This paper studies the violation of the most basic no-arbitrage condition in international finance — Covered Interest Parity (CIP). We find that the CIP puzzle largely stems from funding liquidity differences, reflected in the marginal funding rates of the main arbitrageurs. With severe...

Many products have different attributes which appeal to the different segments of the market. We investigate how firms should position their products in a multi-attribute product market where consumers are heterogeneous in (1) the product attributes that they care about, and (2) their...

We consider the problem of segmenting a large population of customers into non-overlapping groups with similar preferences, using diverse preference observations such as purchases, ratings, clicks, etc. over subsets of items. We focus on the setting where the universe of items is large (ranging...

This paper investigates the pro-cyclicality of capital in the advanced internal ratings-based (A-IRB) Basel approach for retail portfolios and identifies the fundamental assumptions required for stable A-IRB risk weights over the economic cycle. Specifically, it distinguishes between endogenous...

Consumer Segments based on psychographics is preferred over the traditional criteria of segmentation. Applying the Exploratory Factor Analysis, the study identifies the dimensionality of beliefs underlying attitude toward advertising in general (Ag). Hierarchical clustering and K-Means...

Airlines use itinerary choice models to allocate the total number of passengers in a city pair to specific itineraries. In a related paper, we estimated a multinomial logit (MNL) itinerary choice model using database of more than 3 million tickets for Continental U.S. markets provided by the...

This study investigates the relative importance between service quality and firm size in the performance determinants of audit firms under different market segments and business strategies. This study extracts a human capital-based service quality by the principal component analysis technique....

This paper investigates the impact of ADR listing on the trading volume and volatility of the domestic market. Existing theories indicate that trading shifts to a market with lower transaction costs, and the level of volatility is directly related to the level of trading activity. The analyses...

The tremendous increase of the use of mobile phones in Bangladesh by the young users has expanded the cellular phones market that has also attracted the attention of the foreign investors. This article attempts to investigate underlying sets of consumer motives for using cellular phones in...