Experience Stern | News & Events

Excerpt from Portland Press Herald -- "The problem with trendy foods is that no one really knows what sales will look like five years from now. If a business owner catches the upswing of a trend, Eggers said, they may be able to get several years of good business before having to worry about the bubble bursting. That’s what happened with Crumbs. 'They came in relatively early in the cupcake trend,' Eggers said. 'They actually made a lot of money for a period of time, but they got themselves in trouble because they overexpanded.'"
 

Excerpt from Demos -- "New York University Economics Professor Thomas Philippon has estimated that the financial sector causes a 'misallocation of resources' in the amount of $280 billion each year."

Excerpt from The New York Times -- "Given the evidence, US society would benefit from a more balanced housing policy that puts equal weight on rental and home ownership assistance programs. On the ownership side, we need a policy that stimulates the accumulation of home equity, for example through down payment assistance, rather than mortgage debt. We should cut the benefits for the rich by lowering the limit below which Fannie and Freddie can purchase mortgages (or phase out these government-sponsored enterprises altogether as I have argued in 'Guaranteed To Fail'), by capping the mortgage interest rate deductibility, and by focusing efforts on first-time buyers."

Excerpt from The Globe and Mail -- "The report concludes trading volume and volatility in the 30 days preceding the announcement of a takeover deal 'suggests that informed trading is more pervasive than would be expected based on the actual number of prosecuted cases.' The study is a working paper published in May by Patrick Augustin of McGill University in Montreal and co-authors Menachem Brenner and Marti Subrahmanyam, both of New York University."

Excerpt from The Economist -- "A paper by Kei Kawai of New York University’s Stern School of Business and Jun Nakabayashi of Tohoku University examines Japanese public building projects. They collected data on over 40,000 tenders from 2003-06 worth $42 billion (around 3% of national tax revenue). The Japanese government uses a first-price sealed-bid auction: builders write down their best price, and the lowest bid wins the work. If none beats a reserve price that is known only to the auctioneer, the procedure is repeated until a bid beats the reserve."

Excerpt from Bloomberg -- "It's a more complicated story in New York than it is in any other American city because we rely so much more on public transportation or on taxis for our day-to-day functioning, and as a consequence, our regulatory infrastructure is so much deeper and so much more complex. And so the ways in which we regulate the analog, the old way of sharing, taxicabs, is a little more complicated than it is in, say, a city like Austin or a city like San Francisco."

Excerpt from CCTV -- "The day-to-day trade between the two countries is not driven by governments. It's driven by market forces and companies, and that economic relationship just gets stronger every year."

Excerpt from eCampusNews -- "Arun Sundararajan is Professor of Information, Operations and Management Sciences at NYU. If you are interested in the intersection of social media, online privacy and ed-tech startups, you should follow Arun’s Twitter feed for opinionated commentary and curated content."

Excerpt from Yahoo! News -- "At the same time, however, the government is putting the squeeze on the very same banks it wants to ease up on lending standards and provide more credit to businesses and consumers, to help boost spending and growth. 'Banks are not providing the support we need for the economic recovery,' says Smith. 'There may be a political value to punishing the banks for reckless behavior, but there has to be some sense of political closure on this.'"

Excerpt from San Francisco Chronicle -- "Arun Sundararajan, a New York University business professor who specializes in changes wrought by digital technology, said the new nomenclature makes sense. 'My impression is they don't want to be thought of as a site for generic menial labor, and want to communicate that you can find skilled people on TaskRabbit,' he said. 'The word "rabbit" doesn't conjure up highly skilled workers; it may have hurt them because they're not leveraging the pool of talent they have painstakingly acquired.'"

Excerpt from Bloomberg -- "I think a lot of it's semantics. I think wearables is going to be huge, but I think this [the smartphone] is going to be your wearable. I think that you're going to get a lot of health devices and a lot of tracking on here... I'd put this right up there with mass customization and 3D printing as some of the things the media seems to be much more excited about... the performance is not living up to the promise yet."

Excerpt from Knowledge@Wharton -- "David Yermack, finance and business transformation professor at New York University’s Stern School of Business, notes that critical to the survival of a cyber-currency is government support. 'I am skeptical that any form of money will be successful if it is not backed by a sovereign government. Without this sort of foundation, a currency really cannot be a form of property because it cannot be pledged as collateral, foreclosed upon, reassigned in bankruptcy and so forth,' he says. 'This will make it unattractive in a wide range of commercial settings.'"

Excerpt from The Huffington Post -- "'If you keep people really, really busy, what will happen is that the scope of what they can attend to will narrow down. They'll get really focused on the next couple of days or the next few weeks or the next quota,' Schilling said. 'You want them to think about the forest -- you don't want them to get so caught up in the trees that they can't see the forest anymore.'"

Excerpt from The Japan Times -- "Asker’s data showed the extent to which productivity is positively correlated to sales is different from company to company. However, 'the important message is that companies should be doing everything they can to maximize productivity,' he said."

Excerpt from The Wall Street Journal -- "'These guys have established quite a lot of credibility,' said Alexander Ljungqvist, a professor of finance and entrepreneurship at New York University's Stern School of Business who has written about short sellers. 'Investors clearly are taking them seriously,' he said."

Excerpt from The Wall Street Journal -- “In the 20th century, what had been for the rich got offered to ordinary people,” noted financial historian Richard Sylla of New York University’s Stern School of Business. He expects selling by aging Americans to be offset by buying from fast-growing developing countries and says that free international capital flows have been among the biggest advances of the past 125 years."

Excerpt from Marketplace -- "There are successful businesses that sell just one product. But most are in markets where it’s easy to predict demand - like steel. So, says J.P. Eggers, an assistant professor of management and organization at NYU’s Stern School of Business, 'They are, in general, able to deeply understand what their customers are after, deliver what they want, how they want it, at the price that they want it.' But there are plenty of stores that sell mostly cupcakes. Eggers says it’s unlikely they’ll all go away. He says when the cupcake bubble burst, Crumbs found itself with some odd store locations."

Excerpt from Financial Advisor magazine -- "'It's not easy to create value,' said Roy C. Smith, professor of finance, international business and management practice at New York University's Stern School of Business and a former general partner at Goldman Sachs & Co."

Excerpt from Forbes India -- "If you are an investor, you have to make your own judgement. The key to success is not whether you can invest like Warren Buffett, but whether you have an investment philosophy that you are comfortable with."

Excerpt from Environment & Energy Publishing -- "'The idea is to remind the consumer or educating about this industry's positive spillover effects on the society, like job creation, clean energy, etc.,' Erdem said. The education effort can't hurt if industry investments 'may result in even higher electricity charges. ... They don't want a backlash from the consumers so they want to prepare the ground for that.'"

Excerpt from The Huffington Post -- "'This suggests that we may be able to boost our own levels of motivation and performance by either forming rivalries or harnessing the ones we already have,' study researcher Gavin Kilduff, of NYU's Stern School of Business, said in a statement. 'It might also get us to think about whether other individuals in our lives may view us as their rivals.'"

Excerpt from Barron's -- "SMAs tend to be smaller than public funds -- $152 million being the median SMA size in the study -- allowing their managers to remain nimble when trading. They also have fewer, more sophisticated, and wealthier clientele. 'The median number of investors in our sample of separate accounts is 12, and they're large ones,' says Martin Gruber, who co-authored the study with Edwin Elton and Christopher Blake. 'So money managers are dealing with each customer on a more personalized basis. If investors are going to withdraw money, the manager can do a lot of planning with them in advance and change his positions in their portfolios accordingly.'"

Excerpt from Bloomberg Businessweek -- "Securing a foothold in a few major cities could help ease Uber’s way in places that are trying to shut it down. And the company’s public political battles may turn out to be useful in attracting new customers and supporters. In the end, argues Arun Sundararajan, a professor at New York University’s Stern School of Business, 'The more they sort of popularize themselves, the stronger their argument becomes.'"

Excerpt from The Huffington Post -- "Political ideology plays a role in shopping behavior, according to Vishal Singh, a marketing professor at NYU’s Stern School of Business who has studied the topic. Singh’s research shows that conservatives are more likely to pick more established name brands over generics and are slower to adopt new products. They also tend to favor domestic over foreign beers. These trends are consistent with attitudes associated with conservatism, such as being skeptical of new experiences, Singh said."

Excerpt from NPR -- "I think what's striking about this particular wave of changes that we're seeing... is that they're affecting familiar services that we're used to and familiar real-world asset-based services: point-to-point accommodations, short-term transportation, dining, probably, in the future, healthcare and energy, and I'm struck by the characterization of these platforms as being equivalent to a scam because I sort of see them as... important future engines of economic growth."