We review theory and evidence relating to herd behaviour, payoff and reputational
interactions, social learning, and informational cascades in capital markets. We offer a …

Learning by observing the past decisions of others can help explain some otherwise
puzzling phenomena about human behavior. For example, why do people tend to converge …

Scholars from diverse disciplines have proposed numerous theories of business imitation.
We organize these theories into two broad categories:(1) information-based theories, where …

* The field of industrial organization has been transformed during the past twenty years. In
the 1950s and 1960s, IO was predominantly an empirical field with little theory to guide …

Peers' valuation matters for firms' investment: a one standard deviation increase in peers'
valuation is associated with a 5.9% increase in corporate investment. This association is …

We study how product-market interactions affect investment. We use reductions of import
tariffs to examine how incumbents modify investment when the threat of rivals' entry …

We examine whether sharp debt increases through leveraged buyouts and recapitalizations
interact with market structure to influence plant closing and investment decisions of …

Using a novel pairwise measure of firms' acquisition of rivals' disclosures, we show that
investment opportunities drive interfirm information flows. We find that these flows predict …

The complexity of a firm's strategy affects both the ease with which the firm can replicate the
strategy in a new setting and the ease with which rivals can imitate it. Simple strategies are …

An established firm can enter a new product market through acquisition or internal
development. Predictions that the choice of market entry mode depends on 'relatedness' …