-
作者：Jin, Chen; Yang, Luyi; Zhu, Cungen
作者单位：National University of Singapore; University of California System; University of California Berkeley
摘要：The right-to-repair (RTR) movement calls for government legislation that requires manufacturers to provide repair information, tools, and parts so that consumers can independently repair their own products with more ease. The initiative has gained global traction in recent years. Repair advocates argue that such legislation would break manufacturers' monopoly on the repair market and benefit consumers. They further contend that it would reduce the environmental impact by reducing e-waste and n...
-
作者：Aldrich, Eric M.; Friedman, Daniel
作者单位：Amazon.com; University of Essex; University of California System; University of California Santa Cruz
摘要：Several financial exchanges (e.g., IEX and NYSE American) recently introduced messaging delays to protect ordinary investors from high-frequency traders who exploit stale orders. To capture the impact of such delays, we propose a simple parametric model of the continuous double auction market format. The model examines the dynamics of midpoint pegged order queues and finds their steady states. It shows how messaging delays can protect pegged orders and improve investor welfare, but typically i...
-
作者：Benos, Evangelos; Huang, Wenqian; Menkveld, Albert; Vasios, Michalis
作者单位：University of Nottingham; Bank for International Settlements (BIS); Vrije Universiteit Amsterdam
摘要：Fragmenting clearing across multiple central counterparties (CCPs) is costly because global dealers cannot net positions across CCPs. They have to collateralize both the short position in one CCP and an offsetting long position in another CCP. This, coupled with a structural net order imbalance across CCPs, can cause prices to persistently differ across them (the CCP basis). Tests based on unique CCP data for interest-rate derivatives (IRDs) yield broad empirical support for this intuition and...
-
作者：Narayan, Ayushi
作者单位：Harvard University
摘要：I study the impact of financial stress on the incidence of harassment and discrimination using Equal Employment Opportunity (EEO) charges brought forward by U.S. Postal Service workers. An analysis of more than 800,000 EEO charges filed between 2004 and 2019 demonstrates that financial stress experienced in the second week of the pay cycle increases EEO incidents by about 5% compared with the first week. Further analyses suggest that the uncovered effects are driven by changes in the number of...
-
作者：de Vericourt, Francis; Gurkan, Huseyin
摘要：Artificial intelligence systems are increasingly demonstrating their capacity to make better predictions than human experts. Yet recent studies suggest that professionals sometimes doubt the quality of these systems and overrule machine-based prescriptions. This paper explores the extent to which a decision maker (DM) supervising a machine to make high-stakes decisions can properly assess whether the machine produces better recommendations. To that end, we study a setup in which a machine perf...
-
作者：Fisman, Ray; Huang, Wei; Ning, Bo; Pan, Yue; Qiu, Jiaping; Wang, Yongxiang
作者单位：Boston University; University of International Business & Economics; Xiamen University; Xiamen University; McMaster University; Shanghai Jiao Tong University; The Chinese University of Hong Kong, Shenzhen
摘要：We show that superstitions-beliefs without scientific grounding-impact the investment and risk-taking of Chinese firms. We focus on widely held beliefs in bad luck during one's zodiac year, which occurs on a 12-year cycle around a person's birth year, to study superstitions and risk taking. We first show a direct correspondence between zodiac year and risk taking via survey data: respondents are two percentage points more likely to favor no-risk investments if queried during their zodiac year....
-
作者：Hasler, Michael; Khapko, Mariana
作者单位：University of Texas System; University of Texas Dallas; University of Toronto; University Toronto Scarborough; University of Toronto
摘要：The term structure of equity risk premium is moderately downward-sloping unconditionally, markedly downward-sloping in good times, and markedly upward-sloping in bad times. An asset-pricing model featuring time-varying correlation between realized and expected cashflow shocks explains these puzzling empirical findings. Indeed, the model-implied slope of the equity term structure is in line with the data, both conditionally and unconditionally, because the estimated cashflow shock correlation i...
-
作者：Aragon, George O.; Chung, Ji-Woong; Kang, Byoung Uk
作者单位：Arizona State University; Arizona State University-Tempe; Korea University; Hong Kong Polytechnic University
摘要：Using the setting of funds of hedge funds (FoFs), we show that prime brokers (PBs) facilitate investors' search for informed hedge fund managers. We find that FoFs exhibit PB bias, a disproportionate preference for hedge funds serviced by their connected PBs. This PB bias is strongerwhen the cost of hedge fund due diligence is higher relative to capital and when the FoF's management firm generates higher prime brokerage fees. PB bias also predicts FoF performance: the highest PB-bias quartile ...
-
作者：Chan, Tian Heong; Lim, Shi-Ying
作者单位：Emory University; National University of Singapore
摘要：Exaptation refers to the emergence of novel functionalities in existing products. Exaptations frequently arise in the context of users who creatively modify (or hack) existing products to accommodate new needs. Here, we examine how product-first (compared with problem-first) search affects the occurrence of exaptations. In a product-first search, the user identifies the product to be hacked before seeking a viable need. In a problem-first search, the user has a defined problem before seeking a...
-
作者：Fischetti, Martina; Fischetti, Matteo
作者单位：University of Padua
摘要：We address a very important problem in offshore wind farm design, namely, the combined optimization of the turbine location and of the connection cables required to bring the electrical power produced by the turbines to a given substation, and eventually to shore. We first describe a mixed-integer linear programming model that combines previous proposals from the literature. Then we improve it by a number of additional inequalities intended to strengthen its linear programming relaxation. In p...
