This study uses learning theory to show how knowledge domains affect product extension decisions and how these product decisions change as firms age. Faced with the choice of new product-markets, a firm might decide to introduce a similar product, by leveraging existing firm knowledge, or to experiment with a less familiar product, which requires new knowledge.
We study a multi-product firm with limited capacity where the products are vertically (quality) differentiated and the customer base is heterogeneous in their valuation of quality. While the demand structure creates opportunities through proliferation, the firm should avoid cannibalization between its own products.
This study provides general methods to measure and characterize the welfare costs of long-run consumption uncertainty with Epstein and Zin (1989) preferences. I find that long-run uncertainty can create significant welfare costs even when risk aversion is moderate and the short-run consumption volatility low.
By considering banks as portfolios of assets in different locations, we study how real estate shocks get amplified across bank’s business areas while controlling for local demand shocks and bank location–specific factors.
Queues are an inherent outcome of many service systems. Because waiting in queue is typically perceived as negative, customers may choose either to not enter a queue if the length is too long (balk) or exit a queue prior to receiving service (renege).
We disentangle and study the relative importance of different risk preferences in explaining extended warranty purchases and the high premia paid for them. Empirical and behavioral research on insurance is at odds with whether diminishing returns (curvature of the utility function), or loss aversion and nonlinear probability weighting lead to observed consumer behavior. This lack of consensus is primarily due to the inability of standard choice data to separate different risk preferences, and the consequent need to rely on strong parametric assumptions.
This paper examines how tax uncertainty created by highly aggressive tax planning affects a firm's investment decisions. The tax uncertainty that we study arises from tax choices of such inadequate merit that the firms themselves believe that they will lose if audited. Consistent with a simple model that we develop, we find that investments in fixed assets and research and development are increasing, at a decreasing rate, in the tax savings from these aggressive plans.
The authors study the drivers and performance implications of retailers’ branding strategies for their premium and economy private-label tiers. Retailers can opt for store-banner branding and use their store-banner name and/or logo to reveal their ownership, or they can use stand-alone branding and avoid an explicit link between store brand and retail banner.
On March 27, four of North Carolina’s immigrant business leaders will be featured as part of the 2018 Chandler Conversation in Southern Business History, entitled Making America: Immigration & Entrepreneurship in North Carolina. The event, sponsored by the Center for the Study of the American South, will be held at the FedEx Global Education Center at 301 Pittsboro Street in Chapel Hill, from 7:00 to 8:30 p.m.
We assess attenuating and augmenting effects of brand commitment on consumer responses when product recalls occur. Consistent with our theorization, results from a laboratory experiment and an event study show that high levels of brand commitment attenuate negative consumer responses in low-severity product recalls but augment them in high-severity product recalls.
Recognizing that initial public offerings (IPOs) represent the debut of private firms on the public stage, this study investigates how pre-IPO customer and competitor orientations (CCOs) affect IPO outcomes.
Professional psychologists are increasingly encouraged to document and evaluate the quality of the treatment they provide. However, there is a significant gap in knowledge about the extent to which extant definitions of treatment quality converge with patient perceptions. The primary goal of this study was to examine how adolescent substance users (ASU) and their caregivers perceive treatment quality.
Extant literature highlights the importance of specific choices such as pricing and particular strategieslike “get big fast” for strategy in two-sided markets. Yet it leaves open how executives form a viable strategy in entrepreneurial settings, particularly when buyers, sellers, and product may be uncertain. With an inductive case study of 8 two-sided marketplace ventures in multiple industries, we developa theoretical framework that describes how entrepreneurs address this challenge: by focusing on successive strategic domains, beginning with supply.
From April 23 through April 25, 2018, the Kenan Institute of Private Enterprise was proud to co-host the Black Communities Conference: A Conference for Collaboration at the Carolina Theatre of Durham, N.C. The event was put on by the institute’s affiliated center, NCGrowth, the Institute for African-American Research, the Southern Historical Collection and the Center for the Study of the American South.
The UNC Energy Center will host a conference on Carbon Capture/Sequestration (CCS). The conference will feature a keynote address from John Minge, who is chairing the National Petroleum Council’s current CCS study. Spokespersons for emerging technology developers, NetPower and ExxonMobil, will present their capabilities and recent efforts to demonstrate their effectiveness. Spokespersons from major oil companies, utilities and the National Renewable Energy Lab will discuss options for economically deploying captured CO2.
This trial will provide evidence on the impact of a behavioral intervention to implement huddles as a key component of team-based care models. Knowledge gained from this trial will be critical to broader deployment and successful implementation of team-based care models.
This study shows that the municipal yield curve is informative about local economic outcomes.
A new study by the Kenan Institute of Private Enterprise and the National Venture Capital Association shows employment grows roughly eight times faster at venture capital-backed startups than other private-sector firms, and 62.5% of employment at VC-backed companies took place in states other than California, Massachusetts, and New York, despite the concentration of VC investment in those areas.
In recent years, institutional investors have progressively depended on higher returns from private markets. As a result, there's been an increase in competition for quality investment. In a recent Economist special report on the topic, Institute for Private Capital Research Director Greg Brown and his co-authors' study on private asset returns is featured.
The United States may be a highly productive society as a whole, but regionally results vary widely. Institute Chief Economist Gerald Cohen discusses the success stories and trends identified from our American Growth Project study of the top producing cities.