The Internet and other forms of rapid data exchange are creating more efficient supply chains. Business Deals Rely on Trust, Not Law John McMillan Common sense suggests that commercial laws designed to hold business partners to their promises are essential to sustain the trust that makes markets flourish. But look around the world, and you will find that not every thriving economy exists in a land of commercial law and order. That paradox drew GSB economist John McMillan to find out what makes commercial agreements work in such an uncertain, scrappy environment. There is evidence, analyzed by GSB Assistant Professor of Finance Manju Puri, showing that supported IPOs are typically larger, have lower underwriter commissions, offer higher prices than unsupported stocks, and are not likely to be underwritten by lesser-known investment banks.
Price support seems to have a role in helping after-market liquidity.
Don't Tell, Just Ask Itamar Simonson Research by marketing professor Itamar Simonson found that people who expect to evaluate are decidedly more negative. He also discovered that merely asking people to state their expectations before they receive a service made them more negative. But that, warns marketing professor Itamar Simonson, is unrealistic. Recent studies on buyer decision making suggest that these predictions are exaggerated and create overblown expectations. Tiedens Larissa Tiedens, assistant professor of organizational behavior, looks at how a person's emotional expressions affect the way others award that person status and power.