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One of the most visible and publicized trends in the movie industry is the escalation in movie advertising expenditures over time. Yet, the returns to movie advertising are poorly understood. The main reason is that disentangling the causal e¤ect of advertising on movie sales is di¢ cult because of the classic endogeneity problem: movies expected to be more(More)
An influential literature has emerged around the premise that there exists an uneasy tension between (1) bank-firm relationships that promote incentives for firm—specific investments by banks, and (2) competition between banks that can destroy such incentives. This paper studies the industrial organization of the investment banking market in order to shed(More)
This study provides evidence that the portfolio of products offered by a multiprod-uct firm affects consumer purchase decisions with respect to each of its products. We present a theory that explains this empirical regularity. The theory involves revising the information set of consumers to include the profile of multiproduct firms. We show that revising(More)
We analyze a simple stochastic environment where policymakers can be threatened by " nasty " interest groups. In the absence of these groups, the policymaker's desire for reelection guarantees that good policies are implemented for every realization of the shock. When pressure groups can harass the policymaker, good policies will be chosen for only a subset(More)
T he media plays an important role in modern democracies. For example, it provides a large proportion of the information with which policymakers and voters make decisions, as well as analysis and editorial content that may influence the conclusions reached by potential voters (see, for example, Walter Lippmann 1922). 1 Understandably, the possibility that(More)
We study the Chilean electricity distribution industry and find that costs (the ratio of reported costs to revenues) has fallen since price caps were introduced in 1989. Cost reductions are U-shaped: strong initial cost reductions reverse every four years, coinciding with regulatory reviews. We then use stock market data to complement our study. We(More)
Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Abstract For decades, management consultants and the popular business press have urged large firms to flatten their(More)