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Changing Business

Research news from Johns Hopkins Carey Business School

Changing Business is the research newsletter of the Johns Hopkins Carey Business School faculty. Each quarterly issue explores impactful, cutting-edge research that shapes business, policy, and society. Carey is the business school of Johns Hopkins University, America’s first academic research institution. Using an interdisciplinary approach, Carey's faculty seeks to address the world's most pressing problems by applying a diversity of expertise in analytics, leadership, finance, marketing, and strategy to numerous topics including the business of health.

In this Issue: Winter 2026

Latest research

Are exposure bucks worth it? Evidence from Instagram

Andrew Ching finds that well-intentioned interventions can fail to produce lasting change because they do not adequately account for incentives, learning dynamics, or post-intervention behavior. Using Instagram's recently introduced “collaborative post” feature, Ching’s research quantifies the value of exposure to a brand's audience for small creators. He and his coauthor find that on average, a collaborative post increases a small creator’s following by only 277 followers -- roughly 1 week worth of their typical growth. These findings suggest that creators are likely better off seeking monetary compensation from brand collaborations rather than working for free in exchange for "exposure."

Democratizing Optimization with Generative AI

Tinglong Dai’s paper argues that generative AI can finally “democratize” mathematical optimization by making it accessible to non-experts through natural language interfaces that improve insight, interpretability, interactivity, and improvisation, what he calls the “4I” principles. Rather than replacing optimization, GenAI complements it by lowering modeling and usability barriers while optimization enforces rigor and constraints, enabling faster, more transparent, and more adaptive decision-making in real organizations.

Beyond Adoption: The Persistence of Conservation and Climate-Smart Agricultural Practices

Paul Ferraro’s research shows persistent use of conservation and climate-smart practices is much lower than experts expect, showing that persistence is far less common than initial adoption. He and his colleagues argue that policies overly focused on adoption incentives overlook economic, behavioral, and institutional factors that determine long-term environmental impact.

Structural Equity Option Pricing: Implications for Credit

Nicola Fusari and his coauthors use real-time equity option prices to learn about firm fundamentals such as default risk, using a structural model implemented with deep neural networks. Their estimates track credit market indicators while revealing the role of intermediary constraints in credit pricing, highlighting options as a forward-looking and relatively friction-free source of risk information. This approach contrasts with traditional corporate finance, which relies on infrequently updated financial statements rather than timely market signals.

Insuring Climate Risks in Integrated Markets

Deeksha Gupta and colleagues study climate insurance when regions are economically integrated through trade. They show that economic spillovers through trade linkages affect insurance demand. When climate shocks across regions tend to occur together, one region's insurance offsets the others. Conversely, when climate shocks across regions tend to occur at different times, insurance choices across regions complement each other. These cross-region interactions can lead to underinsurance traps—persistent low insurance even at fair prices. They can also cause an insurance market collapse in one region to spread to others. Government policies, such as insurance subsidies or discounts, can unintentionally worsen underinsurance.

The Quantity-Quality Tradeoff: How Incentives and Monitoring Shape Gender Differences at Work

Colleen Stuart’s study concludes that gender differences in how workers balance quantity versus quality are not fixed traits but are strongly shaped by organizational incentives and monitoring. Strong production incentives push men to prioritize quantity, while heightened monitoring leads women to emphasize quality. Importantly, the largest gender gaps emerge when incentives are strong and monitoring is weak, showing that standard organizational practices can unintentionally produce and amplify workplace gender inequalities even when they are formally gender-neutral.

Awards and recognition

Professor Tinglong Dai was appointed the founding department editor for the “AI in Operations” department of Manufacturing & Service Operations Management. M&SOM is the premier journal in the field of operations management.

Assistant Professor Ali Fattahi received the 2025 INFORMS Energy, Natural Resources, and the Environment (ENRE) Best Publication Award in Environment & Sustainability for his paper “Flattening Energy-Consumption Curves by Monthly Constrained Direct Load Control Contracts.” This award recognizes outstanding research articles for exceptional originality, practical relevance, and impact on environmental sustainability.

Professor Christopher G. Myers was named the inaugural Peetz Family Professor of Leadership. Myers’ research looks at leadership challenges and opportunities in healthcare, particularly how people learn vicariously and share knowledge. Myers is also co-founder and faculty director of the Center for Innovative Leadership.