Strategy

The US government has a massive footprint on any US company that goes way beyond just the impact of tariffs. How the government chooses to use that influence can make or break the company. Read the full article on Forbes.com

How should an investor value financial data? The answer is complicated because it depends on the characteristics of all investors. We develop a sufficient statistics approach that uses equilibrium asset return moments to summarize all relevant information
about others’ characteristics. It can value data that is public or private, about one or many assets, relevant for dividends or for sentiment. While different data types, of course, have different valuations, heterogeneous investors also value the same data

In this letter, we summarize our recent work on the welfare impact of recommendation algorithms and propose questions for further study. We model recommendation algorithms as an information structure, which shapes how a third party takes actions that affect the welfare of different individuals in a population. Each recommendation algorithm thus induces a welfare profile, describing the expected payoffs of different individuals when the third party takes actions following the algorithm.

We aim to stimulate discussion on how innovation research within marketing can use a better world (BW) perspective to help innovation become a driver of positive change in the world. In this "Challenging the Boundaries" series paper, we hope to provide purposeful research opportunities for scholars seeking to bridge innovation research with the BW movement. We frame our discussion with four areas of innovation research in marketing that are particularly relevant to BW objectives.

In online advertising, advertisers purchase ad placements by participating in a long sequence of repeated auctions. One of the most important features that advertising platforms often provide and advertisers often use is budget management, which allows advertisers to control their cumulative expenditures. Advertisers typically declare the maximum daily amount they are willing to pay, and the platform adjusts allocations and payments to guarantee that cumulative expenditures do not exceed budgets.

Why do startups from mid-sized markets struggle to scale? This study theorizes that a local market that is big enough for a product to gain early traction but not big enough in which to scale can incentivize startups to delay expanding into new markets necessary for high-growth outcomes. This delay introduces adjustment costs that constrain growth.

The cyclically adjusted price-to-earnings ratio is now elevated. But should that lead you to exit the stock market? Perhaps not. The predictive power of CAPE has waned meaningfully in recent years.