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Article
The reset premium: Option value under asymmetric price commitment

We show that a one-sided price-adjustment rule, with free price cuts but a fixed daily reset for price increases, raises the reset price even under risk neutrality, mean-zero wholesale cost shocks, and perfect consumer information. The mechanism is option-theoretic: a higher reset price preserves pass-through in adverse cost states, while favora…

Economics
By Harry J. Paarsch and Karl Schmedders
in Economic Letters
September 2026, vol. 268, 113146, https://doi.org/10.1016/j.econlet.2026.113146
The reset premium: Option value under asymmetric price commitment
By Harry J. Paarsch and Karl Schmedders
in Economic Letters September 2026, vol. 268, 113146, https://doi.org/10.1016/j.econlet.2026.113146
Summary
We show that a one-sided price-adjustment rule, with free price cuts but a fixed daily reset for price increases, raises the reset price even under risk neutrality, mean-zero wholesale cost shocks, and perfect consumer information. The mechanism is option-theoretic: a higher reset price preserves pass-through in adverse cost states, while favora…
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Article
The tragedy of the horizon: A contracting account

The “tragedy of the horizon” captures the gap between long-horizon climate damages and the shorter horizons of corporate decision-making. We provide a contracting account of this idea using a deliberately standard CARA-normal moral-hazard model. Under full commitment, the optimal linear contract can condition on long-horizon outcomes; horizon mi…

Finance Economics
By Christos Cabolis and Karl Schmedders
in Economic Letters
September 2026, vol. 268, 113154, https://doi.org/10.1016/j.econlet.2026.113154
The tragedy of the horizon: A contracting account
By Christos Cabolis and Karl Schmedders
in Economic Letters September 2026, vol. 268, 113154, https://doi.org/10.1016/j.econlet.2026.113154
Summary
The “tragedy of the horizon” captures the gap between long-horizon climate damages and the shorter horizons of corporate decision-making. We provide a contracting account of this idea using a deliberately standard CARA-normal moral-hazard model. Under full commitment, the optimal linear contract can condition on long-horizon outcomes; horizon mi…
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Research Information & Knowledge Hub for additional information on IMD publications

Article
Nokia spent hundreds of millions trying to beat the iPhone. Its real problem was a 48-hour wait

Risto Siilasmaa had built software companies. That’s why the numbers in front of him didn’t add up. He joined Nokia’s board in 2008, the year after the iPhone was released. Nokia was still the largest phone maker on earth, and its Symbian operating system still ran more smartphones than anything Apple or Google had shipped. Risto was the only bo…

Artificial Intelligence
By Howard H. Yu
in Inc.
10 August 2026
Nokia spent hundreds of millions trying to beat the iPhone. Its real problem was a 48-hour wait
By Howard H. Yu
in Inc. 10 August 2026
Summary
Risto Siilasmaa had built software companies. That’s why the numbers in front of him didn’t add up. He joined Nokia’s board in 2008, the year after the iPhone was released. Nokia was still the largest phone maker on earth, and its Symbian operating system still ran more smartphones than anything Apple or Google had shipped. Risto was the only bo…
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Research Information & Knowledge Hub for additional information on IMD publications

Article
The yin and yang: Utility and reform perspectives on social impact in social entrepreneurship research

Positive social impact is the aspirational raison d’être of social entrepreneurship, driving its mission and actions, yet it remains theoretically ambiguous across the academic literature. This systematic integrative review identifies two distinct perspectives through which social impact is theorized in social entrepreneurship research: social i…

Entrepreneurship
By Georgios Polychronopoulos, Martin Lukeš, Siddharth Vedula and Sophie Bacq
in Journal of Business Venturing
9 August 2026, ePub before print, https://doi.org/10.1016/j.jbusvent.2026.106630
The yin and yang: Utility and reform perspectives on social impact in social entrepreneurship research
By Georgios Polychronopoulos Martin Lukeš Siddharth Vedula and Sophie Bacq
in Journal of Business Venturing 9 August 2026, ePub before print, https://doi.org/10.1016/j.jbusvent.2026.106630
Summary
Positive social impact is the aspirational raison d’être of social entrepreneurship, driving its mission and actions, yet it remains theoretically ambiguous across the academic literature. This systematic integrative review identifies two distinct perspectives through which social impact is theorized in social entrepreneurship research: social i…
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Research Information & Knowledge Hub for additional information on IMD publications