Publications

We investigate a firm’s optimal product portfolio design on a Hotelling line that can affect consumers’ search decisions. Consumers form their perceptions of a brand from interactions with all products in the portfolio. We conceptualize the average location of the products as the brand position that represents the aggregate information about characteris- tics common to the product portfolio. Then, we propose a mechanism for why and how brand positioning induced by a firm’s product portfolio design can deliver credible infor- mation that guides consumer search. We show that niche positioning naturally conveys more information than mainstream positioning. A mainstream brand has incentives to opportunistically dilute its brand by offering a wide range of products. Even in a monopo- listic market, a niche brand positioning may arise as an equilibrium because it serves as a commitment device that prevents brand dilution

We propose a model of how multiple societies respond to a common crisis. A gov- ernment faces a “damned-either-way” policymaking dilemma: aggressive intervention contains the crisis, but the resulting good outcome makes people skeptical about the costly response; light intervention worsens the crisis and causes the government to be faulted for not doing enough. When multiple societies encounter the crisis sequentially, due to this policymaking dilemma, late societies may underperform despite having more information, while early societies can benefit from a dynamic counterfactual effect.

We study optimal monetary policy during temporary supply contractions when aggregate demand has inertia and the central bank is concerned about future constraints on expansionary policy. In this environment, it is optimal to run the economy hot until supply recovers. However, the policy does not remain loose throughout the low-supply phase. Overall, when the initial aggregate demand is low, the goal is to frontload the rate cuts to raise demand in anticipation of the recovery of supply. If inflation also has inertia, the central bank still overheats the economy during the low-supply phase but gradually cools it down over time.

While promotive voice is conventionally considered a favourable work behaviour to the organisation, whether engaging in promotive voice will help employees move up the career ladder is inconclusive across a handful of studies. Drawing on a psychological contract perspective, this study aims to understand why and when employees' promotive voice can contribute to supervisor‐rated employees' promotability. We propose that employees' engagement in promotive voice will strengthen supervisor‐sponsored balanced psychological contract with the employees and thus employees' promotability, and these effects will be stronger when the employees and supervisors have higher versus lower quality of leader‐member exchange (LMX) relationship. Results of a three‐wave field study with 281 employees and their 59 supervisors supported our hypotheses. We conclude by discussing the important implications of these findings for theory and practice.

We derive a new formula for the optimal uniform tariff in a small-country, heterogeneous-firm
model with a traded and a nontraded sector, and with roundabout production in both. Tariffs
are applied on the imported differentiated inputs in the traded sector, which are bundled with
domestic inputs to produce a nontraded finished good. First-best policy requires that markups
on domestic intermediate inputs are offset by subsidies. We compare the optimal second-best
tariff – when such subsidies are not used – to the first-best tariff from a one-sector, no roundabout
model. Under a wide range of parameter values the second-best import tariff is lower. In a 186-
country, 15-sector quantitative version of our model, the optimal uniform tariff has a median
value of 10% (7.5% for countries with above-median shares of manufacturing production), and
it is negative for five countries.

Ad targeting technology has enabled a highly personalized delivery of online ads. Behind this development is the belief that better targeting will lead to more relevant ads. This paper challenges this lay belief by showing that irrelevant advertising can arise not necessarily from technological imperfection but also from the incentive problem embedded in the ad agency-advertisers relationship. We first demonstrate that the ad agency serving multiple advertisers may strategically allocate an ad impression to a lesser-matched, sometimes totally irrelevant, niche advertiser because future impressions can match better with the mainstream advertiser. We further find that, without a contractual obligation to serve both advertisers, the agency may not deliver completely irrelevant ads to consumers. However, another type of inefficiency can arise where the agency may not send any ad to potentially interested consum- ers who have a strictly positive match probability with advertisers. These inefficiencies arise due to contractual restrictions, either contractual obligations or budget constraints, when the agency serves multiple advertisers. As such, we endogenize the advertisers’ contractual requirement choices and show how the contractual obligation(s) can arise in equilibrium. Finally, we show that irrelevant ads will not disappear simply because more impressions are available in the market. Our analysis suggests that as the number of impressions increases, the irrelevant ads can persist, but the probability of receiving irrelevant ads decreases.

Motivated by a collaboration with the San Francisco Unified School District (SFUSD), this paper presents an interactive optimization framework for addressing complex public policy problems. These problems suffer from a chicken-and-egg dilemma, where policymakers understand the objectives and constraints but lack the ability to solve them (“the optimization problem”), while researchers possess the necessary algorithms but lack the necessary insights into the policy context (“the policy problem”). Our framework addresses this challenge by combining three key elements: (1) an efficient optimization algorithm that can solve the problem given certain known objectives, (2) a method for generating a large set of diverse, near-optimal solutions, and (3) an interface that facilitates exploration of the solution space. We illustrate the effectiveness of this framework by applying it to the problem of improving school schedules at SFUSD. The resulting schedule, implemented in August 2021, saved the district over $5 million and, to our knowledge, represents the first successful optimization-driven school start time change in the United States.

While breastfeeding is recognized as providing optimal nutrition for infants and toddlers, maternal employment is a commonly mentioned barrier to breastfeeding. The goal was to (a) identify key actors participating in the design and implementation of workplace breastfeeding interventions in Mexico, (b) understand the complexity of interactions between the actors, and (c) map the connections and influence between the actors when looking into networks of Advice, Command, Funding, and Information.

Past research has found that employees who view themselves as overqualified for their jobs tend to hold negative job attitudes and be unwilling to go beyond the call of duty. In challenging situations such as during the COVID-19 crisis, when having “all hands-on deck” may be important to an organization’s survival, mitigating the negative tendencies of these employees becomes important. Adopting a sensemaking perspective on crisis management, we examine whether supervisors’ self-sacrificial leadership can mitigate these negative tendencies. First, we propose that employee perceived overqualification is associated with lower levels of felt obligation to the organization and thereby lower levels of extra-role behaviors (i.e., helping and proactivity). We next propose that supervisors’ self-sacrificial leadership during the COVID-19 crisis can evoke, especially when COVID-19 more strongly impacts the organization, a sense of collectivism toward the organization, which mitigates the negative association of perceived overqualification with felt obligation and thus extra-role behaviors. We tested our theorizing in samples from the UK (n = 121, Pilot Study) and US (n = 382, Main Study) in studies with a multi-wave, time-lagged design. Findings from both studies provide support for our theorizing. We discuss implications for research and practice concerning perceived overqualification during a crisis.

Low-income and Black households are less likely to visit bank branches than high-income and White households, despite the former two groups appearing to rely more on branches as means of bank participation. We assess whether unequal branch access can explain that disparity. We propose a measure of bank branch access based on a gravity model of consumer trips to bank branches, estimated using mobile device geolocation data. Residents have better branch access if branches are closer or have superior qualities that attract more visitors. Because the geolocation data is distorted to protect user privacy, we estimate the gravity model with a new econometric method that adapts the Method of Simulated Moments to handle high-dimensional fixed effects. We find no evidence that low-income communities lack access to bank branches and instead find that lower demand for bank branch products or services explains their lower branch use. But in Black communities, worse access explains their entire drop-off in branch use. For residents of these areas, weaker access is not from having lower quality branches, but from branches being located farther away from them. The results highlight parts of the country that would benefit the most from policies that expand access to banking.

We argue that deviations from the law of one price between futures and spot prices, known as futures-cash bases, capture important information about liquidity demand for equity market exposure in global markets. We show that bases (1) co-move with dealer and investor futures positions, (2) are contemporaneously positively correlated with spot and futures returns with the same sign, and (3) negatively predict futures and spot market returns with the same sign. These findings are consistent with a model where the futures-cash basis reflects liquidity de- mand that is common to futures and cash equity markets. We show persistent supply-demand imbalances for equity index exposure reflected in bases, where compensation for meeting that liquidity demand is large (5-6% annual premium).

The lack of diversity across gender and race of corporate boards has been one of the most significant issues in corporate board governance in recent years. Given the critical role that shareholders have in approving director appointments, we analyze voting patterns in director elections to investigate whether and how shareholders value board diversity. Using a broad sample of director elections from 2008 through 2018, we find evidence that shareholders provide greater voting support for diversity on boards, particularly gender diversity. Our findings also indicate greater additional support for diverse boards rather than for individual candidates. However, the magnitude of incremental voting support for diversity is small, and we find little evidence that the additional support is sufficient to affect voting outcomes. These findings persist over time and across key institutional shareholders who have been some of the most outspoken proponents of board diversity (i.e., SRI funds), questioning shareholders’ commitment to promoting board diversity.

While a positive view of calling has been ubiquitous since its introduction into the literature over two decades ago, research remains unsettled about the extent to which it contributes to various aspects of the good life: an optimal way of living well via worthwhile endeavors. Further, scholars have identified two conceptual types of calling, marked by internal versus external foci; yet their differential impact on outcomes indicative of the good life, such as eudaimonic and hedonic well-being (characterized by the experience of purpose and meaning versus pleasure and happiness, respectively), is unknown. Through a meta-analysis of 201 studies, we provide the first systematic review focused on these two fundamental theoretical issues in the calling literature: how strongly related callings are to outcomes in the domains of work and life and which type of calling (internally or externally focused) more strongly predicts these outcomes, if either. We find that callings more strongly relate to outcomes indicative of the good life than recently argued. We further find that callings are more strongly linked to work than to life outcomes and to eudaimonic than to hedonic outcomes. The two types of calling converge in being associated with many similar outcomes, but they show some divergence: internally focused callings are more positively related to hedonic outcomes and less positively related to eudaimonic outcomes, relative to externally focused callings. This finding supports a view of callings as hierarchically structured, with a higher-order calling factor composed of two correlated yet distinct lower-order calling types. Integrating our meta-analytic findings with relevant literatures, we propose a theoretical model that addresses psychological and social need fulfillment through which different types of callings contribute to the good life.

We document the rise of China in offshore capital markets. Chinese firms use global tax havens to access foreign capital both in equity and bond markets. In the last twenty years, China’s presence went from raising a negligible amount of capital in these markets to accounting for more than half of equity issuance and around a fifth of global corporate bonds outstanding in tax havens. Using rich micro data, we show that a range of Chinese firms, including both tech giants and SOEs, use these offshore centers. We conclude by discussing the macroeconomic and financial stability implications of these patterns.

When a romantic relationship becomes serious, partners often confront a foundational decision about how to organize their personal finances: pool money together or keep things separate? In a six-wave longitudinal experiment, we investigated whether randomly assigning engaged or newlywed couples to merge their money in a joint bank account increases relationship quality over time. Whereas couples assigned to keep their money in separate accounts or to a no-intervention condition exhibited the normative decline in relationship quality across the first 2 years of marriage, couples assigned to merge money in a joint account sustained strong relationship quality throughout. The effect of bank account structure on relationship quality is multiply determined. We examine—and find support for—three potential mechanisms using both experimental and correlational methods: merging finances (1) improves how partners feel about how they handle money, (2) promotes financial goal alignment, and (3) sustains communal norm adherence (e.g., responding to each other’s needs without expectations of reciprocity). While prior research has documented a correlation between financial interdependence and relationship quality, our research offers the first experimental evidence that increasing financial interdependence helps newlyweds preserve stronger relationship quality throughout the newlywed period and potentially beyond.