New Realities

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 i...

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. U...

China’s export boom is reach­ing its lim­its. The coun­try’s next phase of growth will come not from ship­ping more goods abroad, but from export­ing its factor­ies, tech­no­lo­gies and brands. China is run­ning up against the lim­its of its old m...

Over the past years profound changes in the public sentiment and policy environment suggest the beginning of a new era with reversal attitudes towards globalization. Deglobalization which is commonly defined as the process of decreasing interdepen...

The latest US tariffs on 60 countries announced this week underline that trade barriers are becoming an increasingly persistent feature of the global economy, rather than a temporary disruption. The news that DP World is planning to build a new po...