WP 2010

WP 2010-20 The Relationship Between Addiction and Reward Bundling: An Experiment Comparing Smokers and Non-Smokers

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Published in 2011 in Addiction, Volume 106, Issue 2.

ABSTRACT. Aims Previous studies indicate that addicts show reduced patience, compared to nonaddicts, for more delayed versus more immediate rewards. This may reflect a lower propensity to view such decisions in terms of the larger sequences to which they typically belong (e.g. smoking is… more »

WP 2010-19 Preferences Over Social Risk

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Published in 2013 in Oxford Economic Papers, Volume 65, Issue 1.

ABSTRACT. We elicit individual preferences over social risk. We identify the extent to which these preferences are correlated with individual preferences over individual risk and individual preferences over the well-being of others. We examine these preferences in the context of… more »

WP 2010-18 Participation Constraints in the Stock Market: Evidence from Unexpected Inheritance due to Sudden Death

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Published in 2011 in The Review of Financial Studies, Volume 24, Issue 5.

ABSTRACT. We use a natural experiment to investigate the impact of participation constraints on individuals’ decisions to invest in the stock market. Unexpected inheritance due to sudden deaths results in exogenous variation in financial wealth, and allows us… more »

WP 2010-17 Inferring Beliefs as Subjectively Uncertain Probabilities

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Published in 2012 in Theory and Decision, Volume 73, Issue 1.

ABSTRACT. We propose a method for estimating subjective beliefs, viewed as a subjective probability distribution. The key insight is to characterize beliefs as a parameter to be estimated from observed choices in a well-defined experimental task, and to estimate that… more »

WP 2010-15 Monopolistic Competition, Managerial Compensation, and the Distribution of Firms in General Equilibrium

Posted On January 15, 2010
Categories Working Papers, WP 2010

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ABSTRACT. We develop a general equilibrium model to show how the distribution of firm qualities, moral hazard, and monopolistic competition in the product market interact to effect the distributions of firm size and managerial compensation. We exploit the properties of the unique, stationary general equilibrium of the model to derive a number… more »

WP 2010-14 Capital Structure under Heterogeneous Beliefs

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Published in 2014 in Review of Finance, Volume 18, Issue 5.

ABSTRACT. We develop a dynamic structural model to examine the effects of differing beliefs of the manager and outsider investors regarding the profitability of a firm’s projects and manager-shareholder agency conflicts on its capital structure. The manager receives dynamic incentives… more »

WP 2010-13 Dynamic Contracting under Imperfect Public Information and Asymmetric Beliefs

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Published in 2013 in Journal of Economic Dynamics and Control, Volume 37, Issue 12.

ABSTRACT. We develop a dynamic principal–agent model to show how imperfect public information and asymmetric beliefs, asymmetric risk attitudes, complementary actions by both parties, and inter-temporal adverse selection arising from the agent’s unobservable actions interact to affect… more »

WP 2010-12 Form over Matter: Differences in the Incentives to Convert Using Full versus Partial Demutualization in the U.S. Life Insurance Industry

Posted On January 13, 2010
Categories Working Papers, WP 2010

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ABSTRACT. The recent wave of demutualizations has led to the declining significance of the mutual organizational form in the U.S. life insurance industry. Although the prior literature is fairly conclusive regarding the motivations that life insurers had to demutualize, previous research has only considered the decision of whether to convert from the… more »