How does a group’s social structure influence informal sanctioning behavior in cooperative dilemmas? It is generally accepted that the ability to punish non-cooperators increases with greater social connectedness and should improve cooperation. However, this hypothecated ability often does not...

Using data from the Stockholm Stock Exchange we study the value added by (as distinct from the abnormal returns to) analysts’ recommendations. Recommending brokers’ clients trade profitably around positive recommendations at the expense of other brokers’ clients. Significant profits come...

Individual investors increasingly trade and hold mutual funds via investment platforms, many of which make their own fund recommendations. Using data from leading platforms in the U.K., we examine the drivers, impact, and performance of these recommendations. Platforms’ recommendations favor...