Daniel Diermeier

Most theories of elections assume that voters and political actors are fully rational. While these formulations produce many insights, they also generate anomalies - most famously, about turnout. The rise of behavioral economics has posed new challenges to the premise of rationality. This groundbreaking book provides a behavioral theory of elections based on the notion that all actors - politicians as well as voters - are only boundedly rational. The theory posits learning via trial and error: actions that surpass an actor's aspiration level are more likely to be used in the future, while those that fall short are less likely to be tried later. Based on this idea of adaptation, the authors construct formal models of party competition, turnout, and voters' choices of candidates. These models predict substantial turnout levels, voters sorting into parties, and winning parties adopting centrist platforms. In multiparty elections, voters are able to coordinate vote choices on majority-preferred candidates, while all candidates garner significant vote shares. Overall, the behavioral theory and its models produce macroimplications consistent with the data on elections, and they use plausible microassumptions about the cognitive capacities of politicians and voters. A computational model accompanies the book and can be used as a tool for further research.

An insider’s guide to university finances, for non-insiders. The finances of higher education have never been more challenging. From two-year institutions to the Ivy Leagues, from department chairs to provosts, administrators face revenue shortfalls and financial insecurity. A fundamental understanding of financial management is more essential than ever for university leaders at every level—as is a true partnership between academic leaders and their CFOs. In Margin and Mission, Daniel Diermeier and Brett Sweet distill the principles for successful financial management in higher education, based on their work together at Vanderbilt University. Their concise, practical guide develops the reader’s understanding step-by-logical-step with the help of real-world examples. Margin and Mission aims to give university leaders, from board members to department chairs, the knowledge to make sound economic decisions that preserve their institutions’ purpose—even in the face of uncertainty.

Leverage your company’s most important asset! In our lightning-fast digital age, a company can face humiliation and possibly even ruin within seconds of a negative tweet or blog post. Over the last year companies such as BP, Goldman Sachs, and Toyota have experienced serious blows to their images that could have had reduced impact if their leaders had implemented reputation management into their business strategy and culture. There is no one in either the corporate or academic sphere with greater expertise in the area of corporate reputation than Dr. Daniel Diermeier. An award-winning professor at the Kellogg School of Management, Northwestern University, Dr. Diermeier has blazed a path in understanding the significance of reputation management and demonstrating how a company can create a program so powerful that it can help turn a potential public disgrace into a public image success story. Reputation Rules is a landmark work bringing to light Dr. Diermeier’s groundbreaking insights in this critical area. He offers the frameworks, strategies, and processes for changing your company’s focus as quickly as the world is changing around you. He touches on all of the reputational issues that need to be managed from a strategic level, describing how to:Overcome direct challenges from influential activist and political forcesManage corporate scandals, including executive compensationUse external, seemingly unrelated events to boost reputationBuild a reputation management process into everyday operationsIn addition, Dr. Diermeier provides case studies of Shell’s confrontation with Greenpeace, Mercedes’s recovery from the Moose crisis, AIG’s executive bonus fallout, Wal-Mart’s reputation-building response to Hurricane Katrina, and numerous other scenarios illustrating what works and what doesn’t when it comes to reputation management. Brimming with keen insights and lucid examples, Reputation Rules is a guidepost for your organization’s future—and a salve for crisis management.

A scientific approach to corporate reputation from the field’s leading scholar. Public opinion is a core factor of any organization’s success—and sometimes its failings. Whether through crisis, mismanagement, or sudden shifts in public sensibility, an organization can run afoul in the span of a Tweet. In Reputation Analytics, Daniel Diermeier offers the first rigorous analytical framework for understanding and managing corporate reputation and public perception. Drawing on his expertise as a political scientist and management scholar, Diermeier incorporates lessons from game theory, psychology, and text analytics to create a methodology that has immediate application in both scholarship and practice. A milestone work from one of social science’s most eminent scholars, Reputation Analytics unveils an advanced understanding of an elusive topic, resulting in an essential guide for academics and readers across industries.

The University that was at the heart of the research to discover the vaccines for the pandemic pens the story of how it all happened. In 2020, as COVID-19 threw the U. S. higher education system into turmoil, university administrators around the country debated whether it was prudent--or even possible--to teach students in person or conduct laboratory research amid a once-in-a-century pandemic. For the leadership at Vanderbilt University, the answer to the question was a resounding Yes. Viewing residential education and collaborative research as essential to its academic and societal mission, Vanderbilt was one of a small number of America's top universities to put rigorous safety protocols in place to allow students, faculty, and research personnel back to campus in the fall. Told with recollections and insights from Vanderbilt's leaders, students, faculty, and staff, and moving at a pace matching the events it describes, A Year Like No Other takes readers from Vanderbilt's near-shutdown in the spring through its reopening for the 2020-2021 academic year, providing an inside look at how the university coped not only with COVID-19, but also with a tragic night of tornadoes and the urgent calls for racial justice following the killing of George Floyd. A Year Like No Other also highlights some of the vital contributions that faculty at Vanderbilt and Vanderbilt University Medical Center have made to the development of COVID-19 vaccines and therapies, with research fueled in part by Dolly Parton, the beloved country music legend. A Year Like No Other captures a singular moment in the university's history while delivering a concise portrait of successful crisis management playing out amid the fast-changing circumstances of global health threats and a barrage of local hardships.

A firm's reputation is an asset that can be built or harmed over time and most companies invest in their good standing. This can be challenged or threatened by activists seeking to change the firm's behavior, especially to reduce negative externalities and other social harms that a company may be creating. The strategic interaction takes place in the realm of private politics and corporate social responsibility-perceptions and actions of the company, activists, and the public audience-rather than that of public policy, including regulation. In Corporate Reptutation and Social Activism Jose Miguel Abito, David Besanko, and Daniel Diermeier argue that harm to a firm's reputation is one of the strongest and most practical tools of contemporary corporate activism and explains the numerous campaigns as well as the response of companies. Through a straightforward dynamic model focusing on the interaction of the firm and activists, the authors show how both the firm's existing reputation and various activist tactics influence actions and outcomes of both the firm and the activists. Among their insights are that as a firm's reputation grows, it tends to coast on its reputation by reducing its private regulation, or voluntary adoption of internal rules that constrain certain company behavior. Activists can keep the firm from coasting in two ways: the firm acts more responsibly to protect its reputation in anticipation of activist campaigns, and a firm whose reputation is harmed by a campaign engages more responsibly to repair its reputation. The book explores how activists choose among potential targets and the different tactics activists can use to harm firms' reputations, including criticism, which has a potentially mild impact on the firm's reputation, confrontation, which can cause a reputational crisis in which the firm's reputation can be dramatically impaired, and rewards, which increase a firm's reputation. These can have different effects on firm behavior. The authors also examine whether campaigns by activists advance or harm social welfare. The result is a sweeping overview of an evolving and increasingly important phenomenon that combines rigorous modeling and that generates a rich set of empirical implications that will interest researchers in economics, business and management, sociology, and political science.