Norwegian School of Economics

We study optimal price setting by a monopolist in an infinite horizon model with stochastic costs, moderate inflation, and costly price adjustment. For realistic parameters, chosen to replicate observed frequencies of price changes, the model fits numerically several empirical regularities. In particular, price reductions are larger but less frequent than price increases, and prices respond considerably faster to cost increases than to cost decreases. The associated kink in the steady state short-run Phillips curve implies that the output loss associated with a small negative in‡ation surprise is about twice as large as the output gain associated with a small positive inflation surprise.

Artikkelen belyser hvordan kunstig intelligens (KI) endrer grunnleggende forestillinger og antakelser for strategi, organisasjonsutvikling og ledelse i en kontekst preget av rask teknologiutvikling. Studien bygger på topplederes egne refleksjoner om det å realisere verdiskaping fra KI, og viser at usikkerhet i økende grad forstås som en permanent rammebetingelse. Artikkelen argumenterer for at digital forestillingsevne – evnen til å utforske og forme fremtidige muligheter gjennom praktisk eksperimentering og læring – utgjør en kritisk kapabilitet for å håndtere usikkerhet. Digital forestillingsevne fungerer dermed som bindeleddet mellom teknologisk usikkerhet og strategisk handling, og som en forutsetning for organisatorisk og strategisk fornyelse og verdiskaping. English abstract Digital Imagination: The Key to Value Creation with AI This article examines how artificial intelligence (AI) reshapes fundamental assumptions underlying strategy, organizational development, and leadership in a context characterized by rapid technological change. The study draws on top executives’ own reflections on realizing value from AI and demonstrates how uncertainty is increasingly understood as a permanent operating condition rather than a temporary challenge. The article argues that digital imagination—defined as the capability to explore and shape future possibilities through practical experimentation and learning—constitutes a critical organizational capability for navigating uncertainty. Digital imagination thus functions as the bridge between technological uncertainty and strategic action, and as a prerequisite for organizational and strategic renewal and value creation.

ABSTRACT The tourism industry is likely to face significant challenges stemming from climate change and fluctuations in travel costs. This study investigates the potential impacts of these factors on tourism demand in Fjord Norway, and shows that both environmental conditions and travel expenses play a substantial role in influencing tourism demand. However, tourists exhibit a higher sensitivity to variations in travel costs compared to changes in climatic conditions. The findings also indicate that Norwegian tourists, who possess a strong awareness of environmental issues, are less affected by the ramifications of climate change than their domestic counterparts with lower levels of environmental consciousness. In contrast, domestic tourists with high environmental awareness do not demonstrate significant differences in their responsiveness to economic changes compared to those with lower awareness. These insights hold considerable implications for the effective management of tourism in the Fjord Norway region.