Contrary to the predictions of standard economic theory, capital market liberalization has been a mixed blessing for many countries. Liberalization of debt inflows exposes economies to the risk of crises stemming from sudden changes in investor sentiment. Equity market liberalizations, on the...

We present the "strategy diamond," which extends received strategic management theory by integrating the positional view and the resource-based view, the formulation and implementation of strategy, and the firm's internal selection environment into one relatively simple novel conceptual...

This paper derives the optimal simultaneous capacity and production plan for a high volatility, short life-cycle, produce-to-stock, product that requires (at least some) dedicated production capacity. Capacity can be reduced as well as added, at exogenously set unit prices. We show that a target...

We argue that a way culture influences decisions is through the reasons that individuals recruit when required to explain their choices. Specifically, we propose that cultures endow individuals with different rules or principles that provide guidance for making decisions, and a need to provide...

This paper examines whether CEOs are fired after bad firm performance caused by factors beyond their control. Standard economic theory predicts that corporate boards filter out exogenous industry and market shocks from firm performance before deciding on CEO retention. Using a new hand-collected...

A theory of decision-making is proposed that speaks to Herbert Simon's methodological critique of economics without resorting to excessive reductionism. Formally, the new theory removes the Contraction axiom of conventional choice theory (which is itself reviewed in detail). In its...

This paper analyzes the effects of business cycle volatility on measures of subjective well-being, including self-reported happiness and life satisfaction. I find robust evidence that high inflation and, to a greater extent, unemployment lower perceived well-being. Greater macroeconomic...

In this research we propose a web-based adaptive self-explicated approach for multi-attribute preference measurement (conjoint analysis) with a large number (ten or more) of attributes. In the empirical application reported here the proposed approach provides a substantial and significant...

In two longitudinal experiments, conducted both in the field and lab, we investigated the recollection of mixed emotions. Results demonstrated that the intensity of mixed emotions is generally underestimated at the time of recall--an effect that increases over time and does not occur to the same...

This paper examines the impact of trade liberalization episodes on movements of labor across sectors. The aim is to evaluate the empirical support for two classes of models: those where the effects of trade are mediated by structural change, and those where the effects of trade do not rely on...