Essay 99: Economics—Apple Card’s Fintech Problem; Improving AI-Based Recommendations; IBM & Nazi Germany

from Harvard Business School Working Knowledge:

Gender Bias Complaints against Apple Card Signal a Dark Side to Fintech

The possibility that Apple Card applicants were subject to gender bias opens a new frontier for the financial services sector in which regulators are largely absent, argues Karen Mills.

It’s No Joke: AI Beats Humans at Making You Laugh

New research shows people don’t trust recommendations made by machines—and that’s a problem for marketers who increasingly rely on AI-based technology to persuade consumers. Michael H. Yeomans explains how businesses can overcome that bias.

Do TV Debates Sway Voters?

As Democratic presidential candidates prepare for another debate, Vincent Pons reports that TV forums don’t influence voters.

Lessons from IBM in Nazi Germany

Geoffrey Jones discusses his case study, “Thomas J. Watson, IBM and Nazi Germany,” exploring the options and responsibilities of multinationals with investments in politically reprehensible regimes.

For Better Ideas, Bring the Right People to the Brainstorm

Better ideas emerge when extroverts and people open to new experiences put their heads together, according to research by Rembrand M. Koning. But what about introverts?

Should Non-Compete Clauses Be Abolished?

Non-compete clauses prevent workers from bringing secrets with them to competitors. But increasingly NCCs are unnecessarily restricting job mobility for low-level employees. Should they be banned? asks James Heskett.

Design Rules, Volume 2: How Technology Shapes Organizations series

Working papers by Carliss Y. Baldwin and Kim B. Clark explain how and why different types of technology design pose different opportunities and challenges for organizations and can become vital forces of innovation.

Essay 98: Economics—Policy Options: Increase Tax Rates on Capital Gains & Dividends

from Penn Wharton (University of Pennsylvania) Budget Model:

Policy Options: Increase Tax Rates on Capital Gains & Dividends

We estimate the budgetary and economic effects of increasing the top rate on long-term capital gains and qualified dividends from 20 percent to 24.2 percent, which is enacted on January 1st, 2021. We project that it will raise around $60 billion of additional revenue on a conventional basis over the 10-year budget window and increase GDP by 0.1 percent by 2050. [Archived PDF]