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    2505 research outputs found

    Platform governance in the presence of within-complementor interdependencies: evidence from the rideshare industry

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    Existing studies suggest that platform access restrictions may cause restricted complementors to switch to competing platforms, which will increase complement quantity on competing platforms. We re-examine this prediction by accounting for the impact of economies of scope on complementor responses to platform access restriction. We argue that restricting a complementor’s access on a platform may prevent it from achieving economies of scope from multi-homing, thereby incentivizing it to abandon both the restricted and (unrestricted) competing platforms. Using rideshare data in New York City, we compare the numbers of trips made by Lyft and Uber drivers, respectively, before and after Lyft restricted drivers’ access on its platform. We find that Lyft’s access restriction reduced trip numbers not only on the Lyft platform but also on the Uber platform. In addition, both Lyft’s and Uber’s trip numbers decreased not only during the restricted low-demand periods (e.g., non-rush hours) but also during the unrestricted high-demand periods (e.g., rush hours). In contrast, after a substantial number of multi-homing drivers left both platforms following Lyft’s access restriction, a subsequent access restriction by Uber led to an increase in trip numbers on the Lyft platform. These results highlight the importance of accounting for interdependencies across complementor activities when designing platform governance policies

    Historizing the present: Research agenda and implications for consumer behavior

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    This paper conceptualizes the phenomenon of historizing the present, defined as emphasizing the historical significance of present events and treating the present from the perspective of history. The authors identify four modes of historizing the present (emphasizing that: (1) the present will shape history; (2) the present is a unique moment in history; (3) the present will be remembered in history; (4) the present echoes history) and demonstrate how historizing can be employed by marketers of for‐profit and nonprofit organizations in a variety of contexts. The paper examines the psychological implications of appreciating the historical significance of the present and outlines a research agenda for studying the downstream behavioral consequences of historizing the present across diverse substantive consumer domains. It concludes with an examination of the broader societal implications of historizing the present as well as its implications for consumer well‐being

    Motivated counterfactual thinking and moral inconsistency: how we use our imaginations to selectively condemn and condone

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    People selectively enforce their moral principles, excusing wrongdoing when it suits them. We identify an underappreciated source of this moral inconsistency: the ability to imagine counterfactuals, or alternatives to reality. Counterfactual thinking offers three sources of flexibility that people exploit to justify preferred moral conclusions: People can (a) generate counterfactuals with different content (e.g., consider how things could have been better or worse), (b) think about this content using different comparison processes (i.e., focus on how it is similar to or different than reality), and (c) give the result of these processes different weights (i.e., allow counterfactuals more or less influence on moral judgments). These sources of flexibility help people license unethical behavior and can fuel political conflict. Motivated reasoning may be less constrained by facts than previously assumed; people’s capacity to condemn and condone whom they wish may be limited only by their imaginations

    Playing the political game of innovation: An integrative framework and future research directions

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    Innovation politics impact the development and introduction of innovations, yet knowledge about the influence of specific political behavior or behavioral patterns remains blurred. Based on a literature review and the articles in this Special Issue, we propose a three-part framework that identifies the building blocks of political behavior in innovation: what motivates actors to be political, the different types of political actors, and the effect of various political behaviors on innovation outcomes. Emphasizing the evolving landscape of innovation politics, the framework aims to highlight research gaps and guide future studies toward improving our understanding of the functional and dysfunctional aspects of innovation politics

    TV Advertising and Online Sales: A Case Study of Intertemporal Substitution Effects for an Online Travel Platform

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    Digital technologies lead consumers to engage with companies online after they see TV ads, and firms increasingly wish to coordinate TV advertising in real time with online marketing activities. As a result, firms are keen to measure how TV advertising affects consumers' online behavior, but a key question is over what window of time to measure this effect. The standard industry practice of using short attribution windows around an ad to measure a causal effect may miss the possibility that consumer behavior shifts over time due to, for example, intertemporal substitution. We collaborate with an online travel platform and evaluate the results of a field test where part of the country was exposed to TV ads while another part of the country formed a control group. Using the synthetic difference-in-differences approach, we find TV advertising leads to an instantaneous increase in online browsing and sales. However, we also document evidence for intertemporal substitution: consumers appear to move their online activities forward in time in response to TV advertising, leading to lower browsing and lower sales at times when no ad is airing. We further explore the effects of TV advertising on channel choices, device choices and promotion usage and discuss the implications for advertisers and the ad-measurement industry

    Follow the Money

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    I study, both empirically and theoretically, the economic and financial consequences of corporate lobbying. Firms lobby politicians to increase their share of government contracts, but political competition creates firm-level risk, inflating their cost of capital and reducing their incentive to invest in research and development (R&D). I document an annual 6%–8% return premium for stocks of high-lobbying firms, which compensates investors for political risk. An estimated model in which firms can lobby and innovate and investors are risk averse replicates key features of corporate lobbying in the US, including the well-established paradox that lobbying contributions are small relative to the policies at stake. The model predicts that if investors ceased seeking compensation for political risk, R&D investment would increase by 6% and the innovation rate by 0.4 percentage points. The risk-premium costs of lobbying are quantitatively and economically important even if the resources “wasted” on lobbying are objectively small

    Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices

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    We use a high-frequency identification approach to document that individual politicians affect asset prices. We exploit the regular flow of viewpoints contained in Congress members’ tweets. Supportive (critical) tweets increase (decrease) the stock prices of the targeted firm and the corresponding industry in minutes around the tweet. The bulk of the stock price effects is concentrated in the tweets revealing news about future legislative action. The effects are amplified around committee meeting days, especially when the tweet originates from committee members and influential politicians. Overall, we show that Congress members’ social media accounts are an important source of political news. (JEL D72, G14

    Perceived Firm-Specific Human Capital: Mobility Constraint or Enhancer?

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    We explore the relationship between workers’ perceptions of firm-specific human capital (“FSHC”) and turnover. The belief that actual FSHC constrains mobility undergirds its critical role in resource-based theory. However, this rests on a strong assumption of information efficiency that market actors correctly assess how specific an individual’s skills are, and price it appropriately. Emerging theoretical viewpoints dispute this, pointing out labor market imperfections and substantial difficulty in observing FSHC. We therefore develop theory about how perceived FSHC may relate positively to mobility by articulating a role for well-known supply-side mechanisms such as job satisfaction, embeddedness and preference for job autonomy. Using two archival surveys and two primary surveys collected in very different contexts (South Korea and the U.S.), we found support for our theory. Perceptions of firm-specific human capital were associated with increased mobility and this effect was partially mediated by job satisfaction and job embeddedness. The effect was augmented for workers who value autonomy in their jobs (more likely to exit if they perceived their skills as FSHC). Since the effect of perceived FSHC is quite different from extant theory focused on actual FSHC, we explore implications for resource-based and human-capital theories

    Perilous and unaccountable: the positive relationship between dominance and moral hazard behaviors

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    Moral hazard involves a context where decision-makers engage in behaviors that prioritize self-interest while allowing the associated risk to be primarily borne by others. Such decision-making can lead to catastrophic consequences, as seen in the 2008 global financial crisis after hedge fund managers indiscriminately invested their clients’ money in subprime mortgages. This research examines which decision-makers are most likely to engage in moral hazard decision-making and the psychological mechanism driving this behavior. Drawing on the dual model of social influence, we posit that individuals associated with dominance, but not prestige, will engage in greater moral hazard behaviors. We further contend that these behaviors are driven by dominant decision-makers’ enhanced focus on end goals (outcomes) rather than the means (process) that they use to pursue such goals. We find support for our hypotheses across 13 studies (*NObservations* = 26,880; of which eight were pre-registered and six studies are reported in the Supplementary Information (SI)), using both correlational and experimental designs. Additionally, we vary the moral hazard context (e.g., a financial setting, a health and safety issue, etc.) and capture both behavioral intentions and actual behaviors, while also ruling out several alternative explanations. These findings demonstrate that dominant decision-makers engage in moral hazard behaviors because of their tendency to prioritize outcomes over processes

    Financial cycles with heterogeneous intermediaries

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    We develop a dynamic macroeconomic model with heterogeneous financial intermediaries and endogenous entry. Time-varying endogenous macroeconomic risk arises from the risk-shifting behaviour of the cross-section of financial intermediaries. When interest rates are high, a decrease in interest rates stimulates investment and decreases aggregate risk. In contrast, when they are low, further stimulus can increase financial instability while inducing a fall in the risk premium. In this case, there is a trade-off between stimulating the economy and financial stability. This provides a model of the risk-taking channel of monetary policy

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