishnamurthy
Annette Vissing-Jørgensen |
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200711Discriminating Prices for the Discriminating ConsumerKhanRomana November 2007 |
Discriminating Prices for the Discriminating Consumer200711KhanRomana Discriminating Prices for the Discriminating Consumer
Retailers typically engage in some form of price discrimination to increase profitability. Romana Khan and Dipak Jain compared the impact on retailer profitability of two price discrimination mechanisms: quantity discounts based on package size and store-level pricing or micromarketing. The authors used store-level sales data to estimate demand, and employed the results in conjunction with a retailer pricing model to simulate the effects of various pricing strategies. They found that profits were greatest when quantity discounts based on package size were combined with micromarketing. |
KhanRomana200711Discriminating Prices for the Discriminating Consumer Romana J. Khan
Dipak Jain |
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200711Nobel DesignsVohraRakesh November 2007 |
Nobel Designs200711VohraRakesh Nobel Designs
Roger Myerson, today on faculty at the University of Chicago Department of Economics, was an integral part of the Kellogg School’s famed Managerial Economics and Decision Sciences Department from 1976-2001 as the Harold L. Stuart Professor of Decision Sciences. It was during that time that much of his Nobel-winning research was conducted as part of a renowned team of Kellogg scholars who pushed the boundaries of how applied mathematics and game theory could generate breakthroughs in management education and strategy. Mechanism design is one of those breakthroughs. This article explains mechanism design and its importance. |
VohraRakesh200711Nobel Designs Rakesh Vohra
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200711Place Your BidsKuGillian November 2007 |
Place Your Bids200711KuGillian Place Your Bids
The traditional belief is that a high first offer results in a high selling price. This belief is rooted in a psychological principle known as anchoring, such that the size of an opening bid is a testament to the item’s value. The numerical value of an anchor sets the tone of more or less prestige of the product up for auction. Furthermore, a high opening bid can spark the rose-colored glasses effect, leading bidders to focus on the more positive features of an item. The researchers show that low rather than high opening bids—for a variety of products from shirts to fancy rugs in online auctions—generate high selling prices, demonstrating a reversal of the anchoring effect. |
KuGillian200711Place Your Bids Gillian Ku
Adam D. Galinsky J. Keith Murnighan |
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200710A New Channel Strategy for DellChopraSunil October 2007 |
A New Channel Strategy for Dell200710ChopraSunil A New Channel Strategy for Dell
Dell impressed many in its early years with its distinct model of supply chain management, selling customized computers directly to customers to meet burgeoning PC demand. By using this innovative sales model, Dell became an industry and shareholders' darling, a high-tech pioneer with seemingly limitless growth. Those days appear to be over: Dell's profits and shares have dropped considerably from their peaks in recent times. |
ChopraSunil200710A New Channel Strategy for Dell Sunil Chopra
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200710Softening the Blow of Bad NewsLansfordBenjamin October 2007 |
Softening the Blow of Bad News200710LansfordBenjamin Softening the Blow of Bad News
Chief financial officers and investors focus on earnings per share more than any other single financial figure. Researchers in accounting have long confirmed that the price of a company's stock is punished when a company's earnings fall short of forecasted earnings or, in the lingo, the company has a “negative earnings surprise.” Common wisdom, confirmed by empirical evidence, suggests that negative earnings surprises are punished proportionately more than positive earnings surprises are rewarded. A recent survey (Graham et al., 2005) confirms that this is indeed the perception among CFOs and summarizes several strategies mentioned by CFOs to temper the market's reaction to bad news. Among them, the company may release news about leading indicators that signal the prospect of better future earnings. |
LansfordBenjamin200710Softening the Blow of Bad News Benjamin Lansford
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200710The Value of a Cabinet PositionAdachiTakanori October 2007 |
The Value of a Cabinet Position200710AdachiTakanori The Value of a Cabinet Position
On May 28, 2007, Japan’s Minister of Agriculture, Toshikatsu Matsuoka, hanged himself in his residence. Accused of corruption and about to face an inquiry in Parliament, Mr. Matsuoka committed suicide. Were the accusations related to the power that his position conveyed? Mr. Matsuoka was facing corruption charges brought about by undeclared political donations. |
AdachiTakanori200710The Value of a Cabinet Position Takanori Adachi
Yasutora Watanabe |
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200710Collaboration and CreativityUzziBrian October 2007 |
Collaboration and Creativity200710UzziBrian Collaboration and Creativity
“What a small world!” is a common response to discovering that a new acquaintance knows someone you do. The small world phenomenon is so common, in fact, that scholars and researchers who specialize in network analysis study what they call “small world networks” to explain the dynamics of various social systems, including friendships, corporate alliances, scientific collaborations, the Internet, and business production teams. |
UzziBrian200710Collaboration and Creativity Brian Uzzi
Jarrett Spiro |
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200709Beating the Bottlenecks in E-CommerceLinWuqin September 2007 |
Beating the Bottlenecks in E-Commerce200709LinWuqin Beating the Bottlenecks in E-Commerce
It’s the familiar demand of sales and services businesses played out over the Web: Executives want to ensure that their customers obtain maximum satisfaction while keeping the costs of doing business as low as possible. That problem looms particularly large for online organizations. The combination of growing demand for e-commerce and the increasing complexity of the Internet’s infrastructure has put intense pressure on information technology (IT) planners to harmonize the two requirements in inventive ways. An innovative research project headed by Wuqin Lin, associate professor of managerial economics and decision science at the Kellogg School, provides guidance for doing just that. |
LinWuqin200709Beating the Bottlenecks in E-Commerce Wuqin Lin
Zhen Liu Cathy H. Xia Li Zhang |
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200709Pricing a Global Measure of Liquidity RiskKorajczykRobert September 2007 |
Pricing a Global Measure of Liquidity Risk200709KorajczykRobert Pricing a Global Measure of Liquidity Risk
Most of us are not willing to bear risk without compensation. For a long time, return volatility has been almost synonymous with financial risk, but now we know that this not the only consideration. For instance, when we have an asset in our portfolio, no matter how volatile it is, we would like to be in a position to sell it at any time without incurring high penalties. We prefer assets for which we will always be able to get our money back if we suddenly need it or if the market experiences a downturn. Thus, it makes good sense to think that investors will require a relatively higher expected return if the asset they are holding is illiquid, i.e. difficult to trade. |
KorajczykRobert200709Pricing a Global Measure of Liquidity Risk Robert Korajczyk
Ronnie Sadka |
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200709Are Large CEO Severance Packages Justified?LysThomas September 2007 |
Are Large CEO Severance Packages Justified?200709LysThomas Are Large CEO Severance Packages Justified?
Research supports three motivations behind executive severance agreements: to encourage risk-taking, to provide job insurance, and to compensate CEOs in the instance of confidentiality requirements. While the question of whether or not CEO severance packages are excessive will certainly remain controversial, it is clear that the existence of substantial CEO severance packages has a theoretical foundation. |
LysThomas200709Are Large CEO Severance Packages Justified? Thomas Lys
Tjomme O. Rusticus Ewa Sletten |
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200709Welcome to Kellogg InsightJainDipak September 2007 |
Welcome to Kellogg Insight200709JainDipak Welcome to Kellogg Insight
Welcome to Kellogg Insight, the new showcase for faculty research at the Kellogg School. This resource is designed as an extension of the Kellogg intellectual experience by communicating cutting-edge concepts to business practitioners. |
JainDipak200709Welcome to Kellogg Insight Dipak Jain
Kathleen Hagerty |
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200708Trust Required HereGraysonKent August 2007 |
Trust Required Here200708GraysonKent Trust Required Here
Buying a used car is always a difficult experience, in large part because potential buyers have trouble trusting sellers. Trust is an elusive but important component in market transactions. New work by Kent Grayson, a marketing professor at the Kellogg School of Management, and his colleagues focuses on the pension industry in the United Kingdom and Taiwan, and shows that a buyer requires two types of trust: trust in the particular seller (narrow-scope trust) and trust in the broader social context (the market) in which the transaction takes place (broad-scope trust). |
GraysonKent200708Trust Required Here Kent Grayson
Devon Johnson Der-Fa Chen |
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200708Mandatory or Voluntary Corporate Disclosure?FishmanMichael August 2007 |
Mandatory or Voluntary Corporate Disclosure?200708FishmanMichael Mandatory or Voluntary Corporate Disclosure?
“Sunlight is said to be the best of disinfectants,” wrote Supreme Court Justice Louis Brandeis on the importance of openness and transparency in society. Such sunlight can be a pretty profitable business strategy, too: companies who are forthcoming with information about the quality of the products they sell are rewarded with superior profits from appreciative customers. But Kellogg faculty Michael Fishman, the Norman Strunk Distinguished Professor of Financial Institutions, and Kathleen Hagerty, Senior Associate Dean for Faculty and Research, argue that secrecy sometimes pays, too. Their work in The Journal of Law, Economics, & Organization analyzes firms’ disclosure decisions taking account of the fact that not all consumers will be able to make sense of the information disclosed.
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FishmanMichael200708Mandatory or Voluntary Corporate Disclosure? Michael J. Fishman
Kathleen Hagerty |
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200708Does Location Matter for the Adoption of Internet Technologies in Business?FormanChristopher August 2007 |
Does Location Matter for the Adoption of Internet Technologies in Business?200708FormanChristopher Does Location Matter for the Adoption of Internet Technologies in Business?
From traveling businessmen and women using PDAs as movable offices to large consortiums sharing supercomputing capabilities around the globe, advanced Internet technology has revolutionized the business world. It has obviously had an economic impact, changing the very way that companies do business. But what exactly is the impact? And how can businesses and regional planning boards benefit from a better understanding of the interplay between a business’s location and its adoption of Internet technology? |
FormanChristopher200708Does Location Matter for the Adoption of Internet Technologies in Business? Christopher Forman
Avi Goldfarb Shane Greenstein |
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200707Compete or Cooperate?GansJoshua July 2007 |
Compete or Cooperate?200707GansJoshua Compete or Cooperate?
For generations, would-be entrepreneurs and economists believed that start-up companies were created to bring new innovations to market rapidly and to compete with or displace established firms. The noted economist Joseph Schumpeter famously referred to this process of continuous innovation and displacement as “creative destruction.” Due to this conventional wisdom, the first instinct of most executives at start-ups today is to try to use new technology to outcompete larger, more established and less innovative firms. |
GansJoshua200707Compete or Cooperate? Joshua S. Gans
David H. Hsu Scott Stern |
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200707How to Map and Compare Culture Across FirmsWeberKlaus July 2007 |
How to Map and Compare Culture Across Firms200707WeberKlaus How to Map and Compare Culture Across Firms
Klaus Weber explores how to analyze systematically the language used by companies to communicate with diverse audiences. Comparing the "cultural toolkits" of U.S. and German pharmaceutical companies, he finds that since the 1980s, companies from both countries diverge more in terms of their position in the industry and less on the basis of their country of origin. |
WeberKlaus200707How to Map and Compare Culture Across Firms Klaus Weber
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200707Supply Chain Coordination with Revenue-Sharing ContractsCachonGérard July 2007 |
Supply Chain Coordination with Revenue-Sharing Contracts200707CachonGérard Supply Chain Coordination with Revenue-Sharing Contracts
Industries with relatively low administrative costs and low retail effort, like video rentals, can benefit of using revenue sharing contracts. Gérard Cachon and Martin Lariviere examine the pros and cons of this type of strategy. |
CachonGérard200707Supply Chain Coordination with Revenue-Sharing Contracts Gérard Cachon
Martin Lariviere |
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200706“Acting White,” or Just Acting Rationally?Austen-SmithDavid June 2007 |
“Acting White,” or Just Acting Rationally?200706Austen-SmithDavid “Acting White,” or Just Acting Rationally?
It is painfully well known that in America, black students lag behind white students in essentially all measures of academic achievement. Especially distressing is that many black students who might otherwise succeed are discouraged from doing so by peers who accuse them of “acting white” in their pursuit of education. David Austen-Smith (Kellogg School’s Department of Managerial Economics & Decision Sciences) and his colleague Roland Fryer Jr. (Harvard University) show that rather than reflecting some inherent dysfunction in individuals or communities, this phenomenon could result from perfectly rational individuals responding in the best way possible to their social and economic realities. |
Austen-SmithDavid200706“Acting White,” or Just Acting Rationally? David Austen-Smith
Roland G. Fryer Jr. |
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200706Tax Incentives and the CityMcGuireTherese June 2007 |
Tax Incentives and the City200706McGuireTherese Tax Incentives and the City
William Seward made a much better deal than anyone realized. The former U.S. Secretary of State was bent on buying Alaska, which he did in 1867, paying $7.2 million for the swath of seemingly-barren land. The majority of observers thought the United States had gotten a raw deal, labeling the purchase as “Seward’s Folly.” A few decades later, however, prospectors struck gold and oil in the territory and what looked like folly turned fortuitous. |
McGuireTherese200706Tax Incentives and the City Therese McGuire
Teresa Garcia-Milà |
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200706Celebrity Analyst Influence on the Stock MarketBonnerSarah June 2007 |
Celebrity Analyst Influence on the Stock Market200706BonnerSarah Celebrity Analyst Influence on the Stock Market
There is no question the stock market has had its ups and downs, but have you ever wondered what drives people to pull their money out or pour money into a company? Certainly investors pay attention to analyst forecasts, but which analysts are they paying the closest attention to? Beverly Walther (Kellogg School's Department of Accounting and Information Management), Sarah E. Bonner (University of Southern California) and Artur Hugon (Georgia State University) explored whether investors react stronger to “celebrity” analysts and why. |
BonnerSarah200706Celebrity Analyst Influence on the Stock Market Sarah E. Bonner
Artur Hugon Beverly Walther |
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200706Do Leaders Matter?JonesBenjamin June 2007 |
Do Leaders Matter?200706JonesBenjamin Do Leaders Matter?
The degree to which leaders matter is an old and unsettled question. Despite centuries of thought and study, this issue remains divisive. What none can doubt, however, is this: leaders die. And when they do, national economies can change in major, unexpected ways, according to research by Benjamin Jones, assistant professor of management and strategy at Kellogg, and his colleague Benjamin Olken (Harvard Society of Fellows).
Their report in The Quarterly Journal of Economics provides clear evidence that unpredictable changes in a country’s leadership, due to the executive’s death by accident or illness, can trigger changes in gross domestic product (GDP) growth. In this new light, the grip of massive political institutions on economies appears much less commanding than was previously thought. |
JonesBenjamin200706Do Leaders Matter? Benjamin F. Jones
Benjamin A. Olken |
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200705Wal-Mart Supercenter versus the Traditional SupermarketBlattbergRobert May 2007 |
Wal-Mart Supercenter versus the Traditional Supermarket200705BlattbergRobert Wal-Mart Supercenter versus the Traditional Supermarket
What can your local grocer do to keep you from shopping at Wal-Mart? As Wal-Mart supercenters set up shop near traditional supermarket chains, you have more choices for where to buy groceries. Should you stick with the local chain where you have shopped for years or go to Wal-Mart, where the groceries are cheaper than anywhere else?
Professors Karsten Hansen (Kellogg School of Management), Robert Blattberg (Kellogg School of Management), and Vishal Singh (New York University; graduate of Kellogg’s doctoral Marketing program) set out to determine the impact of the arrival of a Wal-Mart on local customers’ grocery shopping habits. More specifically, they investigated what types of customers are most likely to switch to Wal-Mart.
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BlattbergRobert200705Wal-Mart Supercenter versus the Traditional Supermarket Robert C. Blattberg
Karsten Hansen Vishal P. Singh |
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200705Stair Steps to Heavenly SavingsSohoniMilind May 2007 |
Stair Steps to Heavenly Savings200705SohoniMilind Stair Steps to Heavenly Savings
Manufacturers and retailers often use incentive programs to motivate their sales forces to perform. Volume-based incentives, which reward sales teams based on the number of units sold, are particularly popular; such incentives can boost unit volumes for the company, thus improving market share and creating economies of scale. |
SohoniMilind200705Stair Steps to Heavenly Savings Milind Sohoni
Sunil Chopra Usha Mohan M. Nuri Sendil |
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200705Are Healthcare "Report Cards" Good for Patients?DranoveDavid May 2007 |
Are Healthcare "Report Cards" Good for Patients?200705DranoveDavid Are Healthcare "Report Cards" Good for Patients?
Report cards may improve access to information in the market for healthcare, but also give doctors and hospitals incentives to decline to treat more difficult, severely ill patients. Whether the net impact for society is positive or detrimental depends on whether their financial and health benefits outweigh their costs in terms of quantity, quality, and the appropriateness of the medical treatment they induce. |
DranoveDavid200705Are Healthcare "Report Cards" Good for Patients? David Dranove
Daniel Kessler Mark McClellan Mark Satterthwaite |
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200705Whom You Know MattersHochbergYael May 2007 |
Whom You Know Matters200705HochbergYael Whom You Know Matters
Venture capitalists often acknowledge the critical role of network relationships in the success of individual VC firms, particularly in sourcing investment opportunities, management talent, and information necessary for consistent industry success. One prominent VC, Kleiner Perkins Caufield and Byers, even goes so far as to refer to itself as a “Venture Keiretsu.” Research by Yael Hochberg (Finance Department, Kellogg School of Management) and her colleagues Alexander Ljungqvist and Yang Lu (Stern School of Business, NYU) suggests that VC networks—in particular, relationships with other VC firms—can have a significant positive impact on fund performance.
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HochbergYael200705Whom You Know Matters Yael Hochberg
Alexander Ljungqvist Yang Lu |
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200705Why Do IPO Auctions Fail?JagannathanRavi May 2007 |
Why Do IPO Auctions Fail?200705JagannathanRavi Why Do IPO Auctions Fail?
When Google successfully launched its initial public offering (IPO) by auction in 2004, there was much media and industry fanfare. In reality, using an IPO auction to determine who gets to buy how many shares at what price is an old approach that either never took off in some countries, or has gone out of fashion in others. IPO auctions were attempted in more than twenty countries in the 1980s and early 1990s, but are rare today. |
JagannathanRavi200705Why Do IPO Auctions Fail? Ravi Jagannathan
Ann E. Sherman |
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200705When What You Know Is Not EnoughThomas-HuntMelissa May 2007 |
When What You Know Is Not Enough200705Thomas-HuntMelissa When What You Know Is Not Enough
Is expertise, like beauty, in the eye of the beholder? Recent work by Professor Katherine Phillips (Kellogg School of Management) and Melissa Thomas-Hunt (Cornell University) explores the role of gender dynamics in the expression of expertise. In particular, Phillips and Thomas-Hunt find that gender expectations interfere with the expression, perception, and use of expertise, harming both the experts and the groups that depend upon them. This research explores the possibility that the possession of expertise lies in the eye of the beholder. |
Thomas-HuntMelissa 200705When What You Know Is Not Enough Melissa Thomas-Hunt
Katherine W. Phillips |
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200705Advertising AlignmentSternthalBrian May 2007 |
Advertising Alignment200705SternthalBrian Advertising Alignment
At a time when many categories are populated by parity brands, marketing executives and advertising agencies find it increasingly difficult to win market share and consumer loyalty even when they have strong positioning. There is good news, however, for the savvy marketer. According to research by Brian Sternthal, professor of marketing at the Kellogg School of Management and his colleague Prashant Malaviya (INSEAD), by understanding how consumers make purchase decisions, companies can present information on their products and services in a way that increases advertising effectiveness.
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SternthalBrian200705Advertising Alignment Brian Sternthal
Prashant Malaviya |
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200705Savvy Financial Analysts Adapt to Regulation 'Fair Disclosure'MohanramPartha May 2007 |
Savvy Financial Analysts Adapt to Regulation 'Fair Disclosure'200705MohanramPartha Savvy Financial Analysts Adapt to Regulation 'Fair Disclosure'
The prediction was dire: if financial analysts ceased to get preferential access to information from the companies they followed, the quality of their forecasts would suffer and cause volatility in the markets.
That was the claim made by financial analysts in October 2000 when the Securities and Exchange Commission passed Regulation Fair Disclosure (Reg FD), restricting firms from disclosing nonpublic information to preferred analysts and institutional shareholders. Specifically, Reg FD required that firms conduct investor communications in such a way that all investors received material information at the same time.
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MohanramPartha200705Savvy Financial Analysts Adapt to Regulation 'Fair Disclosure' Partha Mohanram
Shyam Sunder |
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200705The Rhetoric of RestructuringHirschPaul May 2007 |
The Rhetoric of Restructuring200705HirschPaul The Rhetoric of Restructuring
How does the language of business describe the ways inherent organizational problems are addressed? Is the decrease in a firm’s workforce size from “restructuring” really an opportunity for those remaining? Or does this language of increased opportunity just sugarcoat the idea of people losing their jobs? |
HirschPaul200705The Rhetoric of Restructuring Paul Hirsch
Michaela De Soucey |
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200704Uncertainty and IndependenceMazzeoMichael April 2007 |
Uncertainty and Independence200704MazzeoMichael Uncertainty and Independence
Motel chain affiliation is more common than independent ownership when there is greater uncertainty about the prospects for an individual outlet’s success. Factors that contribute to uncertainty for a given motel location include proximity to an interstate highway, room capacity, competition, resident income, traffic volume, and the industry’s economic fluctuation. Under conditions of uncertainty, chain affiliation is beneficial because it helps to stabilize demand for an individual outlet. This research is extendable to the retail sector and service industries, as well as managers analyzing business partnerships and negotiating with suppliers. |
MazzeoMichael200704Uncertainty and Independence Michael J. Mazzeo
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200704Brain GainKuhnenCamelia April 2007 |
Brain Gain200704KuhnenCamelia Brain Gain
Investors systematically deviate from rationality when making financial decisions, yet the mechanisms responsible for these deviations have not been identified. Using data from functional MRI scans, Kuhnen and Knutson examine whether anticipatory neural activity would predict optimal and suboptimal choices in a financial decision-making task. Their findings suggest that distinct neural circuits linked to anticipatory affect promote different
types of financial choices, and indicate that excessive activation of these circuits may lead to investing mistakes. Thus, consideration of anticipatory neural mechanisms may add predictive power to the rational actor model of economic decision-making. |
KuhnenCamelia200704Brain Gain Camelia Kuhnen
Brian Knutson |
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200704Can geography affect your bank account?GuisoLuigi April 2007 |
Can geography affect your bank account?200704GuisoLuigi Can geography affect your bank account?
Do Koreans save more than the British? Are Eastern Europeans more reluctant to invest in stocks? Do Brazilians mistrust financial markets? While modern commerce may be global and pay little attention to national borders, people can retain a kind of economic heritage based on culture that influences their views in provincial ways. |
GuisoLuigi200704Can geography affect your bank account? Luigi Guiso
Paola Sapienza Luigi Zingales |
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200704Majority RulesAusten-SmithDavid April 2007 |
Majority Rules200704Austen-SmithDavid Majority Rules
Incentives to share or suppress information arise in a range of small-group deliberations, from one-on-one conversations to corporate committees, juries and Congressional hearings. The factors behind the half-truths, truth modifications and cheap talk are the focus of the Earl Dean Howard Distinguished Professor of Political Economy's current research. |
Austen-SmithDavid200704Majority Rules David Austen-Smith
Timothy Feddersen |
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200704A Choreographer's CuesAdairWendi April 2007 |
A Choreographer's Cues200704AdairWendi A Choreographer's Cues
On the cross-cultural negotiations stage, the players are similarly challenged to converge despite strong differences in behavior and communication style. In "The Negotiation Dance: Time, Culture, and Behavioral Sequences in Negotiation," Kellogg School Professor Jeanne Brett (with Professor Wendi Adair of Cornell University) presents the intricate patterns of international negotiation, providing insights designed to encourage sure-footedness.
"Negotiating cross culturally presents many challenges," says the DeWitt W. Buchanan Jr. Professor of Dispute Resolution, who joined Kellogg in 1976, "but one of the most important is how people communicate information about their preferences and priorities." |
AdairWendi200704A Choreographer's Cues Wendi L. Adair
Jeanne M. Brett |
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200704Unsure What to Order?ChernevAlexander April 2007 |
Unsure What to Order?200704ChernevAlexander Unsure What to Order?
A study by Kellogg Associate Professor of Marketing Alexander Chernev in the September Journal of Consumer Research finds that when a person is unsure what to choose, pricing all items identically can help ease the decision-making process. The strategy, known as "parity pricing," may increase the likelihood that the diner will order dessert at all. |
ChernevAlexander200704Unsure What to Order? Alexander Chernev
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200704Healthcare Gets a Check-upDranoveDavid April 2007 |
Healthcare Gets a Check-up200704DranoveDavid Healthcare Gets a Check-up
At issue is the reality that today's Americans are part of a healthcare system ridden with maladies, says Dranove, whose upcoming book takes readers on a journey through the barriers that prevent many from accessing quality care at reasonable cost. Employing an economic framework, Dranove chronicles the rise and fall of managed care, discusses ongoing changes (for better or worse, as he puts it) and concludes with his recommendations. |
DranoveDavid200704Healthcare Gets a Check-up David Dranove
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200704Mixed MessagesLeeAngela April 2007 |
Mixed Messages200704LeeAngela Mixed Messages
Each morning we wake to our favorite music blaring from the alarm clock and grab a cup of coffee. At lunch we search the crowd for friendly faces to chat with while we enjoy a type of sandwich we've eaten many times before, perhaps since childhood. And after a long day, we turn in on worn sheets that feel deliciously comfortable after dozens of washings. |
LeeAngela200704Mixed Messages Angela Y. Lee
Aparna Labroo |
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200704Bucks Not a Matter of LuckMikhailMichael April 2007 |
Bucks Not a Matter of Luck200704MikhailMichael Bucks Not a Matter of Luck
It's a perennial debate among investors and financial professionals: Should greater market returns be attributed to superior stock-picking acumen or to mere luck?
Research by Kellogg School Associate Professor of Accounting Beverly Walther and two co-authors considers the question with respect to sell-side analysts — professionals employed by brokerage houses to manage accounts and create publicly available research often relied upon by investors.
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MikhailMichael200704Bucks Not a Matter of Luck Michael B. Mikhail
Beverly Walther Richard H. Willis |
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200704Learning CurveHansenKarsten April 2007 |
Learning Curve200704HansenKarsten Learning Curve
There are those who argue that intelligence, as reflected in test scores, is fixed and immutable. No need for additional schooling, they say; if a student performs poorly on standardized tests, not much can help.
Kellogg School Professor Karsten Hansen begs to differ.
In an award-winning paper published recently in the Journal of Econometrics, Hansen found evidence that an additional year of schooling can indeed boost test scores by up to 2 to 4 percent. |
HansenKarsten200704Learning Curve Karsten Hansen
James J. Heckman Kathleen Mullen |
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200704Cashed OutKorajczykRobert April 2007 |
Cashed Out200704KorajczykRobert Cashed Out
Korajczyk and Sadka, a professor at the University of Washington, looked at how trading costs affect the profitability of investment strategies that rely on these patterns of momentum. They focused in particular on how large a momentum-based fund would have to be before the cost of trading drives profits to zero. Their findings were published in a June 2004 article in the Journal of Finance. |
KorajczykRobert200704Cashed Out Robert Korajczyk
Ronnie Sadka |
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200704Teamwork Takes Center StageGuimeráRoger April 2007 |
Teamwork Takes Center Stage200704GuimeráRoger Teamwork Takes Center Stage
Manhattan is home to Broadway and Wall Street. While geographically close, the worlds of premier theatrical productions and high-flying financial transactions couldn't, on the surface, seem farther apart.
But art, science and business converge in Brian Uzzi's latest research on creative enterprises and the collaborative networks that form in fields such as social psychology, economics, astronomy and professional musical theater. |
GuimeráRoger200704Teamwork Takes Center Stage Roger Guimerá
Brian Uzzi Luís A. Nunes Amaral Jarrett Spiro |
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200704Is the price right?NijsVincent April 2007 |
Is the price right?200704NijsVincent Is the price right?
A brand manager launches an aggressive price promotion with the goal of boosting profits and sales. Could his plan increase demand for the entire product category as well? It may, but not for long, concludes Kellogg School Assistant Professor of Marketing Vincent Nijs in an award-winning paper published in Marketing Science. |
NijsVincent200704Is the price right? Vincent Nijs
Marnik G. Dekimpe Jan-Benedict E.M. Steenkamp Dominique M. Hanssens |
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200704A Dollar ShortBursteinAriel April 2007 |
A Dollar Short200704BursteinAriel A Dollar Short
It happened in one country after another during the 1990s: a large, contractionary currency devaluation followed by surprisingly mild rates of inflation.
But when Kellogg School Finance Professor Sergio Rebelo and his co-researchers looked closely at the aftermath of the devaluations, they observed a remarkably similar set of economic reactions.
Whether in Finland, Sweden, Mexico, Korea, Thailand, Malaysia, the Philippines, Indonesia or Brazil, the same patterns in pricing emerged. In each country, the prices that changed most were those of imports and exports at the dock. The prices of these goods in retail stores were more stable, Rebelo's team found. |
BursteinAriel200704A Dollar Short Ariel Burstein
Craig Burnside Martin Eichenbaum Sergio Rebelo João C. Neves |
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200704Judging the Jury VoteFeddersenTimothy April 2007 |
Judging the Jury Vote200704FeddersenTimothy Judging the Jury Vote
The Sixth Amendment to the Bill of Rights states that in criminal court cases defendants shall enjoy the right to trial by an "impartial jury of the State." Today, the unanimous vote helps courts to abide by American ideals. Clearly, if any juror has a doubt about a defendant’s guilt, the unanimity rule will protect the subject from wrongful punishment, right? Maybe not. |
FeddersenTimothy200704Judging the Jury Vote Timothy Feddersen
Wolfgang Pesendorfer |
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200704Seeking Pleasure? Or Avoiding Pain?AakerJennifer April 2007 |
Seeking Pleasure? Or Avoiding Pain?200704AakerJennifer Seeking Pleasure? Or Avoiding Pain?
Will your customers respond more strongly to advertising that promises fun, happiness and prosperity? Or will an ad stressing the avoidance of illness or hardship be a better sell? |
AakerJennifer200704Seeking Pleasure? Or Avoiding Pain? Jennifer L. Aaker
Angela Y. Lee |
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200704Clause and EffectSpierKathryn April 2007 |
Clause and Effect200704SpierKathryn Clause and Effect
Record companies were incensed two years ago by a judge's decision to award $50 million to Universal Music Group.
The judge had ruled that MP3.com, an online music service, had violated Universal's copyright by allowing users to listen to music online. Universal, along with four other record companies, had sued the Internet upstart. But Universal's rivals had settled when MP3 presented them with an apparently unbeatable deal. |
SpierKathryn200704Clause and Effect Kathryn Spier
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200704Tough Calls Under PressureMurnighanJ. April 2007 |
Tough Calls Under Pressure200704MurnighanJ. Tough Calls Under Pressure
To achieve big success, you often have to take a big risk. Unfortunately, that's where many people tend to clench up. They base their decisions on fears, outside pressures or uninformed "gut" instincts. Or they make no decision at all -- a choice which in itself can be disastrous.
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MurnighanJ.200704Tough Calls Under Pressure J. Keith Murnighan
John C. Mowen |
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