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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
Why productivity is falling despite working more than ever

We have been sold a seductive myth: that the more hours we work, the more productive we become. Stay online longer. Reply faster. Be available at all times. Push harder. Sleep later. Wear exhaustion like a badge of honour. In many industries, this has become the modern script for success. Yet across much of the developed world, the opposite has …

Workplace Well-being
By Andrew Sharman
in Workplace Wellbeing Professional
5 August 2026
Why productivity is falling despite working more than ever
By Andrew Sharman
in Workplace Wellbeing Professional 5 August 2026
Summary
We have been sold a seductive myth: that the more hours we work, the more productive we become. Stay online longer. Reply faster. Be available at all times. Push harder. Sleep later. Wear exhaustion like a badge of honour. In many industries, this has become the modern script for success. Yet across much of the developed world, the opposite has …
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Research Information & Knowledge Hub for additional information on IMD publications

Article
This Harvard researcher’s warning about AI commerce should worry every CEO

Sometime last fall, in a cafe near the Bund in Shanghai, a woman picked up her phone. She did not open an app, nor did she scroll, read the reviews, compare restaurants, or check the delivery time. Instead, she spoke the following nine words: “Order my usual lunch; deliver it 20 minutes later.” The phone paused for about three seconds. An agent …

Artificial Intelligence Future Readiness
By Howard H. Yu
in Inc.
3 August 2026
This Harvard researcher’s warning about AI commerce should worry every CEO
By Howard H. Yu
in Inc. 3 August 2026
Summary
Sometime last fall, in a cafe near the Bund in Shanghai, a woman picked up her phone. She did not open an app, nor did she scroll, read the reviews, compare restaurants, or check the delivery time. Instead, she spoke the following nine words: “Order my usual lunch; deliver it 20 minutes later.” The phone paused for about three seconds. An agent …
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Research Information & Knowledge Hub for additional information on IMD publications