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Firms invest heavily in customer capital, and such investment is a main source of intangible capital value. This study … measures investment in customer capital using sales and marketing expense from income statements, information on salaries paid …. Firms emphasize brand value, sales force, customer service, advertising, and the acquisition and use of customer data as …
Persistent link: https://www.econbiz.de/10015145122
markets, which require firms to spend resources on customer acquisition, this paper develops a search theoretic model of firm … dynamics in frictional product markets. Introducing search frictions generates long-term customer relationships, rendering the … customer base a state variable for firms, which is sluggish to adjust. This affects: the level and volatility of firm …
Persistent link: https://www.econbiz.de/10012461466
Platform marketplaces can potentially steer buyers to certain sellers by recommending or guaranteeing those sellers. Money-back guarantees--which create a direct financial stake for the platform in seller performance--might be particularly effective at steering, as they align buyer and platform...
Persistent link: https://www.econbiz.de/10012479867
Digital platforms are not only match-making intermediaries but also establish internal rules that govern all users in their ecosystems. To better understand the governing role of platforms, we study two Airbnb pro-guest rules that pertain to guest and host cancellations, using data on Airbnb and...
Persistent link: https://www.econbiz.de/10012585362
We test whether firms use incompatibility strategically, using data from ATM markets. High ATM fees degrade the value of competitors' deposit accounts, and can in principle serve as a mechanism for siphoning depositors away from competitors or for creating deposit account differentiation. Our...
Persistent link: https://www.econbiz.de/10012466057
in interest rates would have led to liquidity needs close to the cash holdings of the pension fund and insurance sector …
Persistent link: https://www.econbiz.de/10015171644
Over the last twenty years, the consensus view of systemic risk in the financial system that emerged in response to the banking crises of the 1930s and before has lost much of its relevance. This view held that the main systemic problem is runs on solvent banks leading to bank panics. But...
Persistent link: https://www.econbiz.de/10012467237
the seemingly failure of the private insurance market to provide coverage for terrorism losses after the attack on … government provision of terrorism insurance. The paper argues that mostly unfettered insurance and capital markets are capable of …
Persistent link: https://www.econbiz.de/10012467649
This paper examines the role that insurance has played in dealing with terrorism before and after September 11, 2001 …, by focusing on the distinctive challenges associated with terrorism as a catastrophic risk. The Terrorism Risk Insurance … Act of 2002 (TRIA) was passed by the U.S. Congress in November 2002, establishing a national terrorism insurance program …
Persistent link: https://www.econbiz.de/10012467819
This paper builds on Froot and Stein (1998) in developing a framework for analyzing the risk allocation, capital budgeting, and capital structure decisions facing insurers and reinsurers. The model incorporates three key features: i) value-maximizing insurers and reinsurers face product-market...
Persistent link: https://www.econbiz.de/10012468510