This paper examines a potential agency conflict between mutual fund investors and companies. Investors would like the company to use its judgment maximize risk‐adjusted returns. A company, however, in desire value as concern, has an incentive take actions that increase inflow of investments. We semiparametric model estimate shape flow‐performance relationship for sample growth income funds observed over 1982–92 period. The creates incentives managers or decrease riskiness are dependent on...

This paper discusses the prevalence of Silicon Valley‐style localizations individual manufacturing industries in United States. A model which localized industry‐specific spillovers, natural advantages, and pure random chance all contribute to geographic concentration is used develop a test for whether observed levels are greater than would be expected arise randomly motivate new indices coagglomeration. The proposed control differences size distribution plants areas data available. As...

Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate another, or coagglomerate. construct pairwise coagglomeration indices for US manufacturing from the Economic Census. then relate levels to degree industry pairs share goods, labor, ideas. To reduce reverse causality, where collocation drives input-output linkages hiring patterns, we use data UK and areas two are not collocated. All three supported, with...

This paper discusses the dynamic implications of learning in a large population coordination game, focusing on structure matching process which describes how players meet.As Kandori, Mailath, and Rob (1993) combination experimentation myopia creates "evolutionary" forces lead to coordinate risk dominant equilibrium.To describe play with finite time horizons it is necessary consider rates at systems converge.In populations uniform matching, determined largely by historical factors.In...

We examine whether mutual fund performance is related to characteristics of managers that may indicate ability, knowledge, or effort. In particular, we study the relationship between and manager's age, average composite SAT score at undergraduate institution, manager has an MBA. Although raw data suggest striking return differences with different characteristics, most these can be explained by behavioral selection biases. After adjusting for these, some remain. who attended higher‐SAT...

The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration? by Glenn Ellison and Edward L. Glaeser. Published in volume 89, issue 2, pages 311-316 American Economic Review, May 1999

This paper studies the way that word-of-mouth communication aggregates information of individual agents. We find structure process determines whether all agents end up making identical choices, with less this conformity more likely. Despite players' naive decision rules and stochastic environment, may lead players to adopt action is on average superior. These socially efficient outcomes tend occur when each agent samples only a few others.

Journal Article Career Concerns of Mutual Fund Managers Get access Judith Chevalier, Chevalier University Chicago Graduate School Business and National Bureau Economic Research Search for other works by this author on: Oxford Academic Google Scholar Glenn Ellison Massachusetts Institute Technology The Quarterly Economics, Volume 114, Issue 2, May 1999, Pages 389–432, https://doi.org/10.1162/003355399556034 Published: 01 1999

This paper studies agents who consider the experiences of their neighbors in deciding which two technologies to use. We analyze learning environments, one same technology is optimal for all players and another each better some them. In both use exogenously specified rules thumb that ignore historical data but may incorporate a tendency more popular technology. cases these naive can lead fairly efficient decisions long run, adjustment be slow when superior first introduced.

This paper uses data from the Census Bureau's Longitudinal Research Database to describe dynamics of geographic concentration in U.S. manufacturing industries. Agglomeration results a combination mean reversion and randomness growth state-industry employment. Although industries' agglomeration levels have declined only slightly over last quarter century, we find great deal movement for many geographically concentrated We decompose aggregate changes into portions attributable plant births,...

The paper considers the repeated prisoner's dilemma in a large-population random-matching setting where players are unable to recognize their opponents. Despite informational restrictions cooperation is still sequential equilibrium supported by "contagious" punishments. does not require excessive patience, and contrary previous thought, need be extraordinarily fragile. It robust introduction of small amounts noise remains nearly efficient. Extensions discussed models with heterogeneous rates...

Over the last three decades there has been a dramatic slowdown of publication process at top economics journals. A substantial part is due to journals' requiring more extensive revisions. Various explanations are considered: democratization review process, increases in complexity papers, growth profession, and cost benefit arguments. Changes profession examined using time‐series data. Connections between these changes paper‐level There evidence for some explanations, but most remains...

Journal Article Basins of Attraction, Long-Run Stochastic Stability, and the Speed Step-by-Step Evolution Get access Glenn Ellison Massachusetts Institute Technology Search for other works by this author on: Oxford Academic Google Scholar The Review Economic Studies, Volume 67, Issue 1, January 2000, Pages 17–45, https://doi.org/10.1111/1467-937X.00119 Published: 01 2000 history Received: September 1995 Accepted: February 1999

This article examines a model in which advertisers bid for “sponsored-link” positions on search engine. The value derive from each position is endogenized as coming sales to population of consumers who make rational inferences about firm qualities and optimally. Consumer strategies, equilibrium bidding, the welfare benefits auctions are analyzed. Implications reserve prices number other auction design questions discussed.

This article develops models in which obfuscation is individually rational for oligopolistic firms. Firms sell a homogeneous good to consumers who incur search costs learn prices. Search are endogenized by allowing obfuscation—firms have an unobservable action that increases the time needed their price. One model involves convex shopping time. We show slight convexity can dramatically alter equilibrium price distribution. A second examines informational linkage between current and future...

Journal Article A Model of Add-On Pricing Get access Glenn Ellison Massachusetts Institute Technology and National Bureau Economic Research Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Economics, Volume 120, Issue 2, May 2005, Pages 585–637, https://doi.org/10.1093/qje/120.2.585 Published: 01 2005

This article reexamines the experience of Joint Executive Committee, an 1880s railroad cartel, to assess applicability Green and Porter (1984) Rotemberg Saloner (1986) theories price wars. After discussing necessary modifications theories, I estimate a number dynamic models explore causes wars, cyclical nature pricing, possibility that secret cuts may have been given. The estimates provide some support for predictions first theory.

This paper develops models of quality standards to examine two trends: academic journals increasingly require extensive revisions submissions, and articles are becoming longer changing in other ways. Papers modeled as varying along dimensions: q reflects the importance main ideas r aspects quality. Observed trends regarded increases r‐quality. A static equilibrium model illustrates comparative statics explanations. dynamic which referees (with a biased view their own work) learn social norms...