-
作者：Bostanci, Gorkem; Yildirim, Pinar; Jerath, Kinshuk
作者单位：University of British Columbia; University of Pennsylvania; University of Pennsylvania; Columbia University
摘要：Negative advertising provides information about the weaknesses of a competitor's product. We study negative advertising with a focus on how its regulation impacts product positioning for profit-maximizing firms. We build a model of informative advertising competition, where product positioning is endogenous, and consumers have rational expectations. We show that despite the informational benefits of negative advertising, permitting it (as the Federal Trade Commission in the United States does)...
-
作者：Laferriere, Vincent; Staubli, David; Thoni, Christian
作者单位：University of Lausanne
摘要：We report experimental data from standard market entry games and winner-take-all games. At odds with traditional decision-making models with risk aversion, the winner-take-all condition results in substantially more entry than the expected-payoff-equivalent market entry game. We explore three candidate explanations for excess entry: blind spot, illusion of control, and joy of winning, none of which receive empirical support. We provide a novel theoretical explanation for excess entry based on ...
-
作者：Han, Yi; Liu, Yiming; Loewensteind, George
作者单位：Renmin University of China; Humboldt University of Berlin; Carnegie Mellon University
摘要：When drawing inferences about a person's personal characteristics from the person's actions, correspondence bias is the tendency to overestimate the influence of those characteristics and underestimate the influence of situational factors, such as incentives the individual faces. We build a simple framework to formalize correspondence bias and test its predictions in an online experiment. Consistent with correspondence bias, subjects are, on average, willing to pay to receive the dictator-game...
-
作者：Gordon, Brett R.; Lovett, Mitchell J.; Luo, Bowen; Reeder, James C., III
作者单位：Northwestern University; University of Rochester; Northeastern University; Purdue University System; Purdue University
摘要：We study the effects of positive and negative advertising in presidential elections. We develop a model to disentangle these effects on voter turnout and candidate choice. The central empirical challenges are highly correlated and endogenous advertising quantities that are measured with error. To address these challenges, we construct a large set of potential instruments, including interactions with incumbency that we demonstrate provide the critical identifying variation, and apply machine-le...
-
作者：Bretscher, Lorenzo; Hsu, Alex; Tamoni, Andrea
作者单位：Swiss Finance Institute (SFI); University of Lausanne; University System of Georgia; Georgia Institute of Technology; Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark
摘要：Uncertainty shocks are also risk premium shocks. With countercyclical risk aversion (RA), a positive shock to uncertainty increases risk and elevates RA as consumption growth falls. The combination of high RA and high uncertainty produces significant equity risk premia in bad times, which in turn, exacerbate the decline of macroeconomic aggregates and equity prices. Moreover, in the cross-section of equity returns, investors demand a risk premium for stocks that perform poorly in times of high...
-
作者：Liu, Meng; Tang, Xiaocheng; Xia, Siyuan; Zhang, Shuo; Zhu, Yuting; Meng, Qianying
作者单位：Washington University (WUSTL); Shanghai Jiao Tong University; National University of Singapore
摘要：The low rate of adoption by human users often hinders AI algorithms from achieving their intended efficiency gains. This is particularly true for algorithms that prioritize system-wide objectives because they can create misalignment of incentives and cause confusion among potential users. We provide one of the first large-scale field studies on algorithm aversion by leveraging an algorithmic recommendation rollout on a large ride sharing platform. We identify contextual experience and herding ...
-
作者：Fu, Shiming; Trigilia, Giulio
作者单位：Shanghai University of Finance & Economics; University of Rochester
摘要：We study a dynamic moral hazard setting where the manager has private evi-dence that predicts the firm's cash flows. Bad-news disclosure is rewarded by a lower bor-rowing cost relative to the no-evidence case, whereas no disclosure leads to higher borrowing costs. For a given capital structure, disclosure reduces the firm's default risk by lowering its pay-for-performance sensitivity. However, for a set of low-profitability firms, the anticipation of future disclosure of information by manager...
-
作者：Cornaggia, Kimberly; Hund, John; Nguyen, Giang
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University System of Georgia; University of Georgia
摘要：Economic theory predicts that bond insurance lowers issuers' financing costs by resolving asymmetric information and mitigating credit risk. With comprehensive data over the last 36 years, we find increasingly diminished empirical support for these models. The value of insurance in resolving asymmetric information beyond that resolved by credit ratings and other observable bond characteristics is economically minimal. The average gross value of insurance ranges from 4 to 14 bps when bond insur...
-
作者：Amodio, Francesco; Hoey, Sam; Schneider, Jeremy
作者单位：McGill University; McGill University; University of Luxembourg; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; The World Bank
摘要：Does the arrival of culturally diverse workers affect the work style of incumbent workers? We examine how the large influx of Russian hockey players in the National Hockey League after 1989 affected North American-born players. The Soviet style of hockey was largely based on skilled skating, constant movement, circling, and passing. In contrast, the North American play was more individualistic and linear, with higher emphasis on physical strength and aggressive behavior. Using 50 years of data...
-
作者：Gur, Yonatan; Macnamara, Gregory; Morgenstern, Ilan; Saban, Daniela
作者单位：Stanford University
摘要：We consider a platform facilitating trade between sellers and buyers with the objective of maximizing consumer surplus. Even though in many such marketplaces, prices are set by revenue-maximizing sellers, platforms can influence prices through (i) price-dependent promotion policies that can increase demand for a product by featuring it in a prominent position on the web page and (ii) the information revealed to sellers about the value of being promoted. Identifying effective joint information ...
