Experience Stern | News & Events

Excerpt from Forbes -- "Coined in 1999 by then-Cornell psychologists David Dunning and Justin Kruger, the eponymous Dunning-Kruger Effect is a cognitive bias whereby people who are incompetent at something are unable to recognize their own incompetence. And not only do they fail to recognize their incompetence, they’re also likely to feel confident that they actually are competent."

Excerpt from Forbes -- "'If you’re vested in growth, you have to be vested in innovation,' noted Luke Williams, a professor of innovation at the NYU Stern School of Business, who spoke Tuesday at Oracle CloudWorld. The challenge for companies is that existing organizations are 'systems of continuity' that tend to resist real change unless they’re under an almost existential threat."

Excerpt from The Karen Hunter Show -- "When you search on Google for something, sneakers, let's say, and you click on the images tab, it will bring up a whole bunch of sneakers. Someone in the past had to tag that image with it. Now, computers are tagging it automatically."

Excerpt from FAZ -- "'...winners and losers will lobby for their respective positions,' conclude the economists Stephen Cecchetti and Kermit Schoenholtz, who are renowned in international economic relations."

A faculty team from the NYU Stern School of Business has recently published an eBook, The Infrastructure Finance Challenge, an analysis of the drivers, challenges and actionable choices for the future of infrastructure finance. 

Excerpt from Reuters -- "Philippon argues that if savers are to benefit from the next wave of innovation, such as blockchain banking, it will be because regulation stops existing banks from co-opting it and keeping all of the benefits of efficiencies to themselves."

Excerpt from Poets & Quants -- "'After taking Summer@Stern, students have a better idea of what it would be like to study business in college and whether it is something they want to pursue,' [Deo] says. 'Whether they choose to pursue business studies or not, they gain valuable knowledge of the fundamentals of business and personal finance, which can be applied to so many different disciplines, as well as daily life.'"

Except from Poets & Quants -- "Linio — founded by a team of MBAs from New York University’s Stern School of Business, MIT’s Sloan School of Management, and HBS — claimed second with $230.5 million, up from seventh last year."

Excerpt from Crain's New York -- “Luxury brands will hold their own—you still can’t buy Hermès on Amazon. There will be some artisanal guys that will manage to hang on because they’re so exceptional. You’ll see Starbucks, Chipotle, more Warby Parker stores. And everyone else will get crushed.”

Excerpt from OZY -- "'We’re going to see more development of natural energy resources,' says White. He is less bullish on the prospects for the coal industry that Trump has promised to revive, citing market pressures that already make coal a less attractive alternative to fracked oil and gas, regardless of regulation."

Excerpt from Psychology Today -- "Dunning and Kruger documented this effect in a number of quantitative contexts. Its first publication, in 1999, bore the memorable title, 'Unskilled and Unaware of It: How Difficulties in Recognizing One's Own Incompetence Lead to Inflated Self-Assessments.' The authors observed that you need skill and knowledge to judge how skilled and knowledgeable you are. A tone-deaf singer may be unable to distinguish her talent from that of the greatest stars. Why then shouldn't she believe she's their equal?"

Excerpt from The New York Times -- "Consider that blue states send much more money to Washington than they receive, while the reverse is true for red states, which tend to favor Republicans. Blue states also enjoy significantly higher per capita income than red states and are home to a disproportionate share of the nation’s highest earners. The upshot is that if the Trump administration cuts taxes on top earners as expected, the federal tax burden on blue states will fall especially sharply. Those states will thus have new fiscal flexibility, should they choose to offset other aspects of the Trump agenda."

Excerpt from CNNMoney -- "Ian Bremmer, president of risk consultancy Eurasia Group, said the uncertain geopolitical environment, coupled with the potential for conflict with the U.S. and domestic political concerns, will leave Beijing in a worried state. 'These are things that really unnerve the Chinese,' Bremmer said."

Excerpt from CNET -- "'The upside is an administration that is more friendly to bringing down regulatory barriers,' said Arun Sundararajan, New York University professor and author of 'The Sharing Economy.' 'The potential downside is an administration that may start to put in place policies that slow the pace of job displacement through automation, which could thwart Uber's, and eventually Lyft's, long-term plans,' he said."

Excerpt from Forbes -- "Vasant Dhar, a professor of information systems at NYU, studies computer decision making. He says it'll be up to the 'seasoned decision makers' in the military to decide whether or not new machine technology... is worth the cost of its mistakes."

Excerpt from WalletHub -- "Consumers benefit from rewards programs in multiple ways - to start with, they have the intrinsic benefit of 'miles' that they can exchange for tickets, hotel rooms, and increasingly products (including gift cards). Thus, this is another form of currency that they accrue. Additionally, they benefit by climbing up the rewards program hierarchy."

Excerpt from OZY -- "The jury is still out regarding the long-term performance of social investing, notes Vasant Dhar, a professor at New York University’s Stern School of Business. It remains to be seen whether OpenInvest’s pitch will convince retail clients to invest with their hearts. Murray cites Morgan Stanley research that shows 84 percent of millennials would like to invest according to sustainable principles, and indeed young people also are more willing to trust machines with their finances, says Dhar."

Excerpt from Bloomberg -- "'India is at an exciting but challenging time,' Acharya said in a statement last week released on the NYU Stern’s website. 'As one of the world’s fastest growing economies, India has the massive potential to become an economic powerhouse.'"

Excerpt from MarketWatch -- "Regardless of the tense political climate, presidential inaugurations aren’t typically seen as a shopping opportunity, said Priya Raghubir, the chairwoman of New York University’s Stern Business School’s marketing department. That said, since retailers are experiencing a post-holiday slump, some will likely try to capitalize and sell inauguration memorabilia, she added."

Excerpt from Scientific American -- "Professor Steven Blader at New York University with Ya-Ru Chen found similar effects for greater power contributing to less inclusiveness towards others in the form of reduced fairness in their paper published in the Journal of Personality and Social Psychology. But they found that the way that individuals reduce the dark side of power was highly dependent on their dispositions; namely, the degree to which they were other-oriented."

Excerpt from eFinancialCareers -- "Machine learning technology will make many jobs obsolete – some will be replaced by machines in the future. Examples include driverless cars, automated trading systems, and robots as waiters and cleaning people, to name just a few. I think one way [to approach the problem of unemployment] is to provide people with a better education so that the next generation will be trained to perform jobs that machines are not competent in."

Excerpt from Livemint -- "The biggest lesson is that as an investor, invest in simple companies rather than these complex holding companies. Because any time you invest in a complex holding company, this is one of the prices you pay—you have very little control over process because of the holding structure."

Excerpt from The Huffington Post -- "Haidt outlines six moral foundations the 'elephant' part of us uses to determine whether we agree with an action or idea. These foundations are inextricable from their opposites. They include: Care/Harm, Fairness/Cheating, Loyalty/Betrayal, Authority/Subversion, Sanctity/Degradation and Liberty/Oppression."

Excerpt from the National Law Review -- "[Bakos] found that people will still shop at an eStore they trust without checking all the prices readily available on the internet. Much like the days before online shopping, a person would walk into a store, see the price posted for an item, and decide if it was worth it."

Excerpt from IEEE Spectrum -- "'The greatest threat to innovation is if new companies, innovative companies, have to pay a lot to be on the same playing field as everybody else,' Economides says. Net neutrality supporters worry there might be secondary effects from limiting the free flow of ideas and information online."