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The outlook for the future of artificial intelligence (AI) in the financial sector, especially in financial forecasting, the challenges and implications. The dynamics of AI technology, including deep learning, reinforcement learning, and…
Artificial intelligence improves enterprise decision-making by accelerating data analysis, reducing human error, and supporting evidence-based choices. A quantitative survey of 92 companies across multiple industries examines how AI…
The discrepancy between realized volatility and the market's view of volatility has been known to predict individual equity options at the monthly horizon. It is not clear how this predictability depends on a forecast's ability to predict…
A firm can complete the tasks needed to produce output using either machines or workers. Unlike machines, workers have private information about their preferences over tasks. I study how this information asymmetry shapes the mechanism used…
As Artificial Intelligence (AI) becomes increasingly embedded in financial decision-making, the opacity of complex models presents significant challenges for professionals and regulators. While the field of Explainable AI (XAI) attempts to…
We investigate how the choice of decision makers can be varied under the presence of risk and uncertainty. Our analysis is based on the approach we have previously applied to individual decision makers, which we now generalize to the case…
Confirmation bias is a cognitive bias that adversely affects management decisions, and mathematical modelling is an aid to its detailed understanding. Bias in opinion update about the value of a parameter is modelled here assuming that…
We analyze the household savings problem in a general setting where returns on assets, non-financial income and impatience are all state dependent and fluctuate over time. All three processes can be serially correlated and mutually…
Transition to autonomous trucks (ATs) is coming, and is expected to create both challenges and opportunities for the driver workforce. This paper presents a novel methodology for identifying viable occupational transitions for truck drivers…
Scientific and technological progress is largely driven by firms in many domains, including artificial intelligence and vaccine development. However, we do not know yet whether the success of firms' research activities exhibits dynamic…
Multi-agent systems have demonstrated the ability to improve performance on a variety of predictive tasks by leveraging collaborative decision making. However, the lack of effective evaluation methodologies has made it difficult to estimate…
The global workforce is urged to constantly reskill, as technological change favours particular new skills while making others redundant. But which skills are a good investment for workers and firms? As skills are seldomly applied in…
A continuous variable changing between 0 and 1 is introduced to characterise contentment, or satisfaction with life, of an individual and an equation governing its evolution is postulated from analysis of several factors likely to affect…
The article focuses on possible financial effects of the transformation towards Gold Open Access publishing based on article processing charges and studies an aspect that has so far been overlooked: Do possible cost sharing models lead to…
The values of software organizations are crucial for achieving high performance; in particular, agile development approaches emphasize their importance. Researchers have thus far often assumed that a specific set of values, compatible with…
The vast majority of existing studies that estimate the average unexplained gender pay gap use unnecessarily restrictive linear versions of the Blinder-Oaxaca decomposition. Using a notably rich and large data set of 1.7 million employees…
A natural intuition about the economics of AI agents is that, because agents can be replicated at very low marginal cost, agent labor may be supplied highly elastically, placing downward pressure on cognitive-labor wages when it closely…
Human error research on overconfidence supports the benefits of early visibility of defects and disciplined development. If risk to the enterprise is to be reduced, individuals need to become aware of the reality of the quality of their…
We develop inference for a two-sided matching model where the characteristics of agents on one side of the market are endogenous due to pre-matching investments. The model can be used to measure the impact of frictions in labour markets…
Generative AI has the potential to transform how firms produce output. Yet, credible evidence on how AI is actually substituting for human labor remains limited. In this paper, we study firm-level substitution between contracted online…