๐ญ Policy insights:
Counterfactuals show that boosting supplier productivity in Arizona (e.g. semiconductor push) or seeding intra-state ties in California (EV initiatives) reshapes national networks.
Even small, targeted nudges can ripple through supply chains.
๐จ New paper alert!
How do supply networks form & evolve?
๐ Check out out new paper answering this question: โMicrofoundations of Link Formation in Supply Networksโ https://t.co/E2meGtnEOy
๐ Findings:
Buyer productivity shocks are the strongest driver of new links
Familiarity (shared partners) helps, but benefits plateau after ~5
Proximity eases frictions; firms of different sizes are more likely to connect
Small frictions can crowd out high-productivity matches
โ๏ธ Our approach:
Random-utility model of link formation/dissolution
Correlated random effects & network IVs, a Structural dynamic model
This lets us tackle selection, endogeneity & interdependence head-on.
๐ Why this matters:
Most studies treat supply networks as fixed. But in reality, theyโre shaped by strategic firm decisions under productivity shocks, geography, and local network structure. Understanding formation is key to credible empirical OM research.
BREAKING NEWS
The Royal Swedish Academy of Sciences has decided to award the 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Daron Acemoglu, Simon Johnson and James A. Robinson โfor studies of how institutions are formed and affect prosperity.โ
#NobelPrize
Our latest paper is now forthcoming in Management Science. Collaborating with my co-author and advisor, Vishal Gaur, on this article (over the last five years) has been incredibly rewarding.
https://t.co/71JCvCRj5o
By leveraging historical financial data, our model estimates these complex effects and provides a valuable tool for firms to make informed financial decisions.
๐ข Special Issue Alert M&SOM Journal (M&SOM) ๐ข
Topic: ๐๐๐ฌ๐ฉ๐จ๐ง๐ฌ๐ข๐๐ฅ๐ ๐๐๐ญ๐๐ข๐ฅ ๐๐ฉ๐๐ซ๐๐ญ๐ข๐จ๐ง๐ฌ.
Deadline for submission: August 1, 2025.
More details in our Call for Papers: https://t.co/aPrCJycsQo
Honestly this is the most impressive demo I have seen yet and the one I find really hard to wrap my head around. There is persistence of complex shapes and images through multiple angles and distances & thematic consistency from the start to the end with relatively minor issues.