How Do Product Attributes and Reviews Moderate the Impact of Recommender Systems through Purchase Stages?

Published Research

We investigate the impact of several different recommender algorithms (e.g., Amazon.com’s “Consumers who bought this item also bought”), commonly used in ecommerce and online services, on sales volume and diversity, using field experiment data on movie sales from a top retailer in North America. Read More

Economics of Leveraged Buyouts: Theory and Evidence from the UK Private Equity Industry

Working Papers

Empirical analysis of a sample of companies with private equity (PE) ownership in the UK shows that PE firms act as deep-pocket investors for their portfolio companies, rescuing them if they fall in financial distress.Read More

Initial Coin Offerings, Speculators, and Asset Tokenization

Working Papers

Initial Coin Offerings (ICOs) are an emerging form of fundraising for Blockchain-based startups. We propose a simple model of matching supply with demand with ICOs by companies involved in production of physical products.Read More

Physician-Industry Interactions: Persuasion and Welfare

Working Papers

In markets where consumers seek expert advice regarding purchases, firms seek to influence experts, raising concerns about biased advice. We combine a model of supply and demand with a local instrumental variables strategy based on regional spillovers from academic medical center conflict-of-interest policies. Read More

Competition, Technology Licensing-in, and Innovation

Published Research

Although the relationship between competition and firm innovation has long been of scholarly interest, prior research has predominantly considered changes in internal research and development (R&D) as a strategic response to competitors’ actions.Read More

(How) Do Risky Perks Benefit Firms? The Case of Unlimited Vacation

Working Papers

This paper addresses the recent trend of offering unlimited vacation to employees. While potentially useful for acquiring human capital benefits, unlimited vacation is a risky perk for firms due to the possibility of abuse.Read More

You Only Get One Shot: Restricting the Number of Times Consumers Can Access Content Increases Their Resource Allocation During Information Processing

Working Papers

Most digital communication platforms store content and allow users to see it multiple times. Despite the benefits that recording content holds for both users and companies, many applications delete it after it was seen by the receiver (i.e., ephemeral communication channels). Read More

Commuting and Innovation: Are Closer Inventors More Productive?

Working Papers

Commuting is costly for employees, but is it costly for employers in terms of lost productivity? We study the causal effects of commuting distance on inventor productivity. Specifically, we estimate how inventor productivity changes when their employer relocates.Read More

When the Wind of Change Blows, Build Batteries? Optimal Renewable Generation and Energy Storage Investments

Working Papers

Renewables have become the cheapest energy sources in most of the world but their generation remains variable and difficult to predict. However, recent technology advances have rendered large-scale electricity storage economically viable, thus mitigating the renewable intermittency issue and enabling combinations of e.g. wind and batteries to replace fossil fuel power plants.Read More

Predation and Self-Defense: Feedback and Contagion through Distressed Competition

Working Papers

Firms tend to compete on prices more aggressively when they are in financial distress; the intensified competition in turn reduces firms’ profit margins, pushing them further into distress. Competitors’ aggressive pricing reactions could be attributed to both predatory and self-defensive incentives.Read More

Consumer Preferences and Firm Technology Choice

Working Papers

Advances in intelligent technologies change the way consumers search and shop for products. Emerging is the trend of home-shopping devices such as Amazon’s Alexa and Google Home, which allow consumers to search or order products using voice commands.Read More

The Impact of Acquisitions on Clinical Decisions: Evidence from Physician Practice Management Companies

Working Papers

Mergers and acquisitions are rapidly transforming the organization of physician services in the United States, raising concerns over the cost and the quality of health care. This paper studies how medical practice acquisitions by Physician Practice Management Companies (PPMCs) impact physician behavior and patient health.Read More

The Short-run Effects of GDPR on Consumer Engagement and Search

Working Papers

In today’s connected world, individuals are no longer mere consumers of goods, information and services, but public producers of often valuable data. In fact, personal data is becoming such a core input that The Economist called it “the world’s most valuable resource” ahead of oil.Read More

How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B Program

Skilled immigration restrictions may have secondary consequences that have been largely overlooked in the immigration debate: multinational firms faced with visa constraints have an offshoring option, namely, hiring the labor they need at their foreign affiliates.Read More

Organizing Knowledge Production Teams Within Firms for Innovation

Published Research

How should firms organize their pool of inventive human capital for firm-level innovation? Although access to diverse knowledge may aid knowledge recombination, which can facilitate innovation, prior literature has focused primarily on one way of achieving that: diversity of inventor-held knowledge within a given knowledge production team. Read More