We propose and analyze a general periodic-review model in which the firm has access to a set of potential suppliers, each with specific yield and price characteristics. Assuming that unsatisfied demand is backlogged, the firm incurs three types of costs: (i) procurement costs, (ii) inventory-carrying costs for units carried over from one period to the next, and (iii) backlogging costs.
We propose a model of asset management in which benchmarking arises endogenously, and analyze its unintended welfare consequences. Fund managers' portfolios are unobservable and they incur private costs in running them. Conditioning managers' compensation on a benchmark portfolio's performance partially protects them from risk, and thus boosts their incentives to invest in risky assets. In general equilibrium, these compensation contracts create an externality through their effect on asset prices.
I develop a model of group decision-making, in which a committee generates proposals and holds open discussions, but the ultimate decision is either taken by a leader (decision by authority) or by majority vote. Optimal communication processes are studied that combine both cheap talk statements (proposals) and costly state verification (discussions). I show that by favouring one particular agent—the leader—authoritative decisionmaking reduces rent-seeking discussions and often results in a higher decision-quality relative to majority decision-making.
Until fairly recently, the main approach to getting business to respond to climate change has been top-down efforts to regulate emissions and enact various forms of "carbon pricing." The aim of such efforts has been to make businesses "internalize" the costs associated with greenhouse gas (GHG) emissions. Governments are expected to set the environmental protection rules for companies in their respective countries, and markets are expected to adjust to the new regulations and carbon prices.
Dean Costis Maglaras discusses his new class, shares thoughts on returning to the classroom after three years.
Tano Santos, the Robert Heilbrunn Professor of Asset Management and Finance and Director of Columbia Business School’s Heilbrunn Center for Graham and Dodd Investing, discusses the school’s approach to value investing and finance.
A Better Alternative to Trump's WeChat Ban
Columbia Business School Professor Bruce Usher discusses his new book, which outlines the risks and opportunities for investors from climate change, and how current students and alumni are addressing major environmental challenges.
Virtual Wellness Offerings Are Pivotal in the Age of Remote Work
Training MBAs to Make Socially Responsible Business Decisions
These three dynamic classes teach students how to surface valuable ideas, influence others, and make the most of fast-changing technology.
These three dynamic classes teach students how to surface valuable ideas, influence others, and make the most of fast-changing technology.
Leaders must focus on implementing ideas, taking action, and making the transition to clean energy part of their core business strategy.
Professor Pierre Yared describes why the U.S. economy is unlikely to see an economic downturn comparable with the 1970s.
Priorities for the COVID-19 Economy
Harnessing Healthcare Data to Find Lifesaving Cures
Professor Pierre Yared describes why the U.S. economy is unlikely to see an economic downturn comparable with the 1970s.
Columbia Business School Professor Bruce Usher discusses his new book, which outlines the risks and opportunities for investors from climate change, and how current students and alumni are addressing major environmental challenges.
New data has sparked a debate about the state of the economy. Here’s what some of our faculty members had to say.
The Marketplace for Consumer Attention
Professor Gita Johar shares research insights on why it spreads, spotting who shares it, and a multi-pronged approach to reduce it.
Improving Workplace Safety: What Works
Professor Pierre Yared describes why the U.S. economy is unlikely to see an economic downturn comparable with the 1970s.
These three dynamic classes teach students how to surface valuable ideas, influence others, and make the most of fast-changing technology.
