How can an investor learn from poker experts David Slansky and Puggy Pearson? What does guppy mate selection tell us about stock market booms? Do Tupperware parties have anything to tell us about how we select stocks? These are just some of the questions Michael Mauboussin considers in More Than You Know.
The conference paper by Johnson (2006, Review of Accounting Studies, forthcoming) develops an incomplete-contracting transfer pricing model with a number of novel features: taxation, sequential investments, and intangible assets being transferred. This discussion aims to disentangle these features so as to highlight those that are the key drivers of the results. Moreover, I show that some of the results can be generalized to settings involving a greater level of technological interdependency between the divisions.
The authors posit that women can rely on self-monitoring to overcome negative gender stereotypes in certain performance contexts. In a study of mixed-sex task groups, the authors found that female group members who were high self-monitors were considered more influential and more valuable contributors than women who were low self-monitors. Men benefited relatively less from self-monitoring behavior.
Hospital diagnostic facilities, such as magentic resonance imaging centers, typically provide service to several diverse patient groups: outpatients, who are scheduled in advance; inpatients, whose demands are generated randomly during the day; and emergency patients, who must be served as soon as posssible. Our analysis focuses on two inter-related tasks: designing the outpatient appoitnment schedule, and establishing dynamic priority rules for admitting patients into service.
Recent empirical research documents that the strong short-term relationship between U.S. monetary aggregates on one side and inflation and real output on the other has mostly disappeared since the early 1980s. Using the direct estimate of flows of U.S. dollars abroad we find that domestic money (currency corrected for the foreign holdings of dollars) contains valuable information about future movements of U.S. inflation and real output.
We examine the pricing of aggregate volatility risk in the cross-section of stock returns. Consistent with theory, we find that stocks with high sensitivities to innovations in aggregate volatility have low average returns. Stocks with high idiosyncratic volatility relative to the Fama and French (1993, Journal of Financial Economics 25, 2349) model have abysmally low average returns. This phenomenon cannot be explained by exposure to aggregate volatility risk.
Time preference is a key determinant of occupational choice and investments in human capital. Since careers are characterized by different wage growth prospects, individual discount rates play an important role in the relative valuation of jobs or occupations. We predict that individuals with lower discount rates are more likely to select into jobs or occupations with steeper wage profiles. To test this hypothesis we use smoking as an instrument for time preference.
This paper investigates the interaction between synergies and internal agency conflicts that emerges endogenously in multi-division firms. A divisional manager's entrenchment choice depends directly on the specificity of her division's assets, because the specificity governs whether entrenchment activities reduce the likelihood of her division being divested. The presence of synergies, by modifying the difference between the value of assets in their current use and in alternative uses, may alter the divisional manager's entrenchment incentive.
Narcissism has received increased attention in the past few decades as a sub-clinical individual difference with important everyday consequences, such as self-enhancement in perceptions of one's own behavior and attributes. The most widespread measure used by non-clinical researchers, the 40-item Narcissistic Personality Inventory or NPI-40, captures a range of different facets of the construct but its length may prohibit its use in settings where time pressure and respondent fatigue are major concerns.