• Publications
  • Influence
Motivating Innovation
Motivating innovation is an important concern in many incentive problems. For example, shareholders of large corporations often need to motivate managers to pursue more innovative businessExpand
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Is Pay for Performance Detrimental to Innovation?
We provide evidence that the combination of tolerance for early failure and reward for long-term success is effective in motivating innovation. Expand
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Governance Through Trading and Intervention: A Theory of Multiple Blockholders
Traditional theories argue that governance is strongest under a single large blockholder, as she has high incentives to undertake value-enhancing interventions. However, most firms are held byExpand
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Incentives and Creativity: Evidence from the Academic Life Sciences
Despite its presumed role as an engine of economic growth, we know surprisingly little about the drivers of scientific creativity. In this paper, we exploit key differences across funding streamsExpand
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Independent Boards and Innovation
Much research has suggested that independent boards of directors are more effective in reducing agency costs and improving firm governance. How they influence innovation is less clear. Relying onExpand
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Feedback effects of credit ratings
Rating agencies are often criticized for being biased in favor of borrowers, for being too slow to downgrade following credit quality deterioration, and for being oligopolists. Based on a model thatExpand
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Information Percolation in Large Markets
We introduce a simple model of the “percolation” of information of common interest through a large market, as agents encounter each other over time and reveal information to each other, some of whichExpand
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Experimentation and the Returns to Entrepreneurship
Previous studies have argued that entrepreneurs earn less and bear more risk than salaried workers with otherwise similar characteristics. In a simple model of entrepreneurship, I show that estimatesExpand
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Performance-Sensitive Debt
This paper studies performance-sensitive debt (PSD), the class of debt obligations whose interest payments depend on some measure of the borrower’s performance. We demonstrate that the existence ofExpand
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Incentives to Innovate and the Decision to Go Public or Private
We model the impact of public and private ownership structures on firms' incentives to invest in innovative projects. We show that it is optimal to go public when exploiting existing ideas andExpand
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