Ezra W. Zuckerman

The Categorical Imperative: Securities Analysts and the Illegitimacy Discount

This article explores the social processes that produce penalties for illegitimate role performance. It is proposed that such penalties are illuminated in markets that are significantly mediated by product critics. In particular, it is argued that failure to gain reviews by the critics who specialize in a products intended category reflects confusion over the products identity and that such illegitimacy should depress demand. The validity of this assertion is tested among public American firms in the stock market over the years 1985–94. It is shown that the stock price of an American firm was discounted to the extent that the firm was not covered by the securities analysts who specialized in its industries. This analysis holds implications for the study of role conformity in both market and nonmarket settings and adds sociological insight to the recent “behavioral” critique of the prevailing “efficient‐market” perspective on capital markets.

Middle‐Status Conformity: Theoretical Restatement and Empirical Demonstration in Two Markets1

This article aims to reestablish the long‐standing conjecture that conformity is high at the middle and low at either end of a status order. On a theoretical level, the article clarifies the basis for expecting such an inverted \documentclass{aastex} \usepackage{amsbsy} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{bm} \usepackage{mathrsfs} \usepackage{pifont} \usepackage{stmaryrd} \usepackage{textcomp} \usepackage{portland,xspace} \usepackage{amsmath,amsxtra} \usepackage[OT2,OT1]{fontenc} \newcommand\cyr{ \renewcommand\rmdefault{wncyr} \renewcommand\sfdefault{wncyss} \renewcommand\encodingdefault{OT2} \normalfont \selectfont} \DeclareTextFontCommand{\textcyr}{\cyr} \pagestyle{empty} \DeclareMathSizes{10}{9}{7}{6} \begin{document} \landscape

Robust Identities or Non-Entities? Typecasting in the Feature Film Labor Market

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What makes you think you're so popular? Self-evaluation maintenance and the subjective side of the friendship paradox

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Peer Capitalism: Parallel Relationships in the U.S. Economy1

The issue of corporate control is examined through an analysis of the de-diversification activity of publicly held American firms from 1985 to 1994. Prominent accounts of such behavior depict newly powerful shareholders as having demanded a dismantling of the inefficient, highly diversified corporate strategies that arose in the late 1950s and the 1960s. This paper highlights an additional factor that spurred such divestiture: the need to present a coherent product identity in the stock market. It is argued that because they straddle the industry categories that investors—and securities analysts, who specialize by industry—use to compare like assets, diversified firms hinder efforts at valuing their shares. As a result, managers of such firms face pressure from analysts to dediversify so that their stock is more easily understood. Results indicate that, in addition to such factors as weak economic performance, de-diversification is more likely when a firms stock price is low and there is a significant mismatch between its corporate strategy and the identity attributed to the firm by analysts.

Nasty, Brutish, and Short: Embeddedness Failure in the Pharmaceutical Industry

This article addresses two seemingly incompatible claims about identity: (a ) complex, multivalent identities are advantageous because they afford greater flexibility versus (b) simple, focused identities are advantageous because they facilitate valuation. Following Faulkner, it is hypothesized that a focused identity is helpful in gaining entrée into an arena but subsequently leads to increasing limitations. The labor market for feature‐film actors is analyzed via career patterns recorded in the Internet Movie Database and interviews with key informants, allowing the article to distinguish between typecasting effects and those due to underlying skill differences or social networks. Important implications are drawn for research on identity formation in various social arenas, on categorical boundaries in external labor markets, and on the actor‐position interplay inherent in market dynamics.

A Structural Theory of Vote Choice: Social and Political Networks and Electoral Flows in Britain and the United States

Why are some diversified market identities problematic but others are not? We examine this question in the context of high-status corporate law firms, which often diversify into one low-status area of work—family law (FL)—but face a barrier (strong disapproval from existing clients) that prevents diversification into another such area—plaintiffs’ personal injury law (PIL). Drawing on a qualitative study of the Boston legal market, we argue that this barrier reflects a situation where loyalty norms have been violated, and it surfaces because service to individual plaintiffs is tantamount to betraying the interests of corporate clients. Our analysis clarifies identity-based limits to diversification, indicating that they are rooted in concerns about the firm’s commitments as well as its capabilities, and suggests a more general refinement of theory on status and conformity.

On Networks and Markets by Rauch and Casella, eds.

We report on a survey of undergraduates at the University of Chicago in which respondents were asked to assess their popularity relative to others. Popularity estimates were related to actual popularity, but we also found strong evidence of self-enhancement in self-other comparisons of popularity. In particular, self-enhancement was stronger for self versus friend comparisons than for self versus typical other comparisons; this is contrary to the reality demonstrated in Felds friendship paradox and suggests that people are more threatened by the success of friends than of strangers. At the same time, people with relatively popular friends tended to make more self-serving estimates of their own popularity than did people with less popular friends. These results clarify how objective patterns of interpersonal contact work together with cognitive and motivational tendencies to shape perceptions of ones location in the social world.