Microeconomics
Articles tagged with Microeconomics
AI measures business complexity
A new AI model helps measure business complexity by breaking it down into 29 categories, including debt, equity, and financial structures. The tool can identify areas of complexity that require closer analysis for investors and provide insights for standard setters and regulators to simplify reporting standards.
Industrial research labs were invented in Europe but made the U.S. a tech superpower
A new study reveals that US industrial research labs played a crucial role in the country's rise as a technological superpower in the 1920s. The labs, which emerged during World War I, shifted from craftsmanship-based to science-based innovation, enabling teamwork and novel technology combinations.
Support stops at the checkout line: Consumer stigma undermines ‘impact hiring’ initiatives
A new study reveals that consumers who morally support companies hiring homeless individuals often drop purchase intentions due to irrational 'contagion concerns', triggered by emotional reactions linked to stereotypes about hygiene and safety. Social proof appeals can counteract this bias, increasing purchase likelihood.
Left in the cold: Study finds most renters shut out of energy-saving upgrades
A study by Binghamton University reveals that most renters in the US are unable to access energy efficiency improvements, leading to higher heating costs and poorer health. The 'split incentive' issue, where landlords prioritize profits over upgrades, is a major barrier to change.
Danish chemist's invention could make counterfeiting a thing of the past
A new digital and legally binding fingerprint developed at the University of Copenhagen makes products impossible to counterfeit. Royal Copenhagen is among the first brands in the world to use this solution, resulting in immediate transparency across their distribution chain.
Study: Arrival of boll weevils in U.S. South in early 20th century brought long-term benefits for Black sons born after the agricultural shock
A new study found that the arrival of boll weevils in the US South in the early 20th century led to improved economic outcomes for Black sons born after the agricultural shock. The researchers examined changes in earnings, occupations, and residences for Black males before and after the boll weevil's appearance.
Concealed deals drive up 401(k) fees
A new study reveals that many 401(k) plans include mutual funds with higher fees and lower performance due to revenue-sharing deals with plan administrators. Employees may unknowingly invest in these funds, leading to lost returns over time.
California surface water costs triple during drought
A new University of California, Davis study finds that drought in California pushes the price of water from rivers, lakes, and reservoirs up by $487 per acre-foot, more than triple the cost during an average wet year. Managing groundwater and surface water together could keep water prices steady and support the state's economy.
What is the extent of disparities in cancer clinical trials among low- and middle-income countries?
A recent study published in CANCER found that the number and complexity of cancer clinical trials have varied greatly across low- and middle-income countries (LMICs) since 2001. While economic growth has been a contributing factor, it is not the sole determinant of cancer clinical trial growth among LMICs.
When Washington tried to starve industries of loans—and failed
A study found that Operation Choke Point, launched in 2013, failed to restrict credit for controversial industries. Targeted banks reduced lending to small businesses, but large companies continued to secure credit and even increased their borrowing. Firms responded by switching to non-targeted banks, rendering the operation ineffective.
National study finds energy bills hit minority households the hardest
A new national study finds that African American and Latin American households pay significantly higher percentages of their income on energy, even when accounting for income. The study attributes this to factors such as older homes and higher rental rates, which exacerbate energy burdens and make it harder to access affordable upgrades.
Ateneo futurists envision AI-powered food stalls, sari-sari stores
The Ateneo de Manila University's Business Insights Laboratory explores how AI can turn handwritten sales logs into manageable digital data. The system uses OCR and LLM technology to recognize products, match prices, and tabulate sales summaries, helping businesses quickly identify bestsellers or slow-moving stock.
Counterfeited in China: New book assesses state of industry and its future
A new book by Rutgers University professor Ko-Lin Chin investigates the operations of illicit businesses in China's counterfeit industry. The author examines individual characteristics, economic aspects, relationships with organized crime, and demand for counterfeit goods.
Study reveals how fatal school shootings disrupt local economies
A new study reveals that fatal school shootings have far-reaching consequences, altering daily life and disrupting economies in affected communities for months. Anxiety about public safety drives a measurable decline in consumer activity, particularly in grocery stores and restaurants.
Health care workforce recovery after the end of the COVID-19 emergency
The health care workforce experienced decreased employment growth during the pandemic but fully recovered by 2024. This unique recovery is attributed to health care financing via insurance coverage that shielded health care employment from macroeconomic fluctuations.
Income inequality undermines support for higher minimum wages
Research by the American Psychological Association found that high levels of income inequality weaken support for higher minimum wages, as people infer that the rich should earn more than the poor. The study suggests that emphasizing the potential benefits of lower inequality could be a more effective approach to raising minimum wages.
Navigating financial uncertainty: How AI nudges can curb overdraft costs
A new study found that AI-driven reminders can significantly reduce overdraft fees, especially for users with fair to good credit. The research also highlights the importance of designing interventions that are both behaviorally informed and grounded in real-world financial constraints.
Higher wealth taxes equal less philanthropy
Higher wealth taxes significantly reduce charitable donations in Norway, according to new research from the University of Texas at Austin. The study finds that allowing larger income tax deductions can increase giving by 4.4%. This suggests a possible solution to soften the impact of wealth taxes on philanthropy.
UTA's 23 patents strengthen UT System's No. 3 National Academy of Inventors' ranking
The University of Texas at Arlington's 23 patents granted in 2024 helped boost the UT System's position among the nation's top innovators in patent technology. The UT System ranks No. 3 in the National Academy of Inventors' prestigious top 100 ranking.
Logistics service strategies in platform supply chains: a comprehensive perspective
A systematic review of platform supply chain logistics service strategies reveals the importance of service cost and level in choosing between self-built and third-party logistics. Shared logistics sharing also offers an innovative resource-sharing model with multiple companies.
Artificial intelligence is an effective tool in exploring corporate reporting
A new machine learning-based method analyzes corporate reporting for responsibility and innovation, providing insights into company actions. Essi Nousiainen's research also explores blockchain-related trends in corporate reports.
Study documents impacts of large-scale entry of rooftop solar panels on competition
A dynamic framework to measure market power in wholesale electricity markets has been developed by researchers, accounting for start-up costs and other unit-level operating constraints. The study found that rooftop solar penetration increases led to sizable boosts in fossil fuel plant profitability, as competition softened at sunset.
AI in retail: how to spark creativity and improve job satisfaction
A study by researchers from Florida Atlantic University and Hanyang University explores how AI service quality affects retail employees' innovation, job fit, and job satisfaction. The results suggest that employees are more likely to engage in innovative behaviors when they perceive benefits from AI interactions.
WVU research shows buyers believe karma, not boycotts should punish brands for bad behavior
Research by West Virginia University expert Kylie Vo found that consumers who believe in karma are more likely to forgive companies that behave immorally and less likely to boycott them. In contrast, non-moral transgressions like defective products or misleading claims can severely damage consumer-brand relationships and brand value.
Study of 16 years of US-Canada free trade agreement finds that workers were not hurt by freer trade
A 16-year study of the US-Canada free trade agreement found that workers were not harmed by increased trade between the two countries. Canadian workers quickly adjusted to changing labor demand and transitioned to new industries, benefiting from larger U.S. tariff cuts.
Strategic corporate social responsibility can create social, economic value
Researchers at Penn State developed a strategic framework to optimize CSR activities, finding that directly related initiatives create both social and business value. The four-component framework focuses on shared value, enlightened stakeholder theory, resource-based theory, and CSR-fit perspective.
What to do with aging solar panels?
A three-year project aims to proactively ensure circularity of solar panels by providing solutions to barriers throughout the supply chain. The team will develop reverse logistics models and next-generation data-driven supply chains for recycling solar panels and reusing critical materials like silicon and silver.
WVU legal scholar makes case for equal protection among different medication classes
A West Virginia University legal scholar argues that current laws favor biologic drugs with longer exclusivity periods, affecting their pricing. The scholar suggests reducing exclusivity for biologics to bring them in line with small-molecule drugs, which could lower drug costs.
New professorship for artificial intelligence in business informatics
Kevin Bauer's new professorship at Goethe University Frankfurt aims to understand human-machine interaction and promote responsible AI research. His research focuses on the psychological and organizational factors determining the efficiency and quality of collaboration between humans and machines.
Composting aquatic plant battles parasite, boosts incomes in Senegal
Researchers found that composting aquatic vegetation simultaneously eradicates habitat for disease-carrying snails while improving agricultural output and increasing incomes in northern Senegal. The finding has the potential to aid rural residents caught in a vicious cycle of poverty and disease.
Miracle, or marginal gain?
A study by MIT economists suggests that industrial policy has a relatively limited impact on GDP growth, with average long-run gains of 1.08% in favorable circumstances. The research indicates that local consumer demand can curb the impact of industrial policy, putting a ceiling on directed growth.
How retailers change ordering strategy when a supplier starts its own direct channel
A study of nearly 2,000 retailers reveals that they tend to disengage from supplier relationships when a direct channel is introduced. This results in a decrease in the number of SKUs ordered and an increase in wholesale prices, with total order value decreasing by €399.50.
WVU leading new center to bolster cybersecurity for businesses, train students
The Cyber-Resilience Resource Center will provide training and support to organizations across West Virginia, with a focus on small and medium-sized businesses. Over 200 students will gain real-world cybersecurity experience through the center.
WVU researchers say colleges barred from throwing money at student-athletes are offering them multimillion-dollar coaches instead
Researchers found that colleges offer multimillion-dollar coaches instead of throwing money at student-athletes, leading to an arms race in athletics. The study revealed a significant correlation between head coach salaries and team recruitment success, with higher salaries associated with better teams and more victories.
Political connections fuel innovation in emerging markets, but talent makes the difference
A new study from the University of Surrey reveals that political connections can drive innovation in emerging markets, but only with highly skilled employees. The research analyzed over 3,200 Chinese-listed businesses and found that companies with talented teams can better utilize resources and knowledge from political connections, lea...
Decoding cryptocurrency regulation in the legibility framework
Researchers propose a new 'legibility' framework to understand cryptocurrency governance, revealing stages of illegibility, contested legibility, and collaborative legibility. The study examines the US, EU, and Japan's markets, showing they progressed through these states at different rates.
Proposed reporting system could help avert bank runs
A proposed reporting system could help prevent future bank crises by providing regulators with detailed disclosure of both good and bad news. The system would shield less risky banks from runs while spotlighting the riskiest ones, protecting them from panic-driven withdrawals.
Regulatory tech costs can have benefits, too
A new study by Zachary Kowaleski found that RegTech investments can have operational benefits for large broker-dealers, including improvements in customer relations and employee monitoring. However, small companies were more negatively affected, with profits dropping by an average of over 10 times the apparent savings.
UK automotive industry vulnerability revealed – new Aston University research
The UK is heavily exposed to the electric vehicle (EV) revolution due to its critical dependency on battery imports, with imports exceeding exports by 10.5 times. The Aston University report outlines a four-point plan to fortify the UK's presence in the global EV market.
More is not always better
A new framework demonstrates that proportionately more multi-homing consumers lead to significant efficiency gains when integrating two business platforms. However, this trend also creates higher barriers to entry for new platform firms and may require policy guidance to mitigate potential harms of platform mergers.
Online grocery shopping promotes less variety, fewer impulse buys
A Cornell University study found that online grocery carts have less variety and fewer fruits and vegetables than in-store carts, with more overlapping items between successive trips. However, online shoppers are less susceptible to unhealthy impulse buys.
Growth of large operators threatens existence of grassroots coworking spaces, study warns
A new study warns that grassroots community-oriented coworking spaces are under threat from large operators, which are changing the business models and strategies of coworking space owners. The study found that smaller operators struggle to compete due to lack of financial independence and diversification.
Ukraine refugees could boost Europe’s GDP
New research suggests Ukrainian refugees can improve long-term GDP in European countries investing in capital improvements. Low-skill workers and owners of capital benefit in the short term, while high-skill workers face competition for jobs.
How to protect consumers from deceptive comparison pricing
A new study by Duke University, University of Notre Dame, and Microsoft proposes a solution to reduce deceptive comparison pricing: requiring firms to disclose their true normal price. The study finds that providing this information can moderate the effect of advertised regular prices on consumer behavior.
Having daughters might not move politicians’ votes on women’s issues to the left, after all
A new study finds that having daughters has little to no effect on legislators' roll call votes on women's issues. The researchers analyzed a large dataset and replicated previous findings, suggesting that partisanship may have taken precedence over family influences as political polarization increased.
Assessing the impact of going off-grid on transmission charge and energy market outcomes
A team of researchers found that prosumers, who produce their own electricity, can lower transmission charges when generating less energy. However, when producing a large amount of renewable energy, transmission charges increase. The study suggests levying a per-MWh tax on prosumer consumption to reduce the likelihood of death spirals.
ProSocial World: How the principles of evolution can create lasting global change
A new article by David Sloan Wilson explores how cultural evolution happens and how it can be harnessed for the greater good. The article highlights the importance of prosociality, social control, and symbolic thought in shaping human societies.
Research shows success of working from home depends on company health
Research by University of Missouri expert Naresh Khatri shows that companies with effective HR and IT departments thrive when allowing employees to work from home. Employees can complete collaborative tasks with similar quality and quantity, regardless of location.
Heritage and culture key for Thai confectioners to compete with western brands.
A new study suggests that Thai confectioners can gain a competitive advantage by using their country's local heritage and culture. The research found that youngsters in Thailand still enjoy local confectionary as well as Western brands, but local products have strong emotional value to them.
HKU Business School examines the effectiveness and implications of the talent recruitment programs
The study found that YTT recruits were of high caliber, with many coming from global top-100 PhD programmes. They recorded a noticeably higher post-return productivity compared to their overseas peers, mainly due to access to greater funding and research teams in China.
In the case of brand name drugs versus generics, patents can be bad medicine, WVU law professor says
Patent thickets and evergreening strategies hinder generic competition, leading to higher brand name drug prices. Generic entry can drop prices by 90%, affecting patient welfare. Patent expert Sean Tu advocates for a balanced patent system that promotes innovation while preventing monopolies.
Study: Automation drives income inequality
A new study finds that automation has contributed significantly to the growth in income inequality in the US, with 50-70% of the increase attributed to technological changes. The study analyzed data from 49 industries and 500 demographic subgroups, finding that automation has disproportionately affected low-skill service workers.
High-end hotels manipulate reviews when competing with Airbnb
Researchers found high-end hotels inflate their ratings on platforms like Tripadvisor and Expedia when facing greater competition from Airbnb. The study, published in MIS Quarterly, suggests that hotels use fake positive reviews to counter negative reviews from rival hotels., Low-end hotels remain unaffected by Airbnb's presence.
Effective communication in automobile recalls encourages corrective action among American drivers, finds Pusan National University researcher
A recent study by Prof. Yong-Kyun Bae found that recall letters with riskier defects and 'free of charge' notices prompt quicker corrective actions. The research highlights the need for effective, standardized communication in recall letters to improve public safety.
Recent research shows when the interests of firms and employees might diverge
Collaborations between firms with the same partner can hurt company success, but help employees develop social capital and advance their careers. Employees often benefit from these connections, which can lead to better job opportunities and skill development.
How disclosing advertising spending can reduce investor and analyst uncertainty and possibly enhance firms' valuation
A new study found that disclosure of advertising spending significantly lowers investor and analyst uncertainty, enhancing firms' valuation. The study analyzed 2,285 publicly listed firms over 25 years and found a moderate negative effect on idiosyncratic risk.
Sweetened beverage taxes produce net economic benefits for lower-income communities
A new study from the University of Washington found that sweetened beverage taxes redistribute dollars from higher- to lower-income households, providing a net economic benefit of $5.3 to $16.4 million per year to lower-income communities. The taxes also fund health programs and reduce consumption of unhealthy drinks.
Banning unhealthy products in plea for public health has financial downfalls for retailers
New research in Marketing Science reveals that banning tobacco products can result in a 4% decline in gross sales for retailers. The study also suggests that the impact of such bans can be felt across other unhealthy product categories, affecting overall store revenue.
Using microeconomics to design a framework for institutions
Researchers aim to create guidelines for effective institutions by addressing key issues like information asymmetry and moral hazard. They propose six robustness requirements to improve institutional performance.