-
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 ...
-
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...
-
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...
-
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...
-
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,...
-
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...
-
作者：Cui, Yao; Duenyas, Izak; Sahin, Ozge
作者单位：Cornell University; University of Michigan System; University of Michigan; Johns Hopkins University
摘要：In this paper, we study a conditional upgrade strategy that has recently emerged in the travel industry. After a consumer makes a reservation for a product (e.g., a hotel room), she is asked whether she would like to upgrade her product to a higher-quality (more expensive) one at a discounted price. The upgrade, however, is not fulfilled immediately. The firm fulfills upgrades at check-in if higher-quality products are still available, and the upgrade fee is charged to the consumer if and only...
-
作者：Huang, Tingliang; Liang, Chao; Wang, Jingqi
作者单位：Boston College; University of Hong Kong
摘要：Bespoke, or mass customization strategy, combines demand learning and preference learning. We develop an analytical framework to study the economic value of bespoke systems and investigate the interaction between demand learning and preference learning. We find that it is possible for demand learning and preference learning to be either complements or substitutes, depending on the customization cost and the demand uncertainty profile. They are generally complements when the personalization cos...
-
作者：Badarinza, Cristian; Campbell, John Y.; Ramadorai, Tarun
作者单位：National University of Singapore; Centre for Economic Policy Research - UK; Harvard University; National Bureau of Economic Research; Imperial College London
摘要：The relative popularity of adjustable-rate mortgages (ARMs) and fixed-rate mortgages (FRMs) varies considerably both across countries and over time. We ask how movements in current and expected future interest rates affect the share of ARMs in total mortgage issuance. Using a nine-country panel and instrumental variables methods, we present evidence that near-term(one-year) rational forecasts of future movements in ARM rates do affect mortgage choice, particularly in more recent data since 200...
-
作者：Adams, Renee; Diether, Karl; Giesecke, Kay; Manso, Gustavo; Piskorski, Tomasz; Shumway, Tyler
作者单位：University of New South Wales Sydney; Brigham Young University; Stanford University; University of California System; University of California Berkeley; Columbia University; University of Michigan System; University of Michigan
