Management Science Review

Service sectors are very labor intensive – they hire millions of workers, but generally suffer from low labor productivity (about three fourth of the productivity of industry sectors). Effective team management has the potential to serve as a powerful operational lever to improve labor productivity, not only because service workers often work in teams/groups, but also because effective teams often create value more than the sum of their individual parts.

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Much of the literature on oligopolistic competition typically features firms operating in a single, well-defined, and isolated market. In practice though, firms compete with one another across several different geographical or product markets. In fact, there is strong empirical evidence that multi-market competition is prevalent in many industries (e.g., cement, healthcare, electricity, airlines, banking) and single-market models are far too limited to provide an accurate description of the strategic interactions in such environments.

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Why would a computer algorithm decide to show an ad promoting careers in the STEM sector (Science, Technology, Engineering and Math) to 20% more men than women? That is the question at the heart of a new article published in Management Science entitled, “Algorithmic Bias? An Empirical Study of Apparent Gender-Based Discrimination in the Display of STEM Career Ads”.

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The importance of customer demand on motivating supplier innovation has long been recognized, and feedback from customers plays a key role in this “demand-pull innovation” process. Timely reception of feedback, accurate interpretation of requests, and prompt adjustment in intermediate stages are critical to the ultimate success of innovation, and they all require frequent and intensive interactions between suppliers and customers. With the rapid development of transportation and communication tools, does locating closer to major customers remains an important determinant to suppliers’ innovation success nowadays? In “Corporate Innovation along the Supply Chain (June, 2019)”, Yongqiang Chu, Xuan Tian, and Wenyu Wang empirically investigate this question.

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Everybody loves Silicon Valley. Imitations can be found worldwide: Silicon Forest (Oregon), Swamp (Florida), Gorge (UK), Glen (Scotland), Fjord (Norway), Wadi (Israel), Savannah (Kenya), and many more. Policy makers, in particular, are eager to foster entrepreneurial ecosystems by promoting entrepreneurship, with the hope to foster economic growth, employment, and innovation. However, very different approaches can be taken by governments to achieve these goals. The question becomes how to foster entrepreneurship? This is the question asked by Thomas Hellmann and Veikko Thiele in their Management Science paper called “Fostering Entrepreneurship: Promoting Founding or Funding?”

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The value of high-income individuals’ time can make it inefficient to volunteer. The time spent volunteering could be used to increase earnings that are then donated, with the charity benefitting from that donation more than the value of the time. A high-priced consultant sweeping the floors in a soup kitchen could have earned enough to pay for a janitor and much more.

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A growing number of hospitals in different countries have begun posting the waiting times at their emergency department (ED). This information is given on website, billboards, and smartphone apps. While the initial motivation to provide this information is to showcase their commitment to good quality of care, from the operational perspective, showing people the wait times may also impact patients’ choice and subsequently affect system performance. In particular, if patients care about the waiting time and tend to choose strategically the hospital with a shorter ED delay, one expects that the load among different hospitals in the same neighborhood will be more balanced. This increased coordination in the network can lead to substantial performance improvement for the hospitals network.

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The aftermath of the 2008-09 financial crisis witnessed one of the most active periods of regulatory intervention in U.S. financial history since the New Deal. Since then, considerable doubts have been raised on the negative welfare consequences of some of these regulations. One of the most controversial issue was bond market liquidity. Many expressed concerns that market liquidity in fixed-income markets had deteriorated because financial regulations such as the Volcker Rule and the Basel III banking regulation constrained banks’ ability to provide liquidity. In “Regulation and Market Liquidity, Management Science (May, 2019)”, Francesco Trebbi and Kairong Xiao empirically investigate this claim.

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Nobody likes to wait, especially when suffering from a potentially life-threatening condition that requires immediate intervention. Yet millions of patients face this fate even in the most developed countries. Across the 145.6 million annual Emergency Department (ED) visits in the US, patients wait on average 2.25 hours, and even patients with broken bones wait an excruciating 50 minutes on average before they are given any pain medication. Perhaps more worryingly, close to 2% of the patients leave the ED because of long wait times before getting any treatment.

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Prior to the onset of the 2007/2008 financial crisis, Larry Summers remarked that "changes in the structure of financial markets have enhanced their ability to handle risk in normal times" but that "some of the same innovations that contribute to risk spreading in normal times can become sources of instability following shocks to the system." (Financial Times, December 26, 2006). Since the financial crisis, understanding what structural changes can open the door to financial instability has become of paramount relevance.

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