Wisconsin School of Professional Psychology

Abstract We study endogenous intermediation activity, the implied transaction pattern—direct trade, indirect trade, or both—and implications for efficiency. Related papers have agents exchanging indivisible goods or assets, capturing only extensive margins (trade frequency). To capture intensive margins, we incorporate divisibility representing quantity or quality. We characterize equilibrium, show how it depends on bargaining powers and costs, and how intensive margins matter—for example, middlemen with high bargaining power may charge more but offer higher quantity/quality, thus improving welfare. A tax‐subsidy policy is designed to achieve efficiency. A monetary version lets us compare money and middlemen and further discuss policy.

We explore how the nature of human capital (generalist vs specialist) shapes the strategic foresight of corporate leaders. Examining insider trading—an important manifestation of strategic foresight—associated with product introduction announcements, we find that, on average, the insider trading of specialists is associated with greater strategic foresight compared with that of generalists. Yet, generalists can narrow this difference if they hold firm-contextual knowledge. Such knowledge enhances generalists’ understanding of the specificities of the focal firm and in turn offers them greater accuracy when they apply their broad knowledge to the firm. Yet, despite the apparent advantages of specialist knowledge for strategic foresight, we find that it is generalists who engage in more insider trading before product introduction announcements than specialists, and this effect is stronger when generalists hold firm-contextual knowledge. Our study offers fresh contributions to the strategic human capital and strategic foresight literatures.

Abstract Consumers often set budgets with the goal to minimize their spending. Contrary to this traditional interpretation, our research suggests that budgets can take on a different psychological meaning depending on whether the budget is for a personal or gift purchase. Across 11 studies, we find that consumers aim to spend below their budgets for personal purchases (budget minimizing) but aim to spend the entirety of their budgets for gift purchases (budget maximizing). We differentiate budget maximizing from spending maximizing, showing that gift purchasers are more likely to prefer “at-budget” than “above-budget” purchases. We also show that gift purchasers have weaker savings goals than personal purchasers—a difference that mediates the effect on their budget-minimizing and -maximizing tendencies. We explore multiple reasons that could explain why savings goals are less prevalent among gift purchasers and find an upstream role for price consciousness, guilt, and perceived specialness. Finally, we find that consumers’ preference for spending the entirety of their budgets on gifts was moderated by two separate factors: consumers’ budget slack and salience. Our research adds to the literatures on mental budgeting, gift giving, and self-other decisions.

Non-patent mechanisms for the protection of intellectual property, such as trade secrets, are increasing in relevance for technological innovation and firm-level competitive advantage. As the pace of technological change continues to intensify globally, and as knowledge-based resources are increasingly central to competitive advantage, effectively managing knowledge and information against the backdrop of a mobile human capital base is a critical strategic concern for firms. In this symposium we will assemble a group of leading scholars to showcase recent work on this issue, and to discuss future directions for research on this important topic. Given that issues of non-patent intellectual property protection are closely intertwined with competitive advantage and technological innovation, this symposium will be of strong relevance and interest to the membership base of both the Strategic Management (STR) and Technology and Innovation Management (TIM) divisions of the Academy of Management. Beyond Patents: Comprehensive Approaches to Protecting Valuable Knowledge Presenter: Natarajan Balasubramanian; Syracuse U. Presenter: Martin Ganco; Wisconsin School of Business Presenter: Evan Penniman Starr; U. of Maryland, College Park Trade Secrets and Entrepreneur-Incumbent Collaborations Presenter: Vikas A. Aggarwal; INSEAD Presenter: Jaeho Kim; Harvard Business School Presenter: Andy Wu; Harvard Business School Trade Secrecy, Transportation Networks, and Innovation Presenter: Andrea Contigiani; The Ohio State U. Fisher College of Business Presenter: Marco Testoni; Tilburg U. Entrepreneurship and Inequality: The Role of Incumbent Firms Presenter: Francesco Castellaneta; SKEMA Business School Presenter: Raffaele Conti; Catolica Lisbon School of Business and Economics Presenter: Aleksandra Joanna Kacperczyk; -