Publications

The Freemium business model, commonly used in digital products, has both a perpetually free but limited version and a premium version with enhanced features that requires a fee. These firms often have a referral program in which current customers get additional benefits (e.g., extra storage space) for referring friends to the firm. While this strategy allows a firm to acquire large user base at low cost, it needs to be balanced against revenue, and we examine how attractive a referral offer should be in order to encourage users to bring in new customers without dissuading them from upgrading. Since the majority of freemium customers are “free,” i.e. they do not pay, it is crucial to understand their long run value, which results from their future upgrades or upgrades by those they refer. We develop an empirical model from microfoundations, including both discrete and continuous choices, and investigate the dynamics of consumers’ plan choice, usage, and referral behavior using a novel panel data set from a leading cloud-based storage service. Using counterfactual analysis, we determine the optimal balance of growth and monetization, and quantify the value of free customers.

The Fondaco dei Tedeschi, located near Venice’s Rialto Bridge, has served various roles over its 800-year history, from a key trading hub for German merchants to the headquarters of Italy’s postal system. In the 2000s, the Benetton family purchased the building and embarked on a significant renovation to transform it into an upscale mall, envisioning it as a shopping destination for Venice's millions of tourists. Renowned architect Rem Koolhaas and OMA were tasked with the renovation, which included installing modern conveniences like escalators and opening the roof to visitors.

Operating the Fondaco as an upscale mall presented multiple challenges. The Benetton family had to navigate local opposition concerned about the shift of a historic public building to private use, and address doubts about turning it into a commercial venue. Achieving a balance between preserving the historical aesthetics and incorporating contemporary retail requirements was complex, as was ensuring visitors felt welcome even if they were not intending to make high-end purchases. The operational viability hinged on attracting sufficient tourist foot traffic and converting these visitors into paying customers. As DFS, a subsidiary of LVHM, took on the management, the key questions revolved around stocking the mall with the right mix of goods, ensuring consistent tourist traffic, and maintaining economic viability.

This book provides a multinational history of German reunification based on empirical work by leading scholars.

The reunification of Germany in 1989-90 was one of the most unexpected and momentous events of the twentieth century. Embedded within the wider process of the end of the Cold War, it contributed decisively to the dramatic changes that followed: the end of the division of Europe, the collapse of the Warsaw Pact, the origins of NATO’s eastward expansion and, not least, the creation of the European Union. Based on the wealth of evidence that has become available from many countries involved, and relying on the most recent historiography, this collection takes into account the complex interaction of multinational processes that were instrumental in shaping German reunification in the pivotal years 1989-90. The volume brings together renowned international scholars whose recent works, based on their research in multiple languages and sources, have contributed significantly to the history of the end of the Cold War and of German reunification. The resulting volume represents an important contribution to our knowledge and understanding of a significant chapter in recent history.

This paper demonstrates a new agency channel through which payout taxation affects corporate investment. Lower payout taxes increase managers' cash flow right to the firm via managerial ownership, which further aligns shareholder-manager incentives but exacerbates managerial risk exposures to the firm. I develop a framework to test this channel and provide supporting evidence using a setting of innovation investments around the 2003 Dividend Tax Cut. Aligning incentives stimulates the innovation input and output. Aggravated managerial risk aversion impedes innovation quantity and also shifts innovation to safer and more incremental directions. I also explore underlying operational channels and interactive mechanisms.