This paper provides a model that uses preference heterogeneity to rationalize the cross-sectional and intertemporal variation in a firm's product proliferation strategies. Product-line dynamics arise from shocks to preference heterogeneity. For example, in the potato chip category I study,...

Success breeds success in many mass market industries, as well known products gain further consumer acceptance because of their visibility. However, new products must struggle to gain consumer's scarce attention and initiate that virtuous cycle. The newest mass market industry, mobile apps, has...

With the application of dynamic spatial panel model under China's decentralization framework, this paper elaborates the impacts of the “horizontal strategic interaction” among local governments, as well as the “vertical common reaction” between central and local governments, on the...

In user-generated content (UGC) platforms, content generators (i.e., posters) account for only a minority of users. The majority of users lurk, participating in information diffusion only (i.e., diffusers) and making no direct contributions to the platforms. In this paper, we study diffusers'...

Motivated by the prevalence of economic targets at all levels of territory administration in China, this paper proposes a Tullock contest model to study optimal target setting in a multi-layered tournament-based organization. In our model, targets are used by upper-level official to convey the...

This study investigates the association between the quality of the entire workforces and corporate investment efficiency. We find that the superior internal information generated and collected by high quality employees can enhance managerial investment efficiency. This association is more...