Publications

2016
Working Paper

Foreign Competition and Domestic Innovation: Evidence from U.S. Patents

By: David Autor, David Dorn, Gordon H. Hanson, Pian Shu and Gary Pisano

Manufacturing is the locus of U.S. innovation, accounting for more than three quarters of U.S. corporate patents. The rise of import competition from China has represented a major competitive shock to the sector, which in theory could benefit or stifle innovation. In... View Details

Keywords: Patents; Competition; System Shocks; Trade; Innovation and Invention; Manufacturing Industry; China; United States

19 Dec 2023
Research & Ideas

The 10 Most Popular Articles of 2023

life that includes rest, relationships, and a rewarding career. Is AI Coming for Your Job?In a post-AI world, where an algorithm can draft marketing copy—or even pop songs and movie scripts—anything seems possible. Harvard Business School... View Details

Keywords: by Danielle Kost

2021
Working Paper

Time Dependency, Data Flow, and Competitive Advantage

By: Ehsan Valavi, Joel Hestness, Marco Iansiti, Newsha Ardalani, Feng Zhu and Karim R. Lakhani

Data is fundamental to machine learning-based products and services and is considered strategic due to its externalities for businesses, governments, non-profits, and more generally for society. It is renowned that the value of organizations (businesses, government... View Details

Keywords: Economics Of AI; Value Of Data; Perishability; Time Dependency; Flow Of Data; Data Strategy; Analytics and Data Science; Value; Strategy; Competitive Advantage

SSRN

22 Feb 2024
Research & Ideas

How to Make AI 'Forget' All the Private Data It Shouldn't Have

predictions about the world. And now, even though generative AI feels very different from making a simple prediction, at a technical level, that's really what it is. In order to train these predictive systems, you need lots of example data input and output pairs. The... View Details

Keywords: by Rachel Layne; Technology; Information Technology

July 2024
Article

How Artificial Intelligence Constrains Human Experience

By: A. Valenzuela, S. Puntoni, D. Hoffman, N. Castelo, J. De Freitas, B. Dietvorst, C. Hildebrand, Y.E. Huh, R. Meyer, M. Sweeney, S. Talaifar, G. Tomaino and K. Wertenbroch

Many consumption decisions and experiences are digitally mediated. As a consequence, consumer behavior is increasingly the joint product of human psychology and ubiquitous algorithms (Braun et al. 2024; cf. Melumad et al. 2020). The coming of age of Large Language... View Details

Keywords: Large Language Model; User Experience; AI and Machine Learning; Consumer Behavior; Technology Adoption; Risk and Uncertainty; Cost vs Benefits

December 2016
Article

Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud

By: Michael Luca and Georgios Zervas

Consumer reviews are now part of everyday decision making. Yet, the credibility of these reviews is fundamentally undermined when businesses commit review fraud, creating fake reviews for themselves or their competitors. We investigate the economic incentives to commit... View Details

Keywords: Ethics; Marketing Reference Programs

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2015
Working Paper

Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud

By: Michael Luca and Georgios Zervas

Consumer reviews are now part of everyday decision-making. Yet, the credibility of these reviews is fundamentally undermined when businesses commit review fraud, creating fake reviews for themselves or their competitors. We investigate the economic incentives to commit... View Details

Keywords: Information; Competition; Internet and the Web; Ethics; Reputation; Social and Collaborative Networks; Retail Industry; Food and Beverage Industry

SSRN

March 2022
Article

Where to Locate COVID-19 Mass Vaccination Facilities?

By: Dimitris Bertsimas, Vassilis Digalakis Jr, Alexander Jacquillat, Michael Lingzhi Li and Alessandro Previero

The outbreak of COVID-19 led to a record-breaking race to develop a vaccine. However, the limited vaccine capacity creates another massive challenge: how to distribute vaccines to mitigate the near-end impact of the pandemic? In the United States in particular, the new... View Details

Keywords: Vaccines; COVID-19; Health Care and Treatment; Health Pandemics; Performance Effectiveness; Analytics and Data Science; Mathematical Methods

2022
Article

Towards Robust Off-Policy Evaluation via Human Inputs

By: Harvineet Singh, Shalmali Joshi, Finale Doshi-Velez and Himabindu Lakkaraju

Off-policy Evaluation (OPE) methods are crucial tools for evaluating policies in high-stakes domains such as healthcare, where direct deployment is often infeasible, unethical, or expensive. When deployment environments are expected to undergo changes (that is, dataset... View Details

Keywords: Analytics and Data Science; Research

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2021
Article

To Thine Own Self Be True? Incentive Problems in Personalized Law

By: Jordan M. Barry, John William Hatfield and Scott Duke Kominers

Recent years have seen an explosion of scholarship on “personalized law.” Commentators foresee a world in which regulators armed with big data and machine learning techniques determine the optimal legal rule for every regulated party, then instantaneously disseminate... View Details

Keywords: Personalized Law; Regulation; Regulatory Avoidance; Regulatory Arbitrage; Law And Economics; Law And Technology; Law And Artificial Intelligence; Futurism; Moral Hazard; Elicitation; Signaling; Privacy; Law; Governing Rules, Regulations, and Reforms; Information Technology; AI and Machine Learning

SSRN

30 Nov 2010
Working Paper Summaries

Achieving Reliable Causal Inference with Data-Mined Variables: A Random Forest Approach to the Measurement Error Problem

By: Mochen Yang, Edward McFowland III, Gordon Burtch and Gediminas Adomavicius

Combining machine learning with econometric analysis is becoming increasingly prevalent in both research and practice. A common empirical strategy involves the application of predictive modeling techniques to "mine" variables of interest from available data, followed... View Details

Keywords: Machine Learning; Econometric Analysis; Instrumental Variable; Random Forest; Causal Inference; AI and Machine Learning; Forecasting and Prediction

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03 Jan 2017
First Look

January 3, 2017

Winter 2017 MIT Sloan Management Review Why Big Data Isn't Enough By: Chai, Sen, and Willy C. Shih Abstract—There is a growing belief that sophisticated algorithms can explore huge databases and find relationships independent of any... View Details

Keywords: Carmen Nobel

29 Apr 2013
Working Paper Summaries

Exclusive Preferential Placement as Search Diversion: Evidence from Flight Search

Keywords: by Benjamin G. Edelman & Zhenyu Lai; Publishing; Technology

07 Feb 2022
Research & Ideas

Digital Transformation: A New Roadmap for Success

algorithms can lead to unintended bias that harms certain employees and customers, and the company’s reputation (a bias story can go viral on social media within minutes). 5. Design for inclusive and agile problem-solving As they become... View Details

Keywords: by Linda A. Hill, Ann Le Cam, Sunand Menon, and Emily Tedards

10 Feb 2020
In Practice

6 Ways That Emerging Technology Is Disrupting Business Strategy

Economic Research. 3. Algorithms are changing the pricing game “Firms are increasingly using pricing algorithms to set prices, especially in online markets. Pricing View Details

Keywords: by Danielle Kost

July 2013 (Revised August 2017)
Case

TaKaDu

By: Elie Ofek and Matthew Preble

In December 2012, Amir Peleg, founder and CEO of TaKaDu, reflected on how to position his young firm for the next fiscal year and beyond. The small Israeli startup had developed an innovative software system that used patented algorithms and statistical analysis to... View Details