This paper documents a positive relation between internationalization and bank risk. This is consistent with the empirical dominance of the market risk hypothesis – whereby internationalization increases banks’ risk due to market-specific factors – over the diversification hypothesis – whereby internationalization allows banks to reduce risk through increased diversification of their operations...

This paper models partisanship and nonpartisanship as alternative norms or conventions of behavior. Evolutionary game theoretic techniques are used to analyze the selection of partisanship or nonpartisanship by a population interacting over time. Equilibrium selection in the model is driven by the varying observability of partisan behavior introduced by electoral institutions, coupled with the ...

Testosterone has pronounced effects on men's physiological development and smaller, more nuanced, impacts on their economic behavior. In this study of 1199 Australian adult males, we investigate the relationship between the self-employed and their serum testosterone levels. Because prior studies have identified that testosterone is a hormone that is responsive to external factors (e.g. competit...

This paper shows that the positive correlation between the presence of institutional investors and a firm’s likelihood of being acquired is due to ownership endogeneity, i.e., due to the fact that institutions are better informed investors. After controlling for this ownership endogeneity, the presence of institutional investors reduces the probability of being acquired. There is also evidence ...

The use of adaptive designs in conjoint analysis has been shown to lead to an endogeneity bias in part-worth estimates using sampling experiments. In this paper, we re-examine the endogeneity issue in light of the likelihood principle. The likelihood principle asserts that all relevant information in the data about model parameters is contained in the likelihood function. We show that adhering ...

W investigate the role of potential weekly brand-specific characteristics that influence consumer choices, but are unobserved or unmeasurable by the researcher. We use an empirical approach, based on the estimation methods used for standard random coefficients logit models, to account for the presence of such unobserved attributes. Using household scanner panel data, we find evidence that ignor...

Contest functions (alternatively, contest success functions) determine probabilities of winning and losing as a function of contestants’ e¤ort. They are used widely in many areas of economics that employ contest games, from tournaments and rent-seeking to con‡ict and sports. We …rst examine the theoretical foundations of contest functions and classify them into four types of derivation: stochas...