Issue 1

Volume 33 JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
Spring 2024

The impact of artificial intelligence design on pricing

John Asker, Chaim Fershtman, Ariel Pakes
The behavior of artificial intelligence (AI) algorithms is shaped by how they learn about their environment. We compare the prices generated by AIs that use different learning protocols when there is market interaction.

What innovation paths for AI to become a GPT?

Timothy Bresnahan
Early commercial applications of artificial intelligence technologies (AITs) were narrow but extremely profitable. Comparable uses of those technologies throughout the economy would lead to a growth boom.

Artificial intelligence adoption and system-wide change

Ajay Agrawal, Joshua S. Gans, Avi Goldfarb
Analyses of artificial intelligence (AI) adoption focus on its adoption at the individual task level. What has received significantly less attention is how AI adoption is shaped by the fact that organizations are composed of many interacting tasks.

M&A and technological expansion

Ginger Zhe Jin, Mario Leccese, Liad Wagman
We examine how public firms listed in North American stock exchanges acquire technology companies during 2010–2020.

Augmenting physicians with artificial intelligence to transform healthcare: Challenges and opportunities

Ritu Agarwal, Michelle Dugas, Guodong (Gordon) Gao
We reflect on the progress and prospects of artificial intelligence (AI)-powered transformation in healthcare from the perspective of front-line clinical professionals responsible for care delivery. While there is considerable optimism about the potential of AI, critical gaps in understanding remain that represent fruitful opportunities for economics and management scholars.

AI adoption in America: Who, what, and where

Kristina McElheran, J. Frank Li, Erik Brynjolfsson, Zachary Kroff, Emin Dinlersoz, Lucia Foster, Nikolas Zolas
We study the early adoption and diffusion of five artificial intelligence (AI)-related technologies (automated-guided vehicles, machine learning, machine vision, natural language processing, and voice recognition) as documented in the 2018 Annual Business Survey of 850,000 firms across the United States.

The rise of empirical online platform research in the new millennium

Hsing Kenneth Cheng, D. Daniel Sokol, Xinyu Zang
Online platforms have emerged as a dominant business model in numerous industries in the new millennium. In light of the substantial and burgeoning body of empirical platform research, this article synthesizes extant studies and identifies the evolution of underlying research methodologies and topics.

The challenges of using ranks to estimate sales

Stan J. Liebowitz, Alejandro Zentner
Researchers have frequently used data on product ranks to estimate nonpublic sales quantities, believing that there is a power-law-induced linear relationship between logged sales ranks and logged sales.

Price promotions as a threat to brands

Roman Inderst, Martin Obradovits
Manufacturers frequently resist heavy discounting of their products by retailers. Since low prices should increase demand and manufacturers could simply refuse to fund deep price promotions, such resistance is puzzling at first sight.

Less is more: A theory of minimalist luxury

Z. Jessie Liu, Pinar Yildirim, Z. John Zhang
We show theoretically that when high-quality, low-price counterfeits exist and are visibly indistinguishable from authentic products, the status-seeking wealthy may embrace a “less is more” purchasing strategy or what we refer to as the minimalist luxury strategy, to signal their status.

Monopoly pricing with dual-capacity constraints

Robert Somogyi
This paper studies the price-setting behavior of a monopoly facing two capacity constraints: one on the number of its consumers, and the other on the amount of products it can sell.

Postsearch uncertainty, product heterogeneity, and price divergence

Yijuan Chen, Xiangting Hu, Sanxi Li
We develop a consumer search model in which consumers may remain uncertain about product quality even after inspecting the product. We first consider the postsearch uncertainty regarding vertical quality, and characterize the separating equilibrium in which firms with different quality levels charge different prices.