Other Business Commons^™

How Apis Create Growth By Inverting The Firm, Seth G. Benzell, Jonathan Hersh, Marshall Van Alstyne

Economics Faculty Articles and Research

Traditional asset management strategy has emphasized building barriers to entry or closely guarding unique assets to maintain a firm’s comparative advantage. A new “Inverted Firm” paradigm, however, has emerged. Under this strategy, firms share data seeking to become platforms by opening digital services to third-parties and capturing part of their external surplus. This contrasts with a “pipeline” strategy where the firm itself creates value. This paper quantitatively estimates the effect of adopting an inverted firm strategy through the lens of Application Programming Interfaces (APIs), a key enabling technology. Using both public data and that of a private API development firm, …

The Economics Of Residential Solar Panels: A Comparison Of Energy Charges For Different Load Profiles, Rate Plans, And Panel Orientations, John B. Broughton, Candace E. Ybarra, Prashanth U. Nyer

Business Faculty Articles and Research

This paper examines the effect of different residential electrical load profiles (electrical energy consumption patterns within a day) on energy charges for customers with solar panels under different Southern California Edison time-of-use (TOU) rate plans. We identify the TOU plan which would be the most cost effective for solar customers with each load profile. The impact of the orientation of the solar panel array (whether it faces south or west or east) and shading patterns on electricity charges are examined. We also determine the ideal usage offset (the percentage of electricity consumption provided by the solar array) for the various …

Privacy Considerations For Online Advertising: A Stakeholder’S Perspective To Programmatic Advertising, Dylan A. Cooper, Taylan Yalcin, Cristina Nistor, Matthew Macrini, Ekin Pehlivan

Business Faculty Articles and Research

Purpose

Privacy considerations have become a topic with increasing interest from academics, industry leaders and regulators. In response to consumers’ privacy concerns, Google announced in 2020 that Chrome would stop supporting third-party cookies in the near future. At the same time, advertising technology companies are developing alternative solutions for online targeting and consumer privacy controls. This paper aims to explore privacy considerations related to online tracking and targeting methods used for programmatic advertising (i.e. third-party cookies, Privacy Sandbox, Unified ID 2.0) for a variety of stakeholders: consumers, AdTech platforms, advertisers and publishers.

Design/methodology/approach

This study analyzes the topic of internet …

Preface And Introduction To Generation A: Research On Autism In The Workplace, Cristina M. Giannantonio, Amy E. Hurley-Hanson

Business Faculty Books and Book Chapters

No abstract provided.

Developing Strong Transition-Focused Ieps Using Labour Market Data, Amy Jane Griffiths, Meghan E. Cosier, Rachel Wiegand, Sneha Kohli Mathur, Sara Morgan

Education Faculty Articles and Research

Employment rates and post-school transition outcomes for individuals with disabilities remain alarmingly low compared to peers without disabilities. Transition-Focused Individualized Education Plans (TF-IEPs) often centre on skills associated with employment experience opportunities that are immediately available to the individual with a disability. While the transition plans focus on the student's strengths and areas of interest, less attention is paid to the guidance and support a student might need in choosing a sustainable career. We contend that teams must develop transition plans with specific attention to projected labour market data. Using this information will ensure that we are preparing students with …

The Economics Of Residential Solar And Battery Storage: Analyzing The Impact Of The Joint Iou Proposal For Net Metering 3.0 In California, Candace E. Ybarra, Prashanth U. Nyer, John B. Broughton, Thomas A. Turk

Business Faculty Articles and Research

The California Public Utilities Commission (CPUC) is currently deciding on the structure of the next net metering program, which will determine how customers who install solar panels (and battery storage) under this new program will be compensated for excess energy that they export to the grid, and the additional fees that these solar customers will have to pay. The major investor-owned utility (IOU) companies in the state and some legislators have argued that the current net metering programs are far too generous to the customers and that they create an inequity by favoring the wealthy and causing a cost shift …

The Efficiency Of U.S. Public Space Utilization During The Covid-19 Pandemic, Seth G. Benzell, Avinash Collis, Christos Nicolaides

Economics Faculty Articles and Research

The COVID-19 pandemic has called for and generated massive novel government regulations to increase social distancing for the purpose of reducing disease transmission. A number of studies have attempted to guide and measure the effectiveness of these policies, but there has been less focus on the overall efficiency of these policies. Efficient social distancing requires implementing stricter restrictions during periods of high viral prevalence and rationing social contact to disproportionately preserve gatherings that produce a good ratio of benefits to transmission risk. To evaluate whether U.S. social distancing policy actually produced an efficient social distancing regime, we tracked consumer preferences …

The Economics Of Battery Storage For Residential Solar Customers In Southern California, John B. Broughton, Prashanth U. Nyer, Candace E. Ybarra

Business Faculty Articles and Research

Battery storage coupled with solar panels became a consideration after the original net metering program in California (NEM 1.0) ended and gave way to the current net metering program (NEM 2.0). Under NEM 2.0, battery storage gives customers under time-of-use (TOU) rate plans the ability to store the excess electrical energy generated by their panels during sunlight hours (when electricity usage and resale rates are low) and then use that energy in the evening when rates are significantly higher. This reduces the amount of expensive electricity that the customer would have to purchase from the grid. It is widely expected …

Refugees/Displaced People In The Workplace, Sharon L. Segrest, Amy E. Hurley-Hanson, Cristina M. Giannantonio

Business Faculty Articles and Research

No abstract provided.

Intro To This Special Issue: Refugees/Displaced People In The Workplace, Sharon L. Segrest, Amy E. Hurley-Hanson, Cristina M. Giannantonio

Business Faculty Articles and Research

This special issue focuses on refugees’ experiences and displaced people across a diverse set of ethnicities and circumstances. The growing number of refugees and displaced people and the work and life difficulties they face are central social issues in the world today. This special issue will explore how refugees and displaced people in Brazil can be fully integrated, socialized, engaged, embraced, and affirmed into the workplace and society. Research is presented on the experiences of refugees and displaced people, a growing but under-researched segment of the world’s population. Little is known about refugees’ career experiences and displaced people and how …

Lady Luck: Anthropomorphized Luck Creates Perceptions Of Risk-Sharing And Drives Pursuit Of Risky Alternatives, Katina Kulow, Thomas Kramer, Kara Bentley

Business Faculty Articles and Research

We examine decision-making under risk as a function of the degree to which consumers anthropomorphize their luck. We propose that consumers make riskier financial decisions when they anthropomorphize (vs. objectify) their luck and that this effect occurs because humanizing luck engenders a perceived sharing of risk in the presence of “lady luck.” A series of experiments shows that consumers among whom anthropomorphized versus objectified luck is salient display greater risk-taking in financial, but not social, decisions. These effects are heightened among consumers who frequently engage in risky decision-making and are driven by perceptions of risk-sharing produced by anthropomorphized luck. Collectively, …

Do Large Gains Make Willing Sellers?, Dong Hong, Roger K. Loh, Mitch Warachka

Business Faculty Articles and Research

Using unique real estate data that allow for accurately measured capital gains, we examine whether sell propensities depend on the magnitude of a seller’s capital gain. We find that short-term sell propensities are flat over losses and increasing in gains. Consistent with their higher sell propensities, selling prices are lower for properties with larger gains. Large-sized short-term stock investments also have sell propensities that are flat over losses and increasing in gains, although the sell propensities of typical-sized short-term stock investments are V-shaped. Our findings provide empirical support for theories of realization utility.

When The Weak Are Mighty: A Two‐Sided Matching Approach To Alliance Performance, Darcy Fudge Kamal, Florence Honoré, Cristina Nistor

Business Faculty Articles and Research

Research Summary

Network centrality is an important determinant of alliance performance. However, estimating how each alliance member's centrality affects alliance performance is challenging because the end market might value each partner's contribution differently. We solve this empirical question with a two‐sided matching model that accounts for the partners' endogenous selection and estimates the effect of each side's centrality and input quality on performance. We implement the method in the novel context of the Thoroughbred horse industry, in foal‐sharing alliances between buyers and suppliers. We find that buyer centrality has a larger marginal effect on the alliance performance than the supplier …

The Night And Day Of Amihud’S (2002) Liquidity Measure, Yashar H. Barardehi, Dan Bernhardt, Thomas G. Ruchti, Marc Weidenmier

Business Faculty Articles and Research

Amihud’s stock (il)liquidity measure averages daily ratios of the absolute close-to-close return to dollar volume, including overnight returns. Our modified measure uses open-to-close returns matching return and trading volume measurement windows. It is more strongly correlated with trading-cost measures (by 8%–37%) and better explains cross-sections of returns, doubling estimated liquidity premiums. Using nonsynchronous trading near close, we show overnight returns are primarily information driven: including them in Amihud’s proxy for price impacts of trading magnifies measurement error, understating liquidity premiums. Our modification helps wherever Amihud’s measure is required. Our measures are publicly available for 1964–2019 and can be updated. ( …

Together We Stand: The Solidarity Effect Of Personized Sellers On Essential Workers, Katina Kulow, Kara Bentley, Priyali Rajagopal

Business Faculty Articles and Research

The current research examines how products from personized sellers operate as a source of social support and solidarity for essential workers who are experiencing elevated levels of occupational stress since the advent of COVID-19. A series of experiments show that consumers who view themselves as essential workers prefer products from personized sellers (e.g., Etsy) compared to nonpersonized sellers (e.g., Amazon). These effects are driven by higher feelings of solidarity made salient by the personized seller. Our findings document a novel way by which consumers who are experiencing significantly high levels of occupational stress during the COVID-19 pandemic may seek social …

The Dark Side Of Executive Compensation Duration: Evidence From Mergers And Acquisitions, Zhi Li, Qiyuan Peng

Business Faculty Articles and Research

We find that contrary to popular belief, CEOs with long compensation duration do not make better long-term investment decisions. Using a comprehensive pay duration measure, we find that acquisitions conducted by CEOs with long compensation duration receive more negative announcement returns, and experience significantly worse post-acquisition abnormal operating and stock performance, compared with deals conducted by CEOs with short compensation duration. The negative correlation between compensation duration and mergers and acquisitions (M&A) performance is driven by long-term time-vesting plans, not by performance-vesting plans. The results suggest that extending CEO pay horizons without implementing performance requirements is insufficient to improve managerial …

Technology Transfer In Spatial Competition When Licensees Are Asymmetric, Sougata Poddar, Swapnendu Banerjee, Monalisa Ghosh

Economics Faculty Articles and Research

We study technology transfer in a spatial competition with two asymmetric licensees (firms) with an outside innovator who decides how many licenses to offer and the optimal licensing contract. We show the optimal licensing policy is pure royalty contract to both licensees leading to a complete diffusion of the new technology. The result holds irrespective of the cost differentials between the licensees and for innovation of all sizes, that is, drastic or non‐drastic. This robust finding although supports the dominance of royalty licensing in practice; however, consumers may not be necessarily better off. We also throw light on the situation …

Banking On Belgrade: Nixon’S Foreign Aid Policy With Yugoslavia (1970-1974), Robert 'Bo' Kent

Voces Novae

One of the Nixon Administration’s geopolitical innovations was its willingness to collaborate with communist regimes in order to advance mutual interests. This was demonstrated notably in the Balkans, wherein American policy makers furnished aid to the independent socialist state of Yugoslavia to counter Soviet interests in the region.

Rationing Social Contact During The Covid-19 Pandemic: Transmission Risk And Social Benefits Of Us Locations, Seth G. Benzell, Avinash Collis, Christos Nicolaides

Economics Faculty Articles and Research

To prevent the spread of coronavirus disease 2019 (COVID-19), some types of public spaces have been shut down while others remain open. These decisions constitute a judgment about the relative danger and benefits of those locations. Using mobility data from a large sample of smartphones, nationally representative consumer preference surveys, and economic statistics, we measure the relative transmission reduction benefit and social cost of closing 26 categories of US locations. Our categories include types of shops, entertainments, and service providers. We rank categories by their trade-off of social benefits and transmission risk via dominance across 13 dimensions of risk and …

Antecedents To Buyer-Supplier Coordination In The Pharmaceutical Supply Chain, Thanigavelan Jambulingam, Ravi Kathuria

Business Faculty Articles and Research

Purpose

The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework.

Design/methodology/approach

Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses.

Findings

The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic.

Research limitations/implications

Future research may investigate additional antecedents using other theoretical lenses. …

The Economics Of Residential Solar Panels: Comparing Tiered And Time Of Use Plans, Prashanth Nyer, Candace Ybarra, Jack B. Broughton

Business Faculty Articles and Research

This case study uses data from a Southern California Edison residential customer on a grandfathered tiered rate plan to investigate 1) whether it is economically beneficial for the customer to switch from a tiered-rate plan to a Time-of-Use (TOU) plan, 2) whether going solar now makes financial sense for new solar customers, 3) what level of usage offset (the percentage of the customer’s annual electricity consumption that is provided by the solar panels) would result in the maximum financial benefit for the customer under each of the many TOU plans, and 4) whether solar customers on TOU plans can save …

How Social Media Communications Can Mitigate Negative Impacts Of Corporate Social Irresponsibility On Corporate Financial Performance?, Saad A. Alhoqail, Hyun Young Cho, Kristopher Floyd

Business Faculty Articles and Research

Previous research on corporate social responsibility (CSR) has focused on corporate reputation (CR) and corporate financial performance (CFP), showing a high correlation between both. While most researchers primarily focus on CSR, our research examines the other side of the coin; corporate social irresponsibility (CSI) and provides findings that counter previous thought. We contribute to the existing literature by showing that CSI has a non-significant impact on corporate financial performance, as measured by market value, while concurrently being negatively correlated to corporate reputation. Further, we show social media, as measured by the Social Media Sustainability Index (SMSI), a measure studied infrequently …

Short- And Medium-Term Car Registration Forecasting Based On Selected Macro And Socio-Economic Indicators In European Countries, Lubor Homolka, Vu Minh Ngo, Drahomíra Pavelková, Bach Tuan Le, Bruce Dehning

Accounting Faculty Articles and Research

The automotive industry plays a key role in the European economy. In this paper, we determine which macro and socio-economic indicators have significant predictive power on car registrations - a proxy to automotive sector performance - across European countries. Contrary to the current literature which mainly focuses on long-term forecasting, we built our models on the highly seasonal monthly data of a medium-term period to make short-term forecasts. Our approach utilises predictors identified by the literature review. Presented models are built on the Vector Autoregressive models and are accompanied by formal tests, such as the Granger causality test. We have …

Technology Licensing And Innovation – A Correction On Two-Part Tariff Analysis, Yuanzhu Lu, Swapnendu Banerjee, Sougata Poddar

Economics Faculty Articles and Research

The main purpose of this note is two-fold: (i) Correcting an error in the two-part tariff licensing contract, and (ii) Altering one of the main results following the two-part tariff analysis in Mukherjee and Mukherjee (2013). This also strengthens the primary conclusion of Mukherjee and Mukherjee (2013).

Establishing Cryptocurrency Equilibria Through Game Theory, Carey Caginalp, Gunduz Caginalp

ESI Publications

We utilize optimization methods to determine equilibria of cryptocurrencies. A core group, the wealthy, fears the loss of assets that can be seized by a government. Volatility may be influenced by speculators. The wealthy must divide their assets between the home currency and the cryptocurrency, while the government decides the probability of seizing a fraction the assets of this group. We establish conditions for existence and uniqueness of Nash equilibria. Also examined is the separate timescale problem in which the government policy cannot be reversed, while the wealthy can adjust their allocation in reaction to the government’s designation of probability.

Dynamic Pricing With Fairness Concerns And A Capacity Constraint, Matthew Selove

Business Faculty Articles and Research

Although some firms use dynamic pricing to respond to demand fluctuations, other firms claim that fairness concerns prevent them from raising prices during periods when demand exceeds capacity. This paper explores conditions in which fairness concerns can or cannot cause shortages. In our model, a firm announces a price policy that states its prices during high and low demand, and customers must travel to a venue to learn the current price. We show that the interaction of fairness concerns with travel costs can cause the firm to set stable prices, which leads to shortages during high demand. However, if the …

Corporate Entrepreneurship In The Digital Era: The Cascading Effect Through Operations, Maheshkumar P. Joshi, Ravi Kathuria, Sidhartha Das

Business Faculty Articles and Research

This study examines a firm’s response to perceived changes in the environment, such as the growth of the digital era, at different levels of a firm—beginning with the adoption of corporate entrepreneurship (CE) down to process renewal (PR). We further explore if the technological intensity of a firm, high-tech or low-tech intensity, influences its choice of mode for organisational renewal (OR)—use of internal competence or outside acquisition—to exploit the opportunities created by the digital era. Using survey data from 170 firms, we test a sequential relationship among environmental changes (growth of the digital era), CE, OR and finally PR that …

Ideological Diversity In Standard Setting, Jivas Chakravarthy

Accounting Faculty Articles and Research

I explore whether the level of ideological diversity among Financial Accounting Standards Board (FASB) members has declined since the emergence of their conceptual framework. I analyze votes made by FASB members on Statements of Financial Accounting Standards and compare them to comment letters submitted by constituent sponsoring organizations. I demonstrate that, relative to the Pre-CF regime (1973–1986), FASB members’ voting positions in the CF regime (1987–2007) are (i) less like their constituent sponsors and (ii) more like one another. The former result is primarily attributable to differences between FASB members with auditor and preparer backgrounds and those groups’ sponsors. Both …

Unrequited: Asymmetry In Interorganizational Trust, Melissa E. Graebner, Fabrice Lumineau, Darcy Fudge Kamal

Business Faculty Articles and Research

Many studies of interorganizational relationships assume that trust between organizations is symmetric. In this essay, we explore the origins of this assumption and examine relevant quantitative and qualitative evidence from the literatures on strategy, marketing, supply chain management, and information systems. We conclude that no systematic evidence currently exists to support the assumption that interorganizational trust is typically symmetric. We explore how the possibility of asymmetry complicates interpretation of previous research on the effects of interorganizational trust. We encourage further research to identify conditions under which symmetry is likely, and offer a variety of strategies that scholars may use to …

Unrequited: Asymmetry In Interorganizational Trust, Melissa E. Graebner, Fabrice Lumineau, Darcy Fudge Kamal

Business Faculty Articles and Research

Many studies of interorganizational relationships assume that trust between organizations is symmetric. In this essay, we explore the origins of this assumption and examine relevant quantitative and qualitative evidence from the literatures on strategy, marketing, supply chain management, and information systems. We conclude that no systematic evidence currently exists to support the assumption that interorganizational trust is typically symmetric. We explore how the possibility of asymmetry complicates interpretation of previous research on the effects of interorganizational trust. We encourage further research to identify conditions under which symmetry is likely, and offer a variety of strategies that scholars may use to …