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作者：Chen, Ningyuan; Kou, Steven; Wang, Chun
作者单位：Hong Kong University of Science & Technology; National University of Singapore; Columbia University
摘要：We propose a partitioning algorithm to solve a class of linear-quadratic Markov decision processes with inequality constraints and nonconvex stagewise cost; within each region of the partitioned state space, the value function and the optimal policy have analytical quadratic and linear forms, respectively. Compared to grid-based numerical schemes, the partitioning algorithm gives the closed-formsolution without discretization error, and in many cases does not suffer from the curse of dimension...
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作者：Gong, Jie; Sun, Ang; Wei, Zhichao
作者单位：National University of Singapore; Central University of Finance & Economics
摘要：This paper investigates the value of on-the-job experience for workers' long-run career outcomes. We exploit the effects of team relegation in professional soccer by contrasting players on teams just below and just above the cutoff point of relegation. We find that players on teams relegated to a lower division have more match appearances in the short run, and they play in better leagues and earn higher wages in the long run. This gain is concentrated among individuals who are young or less ex...
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作者：Iyer, Ganesh; Singh, Shubhranshu
作者单位：University of California System; University of California Berkeley; Johns Hopkins University
摘要：This paper describes the incentives for firms to seek voluntary product safety certifications. We consider a firm that makes the decision of whether or not to seek certification prior to selling the product. We show that even when the firm and the consumers have the same beliefs about the product's safety, there are incentives for the firm to seek safety certification. The main analysis investigates the role of consumer moral hazard and shows that it can lead to greater incentives for voluntar...
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作者：Nain, Amrita; Wang, Yan
作者单位：University of Iowa; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
摘要：We show that partial equity ownership of a rival firm reduces product market competition. Acquisitions of a minority equity stake in rival firms are followed by higher output prices and higher industry profits, particularly when barriers to entry are high. Stock-price reactions of nonparticipating competitors of the acquirer and target are positive while announcement returns of customer firms are negative. Moreover, announcement returns of rivals are significantly higher and those of customers...
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作者：Zhang, Xing; Chan, Tat Y.; Xie, Ying
作者单位：Fudan University; Washington University (WUSTL); University of Texas System; University of Texas Dallas
摘要：This paper empirically investigates the interplay between buyer search behavior and firm pricing strategy in a commodity market where many firms compete in price to sell homogeneous products. We use the heterogeneity in buyer search cost to rationalize why a firm offers periodic price discounts and enjoys a high profit in such a market. An estimation method is proposed to recover the nonparametric distribution of buyer search cost from the price and transaction volume data. With both data, we ...
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作者：Kosova, Renata; Sertsios, Giorgo
作者单位：Imperial College London; Universidad de los Andes - Chile
摘要：The relational contracts literature suggests that a principal can improve contract self-enforceability by specifying initial requirements that increase the agent's ex post rents. Initial requirements specified in hotel franchise agreements-size and quality tier of the hotel-offer a unique empirical setting to test this. Using proprietary data on 5,547 new franchised hotels and their revenues, we find that hotels far away from their franchisor's headquarters are larger, more likely to belong to...
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作者：Smith, Edward Bishop; Rand, William
作者单位：Northwestern University; North Carolina State University
摘要：We consider the fruits of integrating agent-based modeling (ABM) with lab-based experimental research with human subjects. While both ABM and lab experiments have similar aims-to identify the rules, tendencies, and heuristics by which individual agents make decisions and respond to external stimuli-they work toward their common goal in notably different ways. Behavioral-lab research typically exposes human subjects to experimental manipulations, or treatments, to make causal inferences by obse...
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作者：Besbes, Omar; Iancu, Dan A.; Trichakis, Nikolaos
作者单位：Columbia University; Stanford University; Massachusetts Institute of Technology (MIT)
摘要：Firms often finance their inventory through debt and subsequently sell it to generate profits and service the debt. Pricing of products is consequently driven by inventory and debt servicing considerations. We show that limited liability under debt induces sellers to charge higher prices and to discount products at a slower pace. We find that these distortions result in revenue losses that compound over time, leading to some form of performance spiral down. We quantify the extent to which thes...
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作者：Aretz, Kevin; Florackis, Chris; Kostakis, Alexandros
作者单位：University of Manchester; University of Liverpool
摘要：This study constructs a novel data set of bankruptcy filings for a large sample of non-U.S. firms in 14 developed markets and sheds new light on the cross-sectional relation between default risk and stock returns. Using the reduced-form approach of Campbell et al. (2008) to estimate default probabilities, we offer conclusive evidence supporting the existence of a significant positive default risk premium in international markets. This finding is robust to different portfolio weighting schemes,...
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作者：Longstaff, Francis A.
作者单位：University of California System; University of California Los Angeles; National Bureau of Economic Research
摘要：We model illiquidity as a restriction on the stopping rules investors can follow in selling assets, and apply this framework to the valuation of thinly traded investments. We find that discounts for illiquidity can be surprisingly large, approaching 30%-50% in some cases. Immediacy plays a unique role and is valued much more than ongoing liquidity. We show that investors in illiquid enterprises have strong incentives to increase dividends and other cash payouts, thereby introducing potential a...
