We study whether tweets about racial justice predict the offline behaviors of nearly 20,000 US academics. In an audit study, academics that tweet about racial justice discriminate more in favor of minority students than academics that do not tweet about racial justice. Racial justice tweets are...

We use a signaling game to evaluate the incentives that affect an inventor's decision whether to work in a firm's lab or establish a start-up. The model predicts that in a "free market", in a high payoff project and in the firm's lab, the inventor's compensation will be a proportion of the...

A signal is privacy-preserving with respect to a collection of privacy sets, if the posterior probability assigned to every privacy set remains unchanged conditional on any signal realization. We characterize the privacy-preserving signals for arbitrary state space and arbitrary privacy sets. A...

In an infinitely repeated market entry game, an entrant does not know demand and actions are unobservedbut signaled via pro ts. The incumbent may choose a predatory price (a signal jam) when demand is high toyield negative pro ts to the entrant and induce exit. Efficiency is only possible for...

Recent research has studied heterogeneity in universalism vs. in-group favoritism to explain various economic and political behaviors. This paper documents that displayed universalism is significantly affected by social signaling concerns resulting from the anticipation of future economic...

This paper examines the relationship between competition and efficiency in a market in which incentive contracts are offered to overconfident agents. The context is a labor market in which worker effort is not observed by firms (moral hazard), workers have private information about their...

We propose a price impact model where changes in prices are purely driven by the order flow in the market. The stochastic price impact of market orders and the arrival rates of limit and market orders are functions of the market liquidity process which reflects the balance of the demand and...

Apart from its applications in credit analysis, distance to default (DD) is a useful tool in equity investment management which captures key elements of firm quality. By construction, it is positively correlated with momentum and negatively correlated with leverage and volatility. Our analysis...

We investigate the influence of US quality of political signals (USQPOLS) on advanced and emerging markets using the Global Vector Autoregressive (GVAR) model that also accommodates the macroeconomic conditions of the shock recipient markets. We show an immediate negative impact on the equity...

The importance of culture as an informal management control system is increasingly acknowledged in academia. While prior research mainly focuses on the value of culture on internal stakeholders (e.g., employees), we examine whether culture serves as a credible signal in building trust with...