Economics Insights @ CBS

This special issue of Production and Operations Management offers a sample of ongoing research that focuses currently on the services industries. The articles selected cover a spectrum of application areas as well as methodologies.

We show that the consolidation of orders is important for producing efficient prices, especially during times of high liquidity demand. The NYSE's centralized opening call market performs better than Nasdaq's decentralized opening process on typical trading days. The NYSE is much better than Nasdaq on witching days when index arbitrage activity subjects S&P 5(X) stocks to large, predictable, and mostly in format ionless order flow around quiirterly futures contract expirations.

A common feature of managerial and financial reporting is an iterative process wherein various parties selectively correct particular measurements by challenging them and subjecting them to increased scrutiny. We model this feature by adding an agent appeal stage to the standard moral hazard model and show that it can be optimal to allow the agent to decide which performance measures to appeal, despite the agent's incentive to cherry-pick. In the presence of measurement errors, the agent is incentivized by increased opportunities for cherry-picking that arise if he chooses the "right" vs.

Nine studies demonstrated that perspective-takers are particularly likely to adopt a target's positive and negative stereotypical traits and behaviors. Perspective-takers rated both positive and negative stereotypic traits of targets as more self-descriptive. As a result, taking the perspective of a professor led to improved performance on an analytic task, whereas taking the perspective of a cheerleader led to decreased performance, in line with the respective stereotypes of professors and cheerleaders.