IMD business school for management and leadership courses
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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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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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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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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