Management Science Review

The value of high-income individuals’ time can make it inefficient to volunteer. The time spent volunteering could be used to increase earnings that are then donated, with the charity benefitting from that donation more than the value of the time. A high-priced consultant sweeping the floors in a soup kitchen could have earned enough to pay for a janitor and much more.

View Full Post »

A growing number of hospitals in different countries have begun posting the waiting times at their emergency department (ED). This information is given on website, billboards, and smartphone apps. While the initial motivation to provide this information is to showcase their commitment to good quality of care, from the operational perspective, showing people the wait times may also impact patients’ choice and subsequently affect system performance. In particular, if patients care about the waiting time and tend to choose strategically the hospital with a shorter ED delay, one expects that the load among different hospitals in the same neighborhood will be more balanced. This increased coordination in the network can lead to substantial performance improvement for the hospitals network.

View Full Post »

The aftermath of the 2008-09 financial crisis witnessed one of the most active periods of regulatory intervention in U.S. financial history since the New Deal. Since then, considerable doubts have been raised on the negative welfare consequences of some of these regulations. One of the most controversial issue was bond market liquidity. Many expressed concerns that market liquidity in fixed-income markets had deteriorated because financial regulations such as the Volcker Rule and the Basel III banking regulation constrained banks’ ability to provide liquidity. In “Regulation and Market Liquidity, Management Science (May, 2019)”, Francesco Trebbi and Kairong Xiao empirically investigate this claim.

View Full Post »

Nobody likes to wait, especially when suffering from a potentially life-threatening condition that requires immediate intervention. Yet millions of patients face this fate even in the most developed countries. Across the 145.6 million annual Emergency Department (ED) visits in the US, patients wait on average 2.25 hours, and even patients with broken bones wait an excruciating 50 minutes on average before they are given any pain medication. Perhaps more worryingly, close to 2% of the patients leave the ED because of long wait times before getting any treatment.

View Full Post »

Prior to the onset of the 2007/2008 financial crisis, Larry Summers remarked that "changes in the structure of financial markets have enhanced their ability to handle risk in normal times" but that "some of the same innovations that contribute to risk spreading in normal times can become sources of instability following shocks to the system." (Financial Times, December 26, 2006). Since the financial crisis, understanding what structural changes can open the door to financial instability has become of paramount relevance.

View Full Post »

We are witnessing, across a wide range of domains, a shift away from the exclusive ownership and consumption of resources to one of shared use and consumption. This shift is taking advantage of innovative new ways of peer-to-peer sharing that are voluntary and enabled by Internet-based exchange markets and mediation platforms.

View Full Post »

In frictionless financial markets, entrepreneurs and firms should be able to obtain funding for all positive net present value projects. In such a world, changes in local credit supply would have no effect on real outcomes. However, if information or agency frictions interfere with capital mobility then suboptimal outcomes can occur.

View Full Post »

Innovation is a driving force in today’s economy, but investing in new technologies, products, or services is risky and challenging. Decisions on research and development (R&D) budgets and the prioritization of research projects typically fall to top firm managers. But, is a CEO’s skill set an important determinant of innovation? And if so, which CEO skills would be more valuable to produce innovation?

View Full Post »

Since the launch of Amazon’s Kindle ebook reader, book publishers have debated when ebook editions of their books should be released relative to their hardcover and paperback versions. Some publishers have been concerned that releasing ebooks together with hardcovers would hurt sales of higher priced print books. Digital platforms such as Amazon, however, claim that ebooks do not cannibalize print sales but rather represent mostly incremental sales.

View Full Post »