Roy Sasson’s research while affiliated with Tel Aviv University and other places

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Publications (3)


Termination Risk and Agency Problems: Evidence from the NBA
  • Article

November 2018

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38 Reads

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3 Citations

Journal of Law Economics and Organization

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Nadav Levy

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Roy Sasson

When agents with a significant risk of termination in the short term have discretion over project selection, they may have incentives to underinvest in projects whose results would be realized only in the long term, and owners may take this agency problem into account when deciding whether to grant those agents discretion in decision-making. Because NBA rookies who participate in games gain NBA experience that likely improves their long-term performance, decisions of NBA teams about whether to let rookies play provide a useful context for investigating this potential agency problem. We develop a model that identifies when owners will choose to leave coaches with discretion over rookie participation decisions and shows that, in the presence of such discretion, coaches facing a higher termination risk can be expected to use rookies less often. Testing our model using NBA data, we find evidence that is consistent with the predictions of our model. © The Author(s) 2018. Published by Oxford University Press on behalf of Yale University. All rights reserved.


The 1st International Workshop on Temporal Reasoning in Recommender Systems

August 2017

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18 Reads

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1 Citation

The workshop focus is on considering temporal aspects for recommender systems in general, regardless of the specific domain and application, trying to develop a holistic approach for dealing with temporal aspects in recommender systems, like personal assistants, news, tourism, health care, TV, e-commerce, social networks and so on.


Termination Risk and Agency Problems: Evidence from the NBA

January 2015

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12 Reads

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5 Citations

SSRN Electronic Journal

When organizational structures and contractual arrangements face agents with a significant risk of termination in the short term, such agents may under-invest in projects whose results would be realized only in the long term. We use NBA data to study how risk of termination in the short term affects the decision of coaches. Because letting a rookie play produces long-term benefits on which coaches with a shorter investment horizon might place lower weight, we hypothesize that higher termination risk might lead to lower rookie participation. Consistent with this hypothesis, we find that, during the period of the NBA’s 1999 collective bargaining agreement (CBA) and controlling for the characteristics of rookies and their teams, higher termination risk was associated with lower rookie participation and that this association was driven by important games. We also find that the association does not exist for second-year players and that the identified association disappeared when the 2005 CBA gave team owners stronger incentives to monitor the performance of rookies and preclude their underuse.

Citations (2)


... In the next section, we explain the dataset and empirical methodology we employ, followed by our 1. See for example, Cohen et al. (2018) and Peeters et al. (2020) for analyses of managerial discretion and performance using data from US basketball and baseball. main empirical results. ...

Reference:

The Survival of Mediocre Superstars in the Labor Market
Termination Risk and Agency Problems: Evidence from the NBA
  • Citing Article
  • November 2018

Journal of Law Economics and Organization

... Most closely related to the topic of this paper, Cohen et al. (2018) demonstrate that agents (managers) have an incentive to underinvest in human resource development when facing a termination risk as they do not benefit from returns. Specifically, they show that the use of rookies (i.e., a player in the first year of activity) decreases in the coach's risk of losing his job. ...

Termination Risk and Agency Problems: Evidence from the NBA
  • Citing Article
  • January 2015

SSRN Electronic Journal