Knowledge that Transforms

Previous articleNext article FreeRecent RefereesPDFPDF PLUSFull Text Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinked InRedditEmailQR Code SectionsMoreJournal of Political Economy acknowledges the assistance of:Rolf AabergeJason AbaluckEliot AbramsDouglas AlmondIsaiah AndrewsCharles AngelucciPeter ArcidiaconoGaurab AryalKentaro AsaiDavid AutorRuediger BachmannAlexander BartikMarco BattagliniSamuel BazziDaniel BenjaminMartin BerajaDavid BergerJohn BeshearsPrashant BharadwajAlberto BisinSimon BoardCatherine BobtcheffAlessandro BonattiStephane BonhommeLoren BrandtR. BraunJeremy BulowSteven CallanderDavid CesariniEric ChaneySteve CicalaAntonio CicconeJeffrey ClemensJohn CochraneAllan Collard-WexlerMarco CosconatiErnesto Dal BoRebecca DiamondTaryn DinkelmanSimeon DjankovCarlos DobkinDavid DranoveOeindrila DubePascaline DupasRuben DuranteAlex EblePhilipp EisenhauerFabian EserItay FainmesserTimothy FeddersenShuaizhang FengAmy FinkelsteinRaymond FismanChristopher FooteMarco FrancesconiChao FuWilliam FuchsXavier GabaixManolis GalenianosAndrea GaleottiSebastian GalianiAlfred GalichonJorge Garcia-MenendezPieter GautierEdward GlaeserBenjamin GolubYuriy GorodnichenkoDaniel GottliebFrancois GourioMarina HalacWilliam HanlonGlenn HarrisonBard HarstadTarek HassanBenjamin HebertAndrew HoRichard HornbeckThomas HubbardJohn Eric HumphriesBrian JacobSeema JayachandranPhilippe JehielAmir JinaMichael JohannesDamon JonesLeo KaasLouis KaplowLoukas KarabarbounisAnil KashyapRyan KelloggLutz KilianHenrik KlevenPatrick KlineBrian KnightFuhito KojimaWojciech KopczukAmanda KowalskiMichael KrauseDiana KrugerEliana La FerraraDavid LagakosKevin LangMartin LettauRoss LevineArthur LewbelGregory LewisQi LiShengwu LiElliot LipnowskiAlessandro LizzeriXiang MaBrigitte MadrianDaniel MartinYusufcan MasatliogluFilip MatejkaMichael MazzeoDavid McKenzieRobert McMillanXin MengIgnacia MercadalOmer MoavMelanie MortenPetra MoserAndreas MoxnesRoger MyersonRamana NandaEric NielsenMatthew NotowidigdoNathan NunnPietro OrtolevaGerard Padro i MiquelThomas PalfreyStavros PanageasElias PapaioannouLoriana PelizzonKrishna PendakurGiovanni PeriNicola PersicoPetra PerssonWolfgang PesendorferMaria PetrovaIvan PngDevin PopeAndrea PratVincenzo QuadriniRodney RamcharanJoao RamosHillel RapoportAlex Rees-JonesJean-Marc RobinJames RobinsonChristian RoesslerJesse RothsteinNicholas RyanStephen RyanBruce SacerdoteYuval SalantNorbert SchadyWolfram SchlenkerLukas SchmidAntoinette SchoarDaniel SchunkKarl SchurterJoshua SchwartzsteinBradley SetzlerBradley ShapiroJoseph ShapiroMatthew ShumBernardo SilveiraCharles SprengerSascha SteffenJakub SteinerJon SteinssonJohannes StroebelChristopher TaberSatoru TakahashiEvan TaylorAlexander TeytelboymPhilipp TillmannPetra ToddFrancesco TrebbiUgo TroianoMarta Troya MartinezViktor TsyrennikovUtku UnverWinnie van DijkJohn Van ReenenVenky VenkateswaranMiguel Villas-BoasAnnette Vissing-JorgensenAlessandra VoenaJoel WaldfogelReed WalkerAndrea WeberRebecca Weitz-ShapiroBirger WernerfeltMatthew WiswallAlexander WolitzkyNoam YuchtmanGabriel ZucmanEric Zwick Previous articleNext article DetailsFiguresReferencesCited by Journal of Political Economy Volume 126, Number 2April 2018 Article DOIhttps://doi.org/10.1086/698129 © 2018 by The University of Chicago. All rights reserved.PDF download Crossref reports no articles citing this article.

Previous articleNext article FreeRecent RefereesPDFPDF PLUSFull Text Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinked InRedditEmailQR Code SectionsMoreJournal of Political Economy acknowledges the assistance of:Brant AbbottRan AbramitzkyRodrigo AdaoNikhil AgarwalTreb AllenDouglas AlmondIsaiah AndrewsPeter ArcidiaconoEnghin AtalayAdrien AuclertNed AugenblickEduardo AzevedoLinda BabcockMarco BattagliniVivek BhattacharyaSourav BhattacharyaAlberto BisinDan BlackHenning BohnLaurent BoutonBen BrooksMarshall BurkeLeonardo BursztynSteven CallanderNicolas Castro CienfuegosDavid CesariniPierre-Andre ChiapporiEugene ChooGregory ClarkJohn CochraneDean CorbaeThomas CovertJacques CraemerErnesto Dal BoBrendan DaleyLucas DavisDamien De WalqueMark DeanManasi DeshpandeDouglas DiamondRebecca DiamondMichael DinersteinJonathan DingelJeremiah DittmarWill DobbieDave DonaldsonUlrich DoraszelskiPierre DuboisGeorgy EgorovAlon EizenbergBenjamin EnkeDennis EppleChristine ExleyPablo FajgelbaumArmin FalkRobert FeenstraAmy FinkelsteinRaymond FismanMarco FrancesconiBrigham FrandsenEric FrenchChao FuDrew FudenbergThomas FujiwaraManolis GalenianosCecile GaubertAndrew Goodman-BaconDavid GreenMatthew GrennanAdam GurenRong HaiJessie HandburyEric HanushekBard HarstadTarek HassanNathaniel HendrenRichard HoldenElisabeth HonkaMatteo IacovielloMurat IyigunKelsey JackSaumitra JhaCharles JonesDamon JonesJohn KennanPhilipp KircherNobuhiro KiyotakiPatrick KlineNarayana KocherlakotaRachel KrantonIlan KremerVijay KrishnaZoe KuehnEliana La FerraraNicola LaceteraDavid LagakosRicardo LagosRasmus LandersoeVictor LavyRobin LeeTracy LewisHaizhen LinMatthew LindquistBarton LipmanCorinne LowFernando LucoLilia MaliarDavid MalisonGustavo MansoErin MansurGiovanni MastrobuoniBhashkar MazumderMaurizio MazzoccoDavid McKenzieBruce MeyerVirgiliu MidriganEdward MiguelAhmed MobarakJoao MontezMelanie MortenCharles MurryCaitlin MyersDerek NealDavid NeumarkVolker NockeMasao OgakiPaulina OlivaPaul OyerBerk OzlerYoungmin ParkMario PascoaEduardo Perez-RichetRicardo Perez-TrugliaWolfgang PesendorferJose-Luis PeydroMassimiliano PisaniTomasz PiskorskiDevin PopeDrazen PrelecDavid RahmanSharon RameySteven RaphaelMartin RavallionAlex Rees-JonesM. RehaviPhilip RenyJose Rios-RullJames RobertsAriel RubinsteinThomas RuchtiMarc RysmanLawrence SchmidtMehdi ShadmehrJacob ShapiroRon SiegelEric SimsHoward SmithPaulo SomainiDavid StrombergChris SwannYuya TakahashiDmitry TaubinskyFelix TintelnotPetra ToddAlexander TorgovitskyRobert TownsendJuuso ValimakiStijn Van NieuwerburghJoseph VavraGreg VeramendiLise VesterlundAnnette Vissing-JorgensenAlessandra VoenaNico VoigtlaenderJessica WachterChristopher WaltersRoberto WeberBirger WernerfeltAsher WolinskyAlexander WolitzkyPierre YaredNese YildizAli YurukogluBasit ZafarJidong ZhouOwen ZidarSarah ZubairyGabriel Zucman Previous articleNext article DetailsFiguresReferencesCited by Journal of Political Economy Volume 126, Number 5October 2018 Article DOIhttps://doi.org/10.1086/700865 © 2018 by The University of Chicago. All rights reserved.PDF download Crossref reports no articles citing this article.

Previous articleNext article FreeRecent RefereesPDFPDF PLUSFull Text Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinked InRedditEmailQR Code SectionsMoreJournal of Political Economy acknowledges the assistance of:Johannes AbelerManuel AdelinoNikhil AgarwalAnna AizerDavid AlbouyHunt AllcottNizar AllouchDouglas AlmondMarcella AlsanJoshua AngristGabriela AntoniePeter ArcidiaconoCostas ArkolakisDavid AtkinYu AwayaEduardo AzevedoSimcha BarkaiEmek BaskerChristiane BaumeisterSascha BeckerJuliane BegenauSamuel BentolilaArthur BlouinAaron Bodoh-CreedStephane BonhommeSamuel BowlesEric BudishFiona BurligMichael CallenDennis CarltonMarco CastilloBriana ChangJudith ChevalierEric ChynJeffrey ClemensAllan Collard-WexlerPedro Dal BoSanmay DasThomas DavidoffGeoffroy de ClippelDavid de la CroixDaniela Del BocaMelissa DellDavid DemingWouter DesseinSebastian Di TellaEleanor DillonJonathan DingelHyun Soo DohDave DonaldsonThorsten DrautzburgPierre DuboisGreg DuncanUmut DurGilles DurantonPiotr DworczakZvi EcksteinLena EdlundMartin EichenbaumPhilipp EisenhauerMehmet EkmekciErik EysterRobert FeenstraFrederico FinanJonas FisherRaymond FismanChristopher FlinnAnthony FowlerMarco FrancesconiAlexander FrankelDaniel FriedmanJohn FriedmanDrew FudenbergDon FullertonEtienne GagnonJorge GarcíaJodi GardnerCecile GaubertAlessandro GavazzaTed GayerAlexander GelberHeiko GerlachDavid GillUri GneezyClaudia GoldinGary GortonPiero GottardiGene GrossmanRong HaiRobert HallChristian HansenJoseph HarringtonGlenn HarrisonPaul HealyRichard HoldenRichard HornbeckCosmin IlutJun IshiiKelsey JackRobert JensenJanna JohnsonJustin JohnsonBoyan JovanovicLoukas KarabarbounisDean KarlanKyeongbae KimPeter KlenowHenrik KlevenRalph KoijenJonathan KolstadScott KominersRachel KrantonIlan KremerMichael KremerTim LandvoigtClare LeaverSangMok LeeJacob LeshnoSteven LevittJin LiShengwu LiBarton LipmanFrancesco LippiJeremy LiseQingmin LiuKatrine LokenShelly LundbergRamon MarimonLaurent MathevetGregor MatvosJames McAndrewsBernard McSherryMarc MelitzKonstantinos MetaxoglouRichhild MoessnerFerdinando MonteStephen MorrisJack MountjoyPaulo NatenzonCharles NathansonPaul NiehausEd NosalCormac O GradaPaulina OlivaBenjamin OlkenMallesh PaiStavros PanageasAndreas ParkRonni PavanJudea PearlZhuan PeiRicardo Perez-TrugliaRyan PetersLaura PilossophHerakles PolemarchakisDina PomeranzAndrea PratDiego PugaValerie RameyStephen ReddingFrederic Robert-NicoudDavid RobinsonJonathan RobinsonPablo Robles SantamarinaMark RosenzweigJohn RustBernard SalaniePaola SapienzaTim Schmidt-EisenlohrPeter SchottSam Schulhofer-WohlKatja SeimAmit SeruRon ShacharArtyom ShneyerovAndrzej SkrzypaczErik SnowbergSebastian SoteloJon SteinssonSteven SternTodd StinebricknerJan StuhlerChad SyversonAlireza Tahbaz-SalehiFelix TintelnotPetra ToddAlexander TorgovitskyFabrice TourreFrancesco TrebbiStijn Van NieuwerburghDimitri VayanosRobert VerrecchiaAshley VissingShing-Yi WangDavid WeinsteinScott WeisbennerEric WeylChen YehBasit ZafarYves Zenou Previous articleNext article DetailsFiguresReferencesCited by Journal of Political Economy Volume 126, Number 3June 2018 Article DOIhttps://doi.org/10.1086/698866 © 2018 by The University of Chicago. All rights reserved.PDF download Crossref reports no articles citing this article.

People who use venues for productive conversations impose norms (“LAAPs”) encouraging statements that are meaningful, relevant, honest, understandable, diplomatic, engaging, helpful, and supportive of the long-term success of the venue. Statements that undermine productivity by falling short on some of these characteristics without sufficient strength on others are excluded, policed and punished as “crebit”. I describe a variety of LAAPs and their crebit, use the framework to offer testable predictions about when speech will be punished as crebit, and propose some exclusions that would allow more productive conversations online and about the limits of speech on campus.

In vertical relationships, when a contract is incomplete, underinvestment problems can arise because a seller's sunk investment costs are ignored in ex post negotiation with a buyer. In this situation, this research examines how the seller's strategic delegation in bargaining using stock options can mitigate the investment hold-up problem in vertical relationships. Under the strategic delegation in bargaining using stock options, the investment cost is not sunk and it is a relevant cost from a manager's perspective because the sunk investment cost is now reversible depending on the manager's exercise decision of stock options. Thus, under the strategic delegation, the reversible sunk costs become relevant costs in the ex post negotiation and the relevant investment costs increase transaction price in the negotiation. The resulting increased transaction price improves the seller's profit, and the improved return on investment induces the first-best level of investment by the seller firm. Unlike previous research, the first-best level of investment can be achieved without relying on any ex ante agreement and renegotiation. The bargaining effect of stock options is robust so that the first-best result can be still obtained when an endogenous exercise price, bilateral investments, cooperative investments, and a simple moral hazard problem are considered.

We report the results of 18 experimental markets designed to investigate the effect of the information environment on informed traders' performance. In our experiment, traders bid to acquire costly, imperfect information on asset value and then take part in a double-auction asset market. We posit that the nature of the information environment, distinguished by the cost of information, affects traders’ ability to prosper. Using the inverse relationship between cost of information and number of informed traders, we study whether traders can properly determine the value of the information under enriched and impoverished environments. In our experiment, the enriched environment includes a significant number of informed traders, whereas the impoverished environment has few informed traders. We find that traders in an impoverished environment pay too much for information and, once informed, they do not transact enough to recover the cost of information acquisition. Traders who compete for information that confers a larger information advantage are worse off than those who compete in an environment in which information is more widely available.

In this commentary on “Do features that associate managers with a message magnify investor's reactions to narrative disclosures?” by Asay, Libby, and Rennekamp (2018), I discuss issues regarding the experimental methods commonly used to study the effects of narrative financial disclosures. First, I suggest a broader view of the complementarity of experimental and archival research. Second, experimental methods provide an opportunity to design materials that use minimal representations of phenomena of interest or to use a broader, 360°, approach in depicting the phenomena; I argue the latter approach is a valid option. Third, I note concerns about the ubiquitous “process” or mediation testing in many financial accounting experiments. Fourth, I argue that the use of online participant population can be improved through better screening, to parallel the screening we use with student participant groups. Fifth, I summarize comments by conference participants that questioned the source of corporate disclosure style choices and investor style expectations. The paper concludes with a call for a framework to organize and understand the myriad of financial disclosure style choices made by firm management.