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We study whether, how, and why the investment of a firm depends on the investment of other firms in the same product market. Using an instrumental variable based on the presence of local knowledge externalities, we find a sizeable complementarity of investment among product market peers, holding...
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This paper investigates the effect of grouping students by prior achievement into different classes (or schools) in settings where students are competing for admission to programs offering only a limited number of places. We first develop a model that identifies the conditions under which the...
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Everyone remembers a plot where a disadvantaged individual facing the prospect of failure, spends more effort, turns around the game and wins unexpectedly. Most tournament theories, however, predict the opposite pattern and see the disadvantaged agent investing less effort. We show that 'turn...
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-based loss averse. For these consumers, a purchase plan, which involves buying products of varying quality and price with … positive probability, creates disutility from gain-loss sensations. Even at modest degrees of loss aversion they may refrain … behavior and loss aversion in new survey data. …
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indeed, certain aspects of culture enhance bilateral trade performance/competitiveness. Performance Orientation, Future … trade policy options. By understanding which aspects of culture promote bilateral competitiveness and performance …Purpose: Culture plays a role in international trade much as it does in any other human activity. Attitudes and ways of …
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observe striking differences in how men and women respond to good and bad luck in a competitive environment. Following a loss … help to explain both female underperformance in environments with repeated competition and the tendency for women to select …
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