Working Papers
None this week
Publications
Adverse Selection in Online 'Trust' Certifications
| Author: | Benjamin Edelman |
|---|---|
| Publication: | Proceedings of ICEC'09 (forthcoming). ACM International Conference Proceeding Series |
Abstract
Widely used online "trust" authorities issue certifications without substantial verification of recipients' actual trustworthiness. This lax approach gives rise to adverse selection: the sites that seek and obtain trust certifications are actually less trustworthy than others. Using a new dataset on website safety, I demonstrate that sites certified by the best-known authority, TRUSTe, are more than twice as likely to be untrustworthy as uncertified sites. This difference remains statistically and economically significant when restricted to "complex" commercial sites. In contrast, competing certification system BBBOnline imposes somewhat stricter requirements and appears to provide a certification of positive, albeit limited, value.
Download the paper:
http://www.benedelman.org/publications/advsel-trust.pdf
Cases & Course Materials
The Christmas Eve Closing
Harvard Business School Case 209-043
In 2002, two homeowners in Massachusetts are deciding whether to refinance their home less than two years after taking out an initial mortgage and a subsequent home equity line of credit.
Purchase this case:
http://cb.hbsp.harvard.edu/cb/product/209043-PDF-ENG
How Institutional Investors Think About Real Estate
Harvard Business School Note 209-152
Real estate is an increasingly important component in the portfolios of institutional investors. This note discusses the issues these investors must consider when investing in real estate from the legal forms of ownership, to separate or commingled funds, to property type and geography, to broad or focused managers, to leverage, to the timing of investment, and finally, to the compensation paid to both external managers and internal staff.
Purchase this note:
http://cb.hbsp.harvard.edu/cb/product/209152-PDF-ENG
Moods of Norway
Harvard Business School Case 609-106
Describes a young fashion company competing in a variety of unconventional ways, many "experience economy" related. Moods fronts their brand with the "boy band" images of its three founders and designs eccentric features into their clothes as a way of gaining mindshare among customers even though they cannot spend on marketing the way their competitors do. The case invites students to explore an unusual business model in both concept and execution.
Purchase this case:
http://cb.hbsp.harvard.edu/cb/product/609106-PDF-ENG
Pfizer: Letter from the Chairman
Harvard Business School Case 110-003
This case explores maximizing shareholder value as a goal in executive decision making. Over a period of nine years, three different Pfizer CEOs make critical decisions intended to increase shareholder value. But the results are disappointing. To allow students to examine these decisions, the case provides excerpts from four Chairman's letters to shareholders from Pfizer's annual reports, followed by a description of the circumstances behind each letter. In the 2000 annual report, then-CEO Bill Steere discusses Pfizer's rise to industry prominence with the acquisition of Warner-Lambert. In the 2003 report, new CEO Hank McKinnell discusses Pfizer's performance goals and its acquisition of Pharmacia, which gave it control of the anti-arthritis drug Celebrex. In the 2005 report, McKinnell discusses his decision to keep Celebrex on the market despite health risks. In the 2006 report, new CEO Jeff Kindler barely mentions McKinnell's (controversial) early retirement and describes efforts to reform the company. The case closes in February 2009, just after Pfizer announces plans to acquire competitor Wyeth. Since 2000, Pfizer's tremendous growth in assets through acquisitions has not translated into significant growth in net income or share price. In closing, students are asked what Kindler should write in the letter to shareholders to open Pfizer's 2008 annual report.
Purchase this case:
http://cb.hbsp.harvard.edu/cb/product/110003-PDF-ENG
The Rise of President Barack Hussein Obama
Harvard Business School Case 409-115
This case profiles President Barack Hussein Obama's rise to the presidency as an "improbable candidate." The case illustrates the ways in which he overcame criticism from those who questioned his credibility and his values, and skepticism from those who were unsure whether America was ready to elect its first African American President. It also explores how President Obama was able to gain support from the American people despite lagging behind Senator Hillary Clinton, the presumed Democratic frontrunner, throughout much of the pre-primary period.
Purchase this case:
http://cb.hbsp.harvard.edu/cb/product/409115-PDF-ENG