The authors use large reductions of import tariffs to examine how incumbent firms modify investment when the threat of entry by foreign rivals intensifies. Incumbents reduce investment by 7.2% of capital in response to higher entry threat. This effect is robust, pervasive, and likely causal....

Political activism positively affects firm innovation. Firms that support more politicians, politicians on Congressional committees with jurisdictional authority over the firms’ industries and politicians who join those committees innovate more. The authors employ instrumental variables...

Nudge is a semantically multifarious concept that originates in Thaler and Sunstein's (2008) popular eponymous book. In one of its senses, it is a policy for redirecting an agent's choices by only slightly altering his choice conditions, in another sense, it is concerned with bounded rationality...

One apparent reason for deferring a decision – abstaining from choosing, leaving the decision open to be taken by someone else, one’s later self, or nature – is for lack of sufficient confidence in the relevant beliefs. This paper develops an axiomatic theory of decision in situations...

At a time in which behavioural science has gained increasing attention for the design of population-wide health interventions, this chapter discusses its potential contributions to the prevention and control of Non-Communicable-Diseases (NCDs). Given the largely preventable nature of NCDs, any...

It is becoming increasingly easier for researchers and practitioners to collect eye tracking data during online preference measurement tasks. The authors develop a dynamic discrete choice model of information search and choice under bounded rationality, that they calibrate using a combination of...

This paper proposes an indirect inference (Gourieroux, Monfort and Renault, 1993; Smith, 1993) estimation method for a large class of dynamic equilibrium models. The authors' approach is based on the observation that the econometric structure of these systems naturally generates auxiliary equilibria...

La théorie de l’agrégation des jugements, ou, comme elle est ici conçue,de l’agrégation logique, généralise celle du choix social en faisant porter la règle d’agrégation sur des jugements quelconques au lieu des seuls jugements depréférence. Elle procède du paradoxe doctrinal de...

Building on social capital theory, the authors view the marketing and sales interface as a set of inter-group ties and investigate how firms (1) generate value from inter-group relationships and (2) develop the social capital embedded in these relationships. Their findings suggest that social...

In unsettled fields with multiple ideal-typical institutional logics, why do organizations tend to weaken or conform to prevalent logic order? The authors argue that prestige, defined as a tribute paid by field members to a select few with valued distinctive traits, plays a determinant role in...