Price matching has become a ubiquitous strategy for retailers both in product and service industries, especially with the growing ease of checking prices online. With this strategy, retailers promise not to be undersold and match competitor's lower price (if any). Price-sensitive consumers tend...

The standard statistical framework for evaluating investment risk and performance breaks down in the presence of modern quantitative investment strategies. In this paper, we illustrate the problematic nature of applying a 95% confidence level to algorithmic trading models. We introduce an...

In this paper, I study dynamic and sequential fair division problems for players with dichotomous preferences. I have devised a systematic approach of designing efficient, envy-free, and strategy-proof mechanisms for generic problems. The mechanisms developed in this paper can accommodate common...

In today's era of the ubiquitous use of information technology (IT), it is expected that the information systems provide services to end-users on continuous basis, regardless of time and location. This is especially true in organizations where information systems (IS) support real-time critical...

In this paper we use a novel approach to address issues of endogeneity in estimating a causal effect of leverage on risk taking by banks. Using data on local bank office deposits and local unemployment we construct an instrument to use in a regression of leverage on a measure of risk taking...

Capital reallocation is procyclical, despite measured productive reallocative opportunities being acyclical or even countercyclical. This article reviews the advances in the literature studying the causes and consequences of capital reallocation (or lack thereof). We provide a comprehensive set...

In recent years, there has been a resurgence of research on the transmission of monetary policy through the financial system, fueled in part by empirical findings showing that monetary policy affects asset prices and the financial system in ways not explained by the New Keynesian paradigm. In...

This article reviews the predictability evidence on the variance risk premium: ( a) It predicts significant positive risk premia across equity, bond, currency, and credit markets; ( b) the predictability peaks at few-month horizons and dies out afterward; ( c) such a short-run predictability is...

Investor sentiment indicates how far an asset value deviates from its economic fundamentals. In this article, we review various measures of investor sentiment based on market, survey, and text and media data. There is ample evidence that sentiment can explain returns on stocks that are difficult...