-
Academic Journal
-
Journal of Business; Jul2005, Vol. 78 Issue 4, p1111-1135, 25p, 2 Charts, 3 Graphs
-
Almost 50 prominent business schools were "named" in the 1980s and 1990s, in exchange for sizable donations. We view this as an interesting example of the exhaustible resource market examined in Hotelling (1931). Schools face a trade-off that involves a possible benefit from waiting (to receive a larger gift) against the (opportunity) cost of delay. We find schools wait to accept a name until the annualized rate of increase in offered gifts is around 5%, in keeping with Hotelling's principle and a market in school names. We also find, generally, lower-ranked schools receive smaller gifts and delay their namings longer. [ABSTRACT FROM AUTHOR]
Additional Information
Copyright of Journal of Business is the property of University of Chicago Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)