This study endogenously generates the asymmetric verification concept of conservatism, using evolutionary biology as a foundation. A producer produces (or hunts) a consumable with a stochastic production technology, and possibly faces a stealer thereafter, who seeks to expropriate the...

This paper proposes a model of competition under asymmetric information to investigate whether firms have an incentive to share demand information with their competitors. The question naturally arises because the result that better information benefits a single-agent does not generalize to...

We investigate the role of networks of military alliances in preventing or encouraging wars between groups of countries. A country is vulnerable to attack if some allied group of countries can defeat the defending country and its (remaining) allies based on their collective military strengths....

Consumers often feel pressed for time, but why? This research provides a novel answer to this question: subjective perceptions of goal conflict. We show that beyond the number of goals competing for their time, perceived conflict between goals makes consumers feel that they have less time. Five...

Across five studies, this research reveals that feeling powerful increases saving. This effect is driven by the desire to maintain one's current state. When the purpose of saving is no longer to accumulate money, but to spend it on a status-related product, the basic effect is reversed and those...

We compare the performance of a comprehensive set of alternative peer identification schemes. Our results show the peer firms identified from aggregation of informed agents' revealed choices in Lee, Ma, and Wang (2014) perform best, followed by peers with the highest overlap in analyst coverage....

From 1980 to 2000, the rise in the U.S. college-high school graduate wage gap coincided with increased geographic sorting as college graduates concentrated in high wage, high rent cities. This paper estimates a structural spatial equilibrium model to determine causes and welfare consequences of...

Organization theory highlights the spread of norms of rationality in contemporary life. Yet rationality does not always spread without friction; individuals often act based on other beliefs and norms. We explore this problem in the context of restaurants and diners. We argue that consumers...

This article discusses the role of GAAP accounting from an investor's perspective. For all its flaws, a historical-based system of accounting is vital to the investment community, and I believe moves toward fair value accounting should proceed with great caution. Framing the discussion in terms...