Research Seminars

Is Embeddedness Optional? Integrating social capital and real option theories

Speaker: Russell COFF
Emory University

2 May 2007 - From 16:30 to 18:00

Weak ties are thought to mitigate problems of over-embeddedness by providing information-access while minimizing rigid commitments and redundant information that are linked to strong ties. We present two studies of the role of social ties in investment decisions. The first is an experimental study of the effects of strong and weak ties in a real options context. Decision-makers were given an opportunity to continue
funding a project amidst information that it should be dropped. Despite the negative signal, subjects continued to invest heavily in both strong and weak ties treatment conditions. We follow this with a qualitative field study of the venture capital industry. This documents how entrepreneurs and venture capitalists rely heavily on weak ties for initial investments but draw on much stronger ties that develop over time
in making subsequent decisions. Accordingly, while social ties increased the risk of bias, managers consciously relied more heavily on such ties over time - especially as they made exercise decisions. We conclude with a call for research on the dilemmas embeddedness can create as well as solutions that may help firms address these challenges.

Finance

Speaker: Xavier Gabaix

13 June 2019 - T104 - From 2:00 pm to 3:15 pm


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Speaker: Adriano Rampini

23 May 2019 - T105 - From 2:00 pm to 3:15 pm


Finance

Speaker: Luke Taylor

16 May 2019 - T105 - From 2:00 pm to 3:15 pm


Finance

Speaker: Jessica Jeffers

18 April 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Emil Verner

4 April 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Niels Gormsen

28 March 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Ramona Dagostino

14 March 2019 - T104 - From 2:00 pm to 3:15 pm


title : TBA

Economics & Decision Sciences

Speaker: Harry Di Pei
Northwestern

12 February 2019


title : TBA

Economics & Decision Sciences

Speaker: François Geerolf
UCLA

18 December 2018


title : TBA

Economics & Decision Sciences

Speaker: Marko Tervio
Aalto

13 December 2018



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