Strategy

The rise of low-cost artificial intelligence (AI) technologies offers significant potential for businesses globally, yet AI adoption remains uneven. What shapes this unequal adoption? While prior work attributes adoption patterns to demand-side factors including physical costs and complementary assets, we theorize that AI entrepreneurs' strategic choice to target specific markets creates both search and perceived-fit frictions for firms outside of those markets.

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

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? We theorize that their home market is big enough to gain early traction, which incentivizes them to delay targeting new markets necessary for growth. This delay, however, allows adaptation costs to grow too large. We test this by exploring international expansions using interview and large-scale website language data of up to 20,000 software startups from around the world.

We present a dynamic two-country model in which military spending, geopolitical risk, and government bond prices are jointly determined. The model is consistent with three empirical facts: hegemons have a funding advantage, this advantage rises with geopolitical tensions, and war losers suffer from higher debt devaluation than victors.