Bharat Anand

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We use data on a movie’s stock price as it trades on the Hollywood Stock Exchange, a popular online market simulation, to study the impact of movie advertising. We find that advertising has a positive and statistically significant effect on expected revenues, but that the effect varies strongly across movies of different ‘‘quality’’. The point estimate(More)
We study how the sequence of Žnancing of R&D varies according to the ease with which property rights over knowledge can be deŽned. There are two Žnanciers: a venture capitalist (VC) and a corporation. The knowledge acquired in costly research becomes embodied in the researcher’s human capital, and she may hold up the Žnancier and walk away with the project(More)
This study presents a signaling model of advertising for horizontally differentiated products. The central ingredients of the model are two important characteristics of advertising—targeting, and noisy information content. The theory yields interesting results about the informational role of targeted advertising, and its consequences. First, targeting can(More)
The 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). 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)
What is the effect of pre-release advertising on the demand for a product? And does the magnitude of that effect vary according to the quality of the good? We empirically examine these questions in the context of the motion picture industry. We make use of a unique, proprietary data set that covers weekly television advertising expenditures, weekly(More)
For decades, management consultants and the popular business press have urged large firms to flatten their hierarchies. Flattening (or delayering, as it is also known) typically refers to the elimination of layers in a firm’s organizational hierarchy, and the broadening of managers’ spans of control. The alleged benefits of flattening flow primarily from(More)
Communication is central to many settings in marketing and economics. A focal attribute of communication is miscommunication. We model this key characteristic as a noise in the messages communicated, so that the sender of a message is uncertain about its perception by the receiver, and then identify the strategic consequences of miscommunication. We study a(More)