Contemporary consumer behavior research largely conceptualizes post-decision evaluation processes in terms of decision confidence, anticipated regret and satisfaction, and decision and consumption satisfaction. The current research broadens this view, arguing that people additionally experience varying degrees of decision comfort that are distinct from other post-decision evaluations.
Top 15 Financial Times McKinsey Business Book of 2015
In an "activist risk arbitrage," a shareholder attempts to change the course of an announced M&A deal through public campaigns, and profits from improved terms. Compared to conventional (passive) risk arbitrageurs, activists target deals susceptible to managerial conflicts of interest (e.g., going-private and "friendly" deals) and deals with lower announcement premiums. Their presence increases the sensitivity of deal completion to market signals.
This paper explores the quantitative asset-pricing implications of expectations-based reference-dependent preferences, as introduced by Koszegi and Rabin, in an otherwise traditional Lucas-tree m model. I find that the model easily succeeds in matching the historical equity premium and its variability when the preference parameters are calibrated in line with micro evidence. The equity premium is high because expectations-based loss aversion makes uncertain fluctuations in consumption more painful.
Using mutual funds' quarterly holdings of credit default swap (CDS) contracts over 2007-2011, we analyze the motives for and consequences of funds' CDS investment pre- and post-financial crisis. Consistent with theories, funds resort to CDS selling when facing unpredictable liquidity needs and when the CDS security is liquid relative to the underlying bond, and to CDS buying as part of a "negative basis trade" when the bond is illiquid. Smaller funds follow leading funds in yield searching.
This paper investigates citations of influential papers in the marketing and management area. These papers are successful in terms of the direct citations they receive (i.e., primary citations). To be truly influential, however, the papers citing them must in turn be used and cited by subsequent papers (i.e., have secondary citations) to demonstrate their long-run relevance. We propose a measure of enduring impact that takes into account (1) both primary and secondary citations and (2) the number of citations in the bibliography.
This paper examines how prices, markups and marginal costs respond to trade liberalization. We develop a framework to estimate markups from production data with multi-product firms. This approach does not require assumptions on the market structure or demand curves faced by firms, nor assumptions on how firms allocate their inputs across products. We exploit quantity and price information to disentangle markups from quantity-based productivity, and then compute marginal costs by dividing observed prices by the estimated markups.
The role of assortment planning and pricing in shaping sales and profits of retailers is well documented and studied in monopolistic settings. However, such a role remains relatively unexplored in competitive environments. In this paper, we study equilibrium behavior of competing retailers in two settings: i.) when prices are exogenously fixed, and retailers compete in assortments only; and ii.) when retailers compete jointly in assortment and prices.
Researchers have debated whether a person’s behavior can be predicted from his or her face. In particular, it is unclear whether people’s trustworthiness can be predicted from their facial appearance. In the present study, we implemented conceptual and methodological advances in this area of inquiry, taking a new approach to capturing trustworthy behavior and measuring targets’ own self-expectations as a mediator between consensual appearance-based judgments and the trustworthiness of targets’ behavior.