Issue 2

Volume 35 JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
Spring 2026

Local Networks and New Business Formation

Lena Füner, Marius Berger, Johannes Bersch, Hanna Hottenrott
New business formation is a key driver of regional transformation and development. While we know that a region's attractiveness for new businesses depends on its resources, infrastructure, and human capital, we know little about the role of local business networks in promoting or impeding the birth of new firms.

Innovation Diffusion Among Case-Based Decision-Makers

Benson Tsz Kin Leung
This paper analyzes a model of innovation diffusion with case-based individuals a la Gilboa and Schmeidler, who decide whether to consume an incumbent or a new product based on their and their social neighbors' previous consumption experiences.

Protecting Intermediate Innovations When Ideas Are Scarce: Patents or Secrecy?

Bonwoo Koo, Jangho Yang, Brian D. Wright
Patenting an intermediate research innovation can lead to competition for the development of a final commercial innovation and potentially induce wasteful duplicative R&D efforts. This study examines the effects of different protection strategies and patent life on the incentives to protect an intermediate innovation by considering a two-stage sequential innovation model.

Bank Capital and Misconduct Incentives

Jacob Seifert
This paper studies large banks' incentives to engage in misconduct by abusing their dominant position in the market for loans and by mis-selling an add-on financial product to depositors.