Almost 50 prominent business schools were "named" in the 1980s and 1990s, in exchange for sizable donations. We view this as an interesting example of the exhaustible resource market examined in Hotelling (1931). Schools face a trade-off that involves a possible benefit from waiting (to receive...

The authors show that, when some investors hold levered portfolios by engaging in margin borrowing, repeated rounds of trading can result in market instability--in the sense that prices can move rationally--even in the absence of any change in fundamentals. They show this with a simple model in...

We model an IPO company's optimal response to the presence of sentiment investors. "Regular" investors are allocated stock that they subsequently sell to sentiment investors. Because sentiment demand may disappear prematurely, carrying IPO stock in inventory is risky, so for regulars to break...