Faculty News

Prof. Arun Sundararajan discusses the future of the job market and the sharing economy

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Excerpt from PBS NewsHour -- "There’s no clear way of predicting that people are going to lose their jobs in the long run. There’s definitely going to be a shift, in the same way that a century ago, like, 25, 30 percent of the United States worked in agriculture. Today, it’s less than 1 percent."
Faculty News

Prof. Priya Raghubir's research on consumer spending habits is featured

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Excerpt from The New York Times -- "A handful of academic researchers have studied what goes on inside our heads when credit cards are in our wallets, and even people who do not carry a balance each month are prone to overspending for a variety of reasons. ... A study in 2008, titled 'Monopoly Money,' featured a gift card denominated in dollars. Even though the gift card lost value instantly when people used it, people were still more likely to spend freely with it than they did with cash."
Faculty News

Prof. Paul Romer's comments on economic growth at an International Monetary Fund (IMF) panel are highlighted

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Excerpt from Financial Times -- "It is also possible that productivity growth might be only temporarily low in rich countries, a view expressed by professor Paul Romer of the Stern School of Business at New York University. He said it was 'possible we’re really missing a huge opportunity by not being more aggressive on the demand side right now', and called for a more aggressive monetary stimulus."
Faculty News

Prof. Scott Galloway discusses activist investor Carl Icahn

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Excerpt from Marketplace -- "[Icahn is] a 78-year-old man worth $23 billion, whose favorite sport seems to be arguing with CEOs. 'Activism in general draws a person who does not shy away from the limelight or shy away from a fight,' says Scott Galloway, professor of marketing at NYU's Stern School of Business."  
Faculty News

Prof. Aswath Damodaran explains how the behavior of fellow investors can influence retirement fund outcomes

Excerpt from Bloomberg -- "Fund managers need to take into account changes in the composition and behavior of fellow investors, said Aswath Damodaran, who focuses on equity valuation as a professor of finance at New York University’s Stern School of Business. 'These retirement funds have longer time horizons and preferences for larger dividend paying stocks than the rest of the market,' he said in an e-mailed response to questions. 'The old metrics, applied lazily and as rules of thumb, will yield the conclusion that these stocks are over-priced. If you believe that the fund flows have changed, you have to find a way to bring it into your analysis.'"
Faculty News

Profs Paul Romer and Michael Spence participated in an International Monetary Fund (IMF) panel discussion

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Excerpt from The Telegraph -- "In a separate IMF panel discussion on Wednesday with NYU professor Paul Romer and Ernesto Zedillo, the former president of Mexico, Mr Spence said it was imperative that governments overhauled labour laws to tip the balance back in favour of younger workers, who had paid a 'dreadful price' in the aftermath of the crisis."
Faculty News

Prof. Justin Kruger's research on conveying emotion through email is featured

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Excerpt from Fast Co.Design -- "'If comprehending human communication consisted merely of translating sentences and syntax into thoughts and ideas, there would be no room for misunderstanding,' Kruger and company write. 'But it does not, and so there is... Email recipients only identified seriousness or sarcasm 56% of the time--not much better than chance.'"
Faculty News

In an op-ed, Prof. Michelle Greenwald presents questions businesses should ask when considering customization as a differentiation tool

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Excerpt from Forbes -- "How much of a price premium will consumers be willing to pay for the benefits, or will the customization be viewed as a competitive tactic to increase new customer acquisitions and brand loyalty, without a price premium? In the latter case, there is a calculable marketing replacement value to customization."
Faculty News

Prof. Vasant Dhar discusses the rising importance of business analytics to companies

Excerpt from Treasury & Risk -- "'The amount of data that’s being generated just doubles every year,' said Vasant Dhar, a professor and head of the information systems group at NYU’s Stern School and co-director of Stern’s Center for Business Analytics. 'In the old days, data was something that was collected painfully and there wasn’t too much of it. Now we’re in an age where everything is recorded almost as a by-product of how we function. The fact there’s so much that’s out there and available opens up a whole new world of possibilities and risks,' he added. 'This is the new math; it’s a new way of functioning and thinking about the world.'"
Faculty News

In an op-ed, NYU Global Research Prof. Ian Bremmer discusses the intersection of international politics and business

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Excerpt from Fortune -- "Western companies benefit from a globalized marketplace backstopped by universal values that allows them to improve supply chains and reach new customers. They are engineered to compete with other corporations, not governments. Clashing states will force many companies to make painful choices about how they do business—and where."
Faculty News

Prof. Aswath Damodaran discusses stock buybacks

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Excerpt from Marketplace -- "When [Damodaran] looks at the biggest companies buying back the most stock—companies like Microsoft, Hewlett Packard, IBM—he sees a pattern. 'I mean you look at that list,' he says, 'and every single one of them, you look at the last decade, have a history of destroying value— of investing in things where they have nothing to show for it 5 years out, 10 years out.  I look at that list, and I say: Thank God for buybacks.'"
Faculty News

Prof. Marti Subrahmanyam reacts to the Chinese stock market opening to foreign investors

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Excerpt from CNBC -- "'It's like water,' said Marti G. Subrahmanyam, professor at NYU's Stern School of Business, said. 'So long the floodgates have been kept closed and water could not flow from China to Hong Kong. They are slightly opening the floodgates.'"
Faculty News

Prof. Roy Smith discusses the implications of stricter government regulations on Goldman Sachs

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Excerpt from The New York Times -- "'They are concentrated in the hardest part of the business,' said Roy C. Smith, a former partner at Goldman who is now a historian of the financial industry at New York University. 'In terms of the modern life of the place, this is the most difficult ordeal to manage its way through that the firm has ever faced.'"
Faculty News

Prof. Roy Smith weighs in on Wall Street's settlements with the Justice Department under Geoffrey Graber

Excerpt from Bloomberg -- "Critics such as Roy Smith, a professor at New York University’s Stern School of Business, say prosecutors were driven by 'political fever' to extract massive penalties from Wall Street. 'They have to deliver something, so they come up with this,” said Smith, a former Goldman Sachs Group Inc. (GS) partner. 'The fact that it’s unfair never really gets considered. The banks have no choice but to hunker down and accept it.'"
Faculty News

Prof. Michael Spence discusses the impact of underinvestment on economic growth

Excerpt from Bloomberg -- "The best thing about the American economy is that it is structurally flexible, so the private sector is actually adjusting pretty fast. But we need very heavy investment infrastructure, education, skills, and other things to try to bring the lower half of distribution up."
Faculty News

Prof. Karen Brenner discusses Bill Gross's departure from Pimco

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Excerpt from The Wall Street Journal -- "Iconic, charismatic leaders can excite investors, and boost innovation during their tenures. But the 'great man' approach can lead to stymied growth or worse, once the guy heads for the door, said Karen Brenner a professor at New York University Stern School of Business. 'You never want to let it get to a point that the company’s leader is seen as its core operational strength,' Prof. Brenner said."
Faculty News

Prof. Al Lieberman on Derek Jeter's new website, The Players' Tribune

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Excerpt from Fox News -- "Alvin Lieberman, a marketing professor at NYU and director of the school’s entertainment, media, and technology program, sees fierce competition for The Players’ Tribune. 'Jeter has to fight among the 200-plus cable channels and the many thousands of social networks,' he told FoxNews.com. 'Will he make an impression? Yes. The question is, how long will it last?'"
Faculty News

Prof. Jonathan Haidt's research on liberals, conservatives and morality is highlighted

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Excerpt from The New York Times -- "Indeed, scholars find that some of the most elemental differences between liberals and conservatives occur on the moral plane. In his now famous research, New York University’s Jonathan Haidt interviewed hundreds of people and surveyed tens of thousands more about their moral biases. He told outlandish stories (one involved a family eating its dog) and gauged his subjects’ immediate moral reactions. The differences were stark."
Faculty News

Prof. Joseph Foudy on recent growth in the job market

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Excerpt from the New York Post -- "'It was a pretty good report,' said Joseph Foudy, a business professor at New York University. 'The fact that job growth was in a range of sectors tells you it’s not just a one- or two-industry story.'"
Faculty News

Prof. Nicholas Economides discusses net neutrality at an FCC hearing

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Excerpt from Politico -- "An Internet roundtable was held focusing on the economics of the issue, and Chairman Tom Wheeler put forth an interesting question: 'Is there difference between prioritization and paid prioritization? Does the exchange for value change the economics?' he inquired in front of a panel of economists. It’s unclear if they got to the bottom of it, but Nicholas Economides, an NYU professor and executive director of the NET Institute, gave this answer: The ISPs have to prioritize their networks to run smoothly, he explained. 'The payment is the crucial thing because the payment can create disincentives that I think are perverse from the point of view of the public interest, but they are perfectly natural from the business point of view. From the business point of view, it makes perfect sense to create artificial scarcity and make more money.'"
Faculty News

Prof. Arun Sundararajan discusses how the digital economy is changing the cab industry

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Excerpt from PBS NewsHour -- "Uber’s creating a platform that’s replicating the traditional model of taxi, just doing it far more efficiently."
Faculty News

Prof. Anindya Ghose discusses the dot com bust vs. tech stocks today

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Excerpt from MyFoxNY -- "There's a lot of good that's come out of the 1999-2000 dot com bust. Ecommerce is what it is today because of what we have learned from the mistakes in the past. There is collateral damage. Sure, investors lost, but society benefited."

 
Faculty News

Prof. Aswath Damodaran's blog post on Yahoo and Alibaba is featured

Excerpt from Bloomberg -- "Yesterday’s gap was $9.23 billion, according to data compiled by Bloomberg. The shortfall reflects an estimate by Damodaran, the author of four books on company valuation, that Yahoo has $8.02 billion in cash. The discount is a sign of 'investor concerns, merited or not, that Yahoo’s management might do something senseless with the cash,' he wrote two days ago in a posting on his Musings on Markets blog."
Faculty News

In an op-ed, Prof. Nicholas Economides outlines suggestions to improve Greece's economy

Excerpt from Greek Reporter -- "The strategy that leads Greece quickly and with certainty to growth and reduction of unemployment is simple. Greece borrows €5bil per year issuing new bonds and uses all the moneys in public investments. Greece does not put a single euro from these moneys in the general budget, and the money is not wasted to 'pay' the IMF, which would send inspectors to Greece even if it extends no further loans. With some attention and care, Greece can reach a 3-5% growth in 2015 and higher in 2016. And by the end of 2016, this growth would result in 600,000 new work positions."
Faculty News

NYU Global Research Prof. Ian Bremmer discusses the protests in Hong Kong

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Excerpt from PBS NewsHour -- "Occupy Central has now become Occupy Hong Kong. As of tomorrow it’s likely to become Occupy larger than that. And if the — if local police, through threat and selective arrests, are unable to disperse these demonstrations, we’re likely to see a very significant violent crackdown."

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