Experience Stern | News & Events

Excerpt from Forbes -- "One theoretical economical model that comes to mind that supports Kelly’s belief is Michael Spence’s signalling model of education. In this model, a person with high ability, ability that cannot be directly observed by prospective employers, looks for some way to signal that ability to differentiate himself from lower ability competitors."

Excerpt from The Globe and Mail -- "In the retail sector, Mr. Galloway argued that Amazon.com Inc. is a big winner at the expense of brands that have weak digital strategies, such as Target. He offered what might be the best metaphor I’ve ever heard to explain what Amazon is doing by building gigantic fulfilment centres outside of urban areas. He suggests that while the cable company is your conduit for digital bits (think cable modem service), Amazon’s fulfilment business is set to become your conduit for atoms (physical stuff). Because Amazon spends so much money on technology and fulfilment, Mr. Galloway says it’s like they’ve gone underwater with a huge oxygen tank and forced their competitors, who have much smaller oxygen tanks, to dive down too. He calmly predicts that the weaker players will run out of air and drown."

Excerpt from Financial Times -- "I think the best way I can explain [the difference between price and value] is with an analogy. Let's suppose you go to look at a house that you want to buy. Your realtor points to the house. She names a price, or he names a price, and you say, 'Where did you come up with that number?' And the reality is, he or she came up with that number by looking at other houses in the neighborhood and what they sold for. A lot of people invest the same way. If you ask them, why are you paying $50 for Twitter or $600 for Apple, the reality is they haven't valued the company in any real sense, they've priced the company by looking at what other people are paying for the stock. That's the essence of the difference. Price is based on what other people pay. Value is based on what you think you can get back in cash flows from investor."

Excerpt from Bloomberg -- "'Anything that harms Alibaba has a direct impact on the reputations of everyone in the industry,' said Joseph Foudy, a professor of Asian studies at New York University’s Stern School of Business. 'That doesn’t mean they won’t do it, it just means that decision will be taken at the highest level, where they’re tremendously proud of Alibaba.'"

Excerpt from El Paso Times -- "The financial landscape can change quickly, and that's why regulators need to be 'aware of when risks are growing and need timely evidence. And I'm not sure a once-a-year stress test (instituted in 2009) is enough to see what is going on, and make good decisions,' [Engle] said. A more frequent monitoring system is needed, and that's what Engle said he and his colleagues have developed at NYU."

Excerpt from Financial Times -- "'The fix is easy to manipulate and it is not a good benchmark,' said Rosa Abrantes-Metz, adjunct professor at New York University Stern School of Business and author of a soon-to-be-published research paper on the fix. 'The news shows that illegal behaviour did occur and there will be concerns about what else was happening.'"

Excerpt from Forbes -- "One theoretical economical model that comes to mind that supports Kelly’s belief is Michael Spence’s signalling model of education. In this model, a person with high ability, ability that cannot be directly observed by prospective employers, looks for some way to signal that ability to differentiate himself from lower ability competitors."

Excerpt from Bloomberg -- "Unusual trading patterns around the afternoon fixing in London are a sign of collusive behavior and should be investigated, Rosa Abrantes-Metz, a professor at New York University’s Stern School of Business, wrote in a draft research paper, which was reported by Bloomberg News in February."

Excerpt from The Washington Post -- "A recent study from New York University estimates that CARD Act fee reductions have saved consumers $12.6 billion a year since being enacted. Researchers examined 150 million credit card accounts and found that limits on fees reduced overall borrowing costs to consumers by an annualized 1.7 percent of average daily balances."

Excerpt from Bloomberg -- "[Our central bank system] is quite distorted. I don't think Europe can recover unless there is a significant weakening of the Euro, so, very reluctantly, the ECB is about to move into that territory."

Excerpt from Project Syndicate -- "The world we are entering is one in which the most powerful global flows will be ideas and digital capital, not goods, services, and traditional capital. Adapting to this will require shifts in mindsets, policies, investments (especially in human capital), and quite possibly models of employment and distribution. No one knows fully how all of this will play out. But attempting to understand where the technological forces and trends are leading us is a good place to start."

Excerpt from Barron's -- "The West needs to overcome the political dysfunction and short-termism that frustrates durable economic growth, delays financial soundness and dampens job creation. For their part, emerging powers need to accept that global instability would inflict heavy damage on their still evolving economies—and that assuming greater international responsibility is ultimately in their interests. And they all need to work toward these goals before a massive global crisis shocks them into action and dictates the terms of the response."

Excerpt from Barron's -- "The West needs to overcome the political dysfunction and short-termism that frustrates durable economic growth, delays financial soundness and dampens job creation. For their part, emerging powers need to accept that global instability would inflict heavy damage on their still evolving economies—and that assuming greater international responsibility is ultimately in their interests. And they all need to work toward these goals before a massive global crisis shocks them into action and dictates the terms of the response."

Excerpt from Reuters -- "In a G-Zero world, with no single dominant voice and a lack of global coordination, India now stands out as a rare oasis of leadership and a prime opportunity for bilateral engagement. Take India’s direct relationship with Washington, where high-profile visa issues, including the arrest of an Indian diplomat in New York, have strained relations. The United States denied Modi a visa in 2005 based on his role in Gujarat riots in 2002. But sometimes winning really does solve everything: after Modi’s election victory, Obama called to congratulate him and invite him to the United States. For his part, Modi is looking to put points on the board, not settle scores. Expect him to pursue an invigorated, pragmatic approach to international relations."

Excerpt from US News & World Report -- "An academic study on the CARD Act found that the legislation’s limits on fees reduced borrowing costs to consumers overall by 1.7 percent a year, and had a still more dramatic impact for borrowers with lower credit scores; people with credit scores below 660 saw their borrowing costs go down by 5.5 percent. All in all, this study found an even larger impact than the CFPB report, calculating that fee reductions as a result of the CARD Act have saved consumers a whopping $12.6 billion per year."

Excerpt from BBC -- "'The secret is to start small. Take the focus off thinking that you need to innovate everything,' said Aline Wolff, clinical associate professor of management communication at New York University’s Stern School of Business. 'Instead, managers who juggle multiple tasks should pick one of them and reconsider how it’s typically completed.'"

Excerpt from Bloomberg -- "'The value of a criminal admission only has symbolic value to let the public know the Justice Department is out there doing its job.' said Roy Smith, a finance professor at New York University’s Stern School of Business and a former Goldman Sachs Group Inc. partner. 'I don’t think it extracts anything other than an opportunity to register a symbolic victory.'"

Excerpt from The Economist -- "Remarkably, they find that people pay a premium of 10%-15% less for 100-year leaseholds and 5%-8% less for leaseholds of between 125-150 years. Only for leaseholds of 700 years or more do they detect no difference in price. On the whole, they reckon, a discount rate of about 2.6% appears to apply out well beyond a century. Oddly enough, people are willing to part with real money now in exchange for benefit flows accruing well beyond any reasonable expected lifespan. That won't make it any easier to generate the political support for meaningful action to slow climate change. But it does make it harder to justify delay based on the fact that people simply don't care much about the distant future."

Excerpt from Fox Business -- "I think fundamentally it's a story of economic growth and technological progress stimulating economic growth. The term 'sharing economy' is sometimes misleading because, at the heart of this, this is pure capitalism. It's markets, it's free markets, it's pricing, it's... people transacting with other people. And so when there's this kind of disruption, special interests or established interests do sort of step in and use what they can to sort of try and make sure that the interests that they have are preserved."

Excerpt from Financial News -- "Markets will continue to grow. But the key players in it, as they always have, will change. Big, systemically important banks will have their role to play, but a universe of smaller, less-regulated, non-systemic non-banks will be the source of much of the innovation and energy that sustain the markets."

Excerpt from AdAge -- "But releasing an app pits brands against the commandeering forces of social media and games. 'Unless you have something that's an incredible application in terms of utility, it's just a tree falling in the forest,' said Scott Galloway, a marketing professor at NYU. 'No one hears it.'"

Excerpt from Financial News -- "The study, Evasive Shareholder Meetings by Yuanzhi Li of Temple University and David Yermack of New York University, was published recently by the US National Bureau of Economic Research. It investigated the relationship between where and when US companies held their AGMs in the five years to the end of 2010, and the trends in their share prices in the six months after the meeting. When companies held meetings 1,000 miles away from their headquarters, the average cumulative stock returns over the next six month were -3.7%. For companies that held their AGMs at least 50 miles from their headquarters and 50 miles from a major airport, the average abnormal stock performance over the six month was -6.8%."

Excerpt from Yahoo! Finance -- "In the second stage of the research, New York University’s Dr Adam Alter studied 500 first and last names of US lawyers. He found that those with the most pronounceable names were promoted faster than their unusually named counterparts, even though they had comparable skills and experience."

Excerpt from Fashionista -- "'We have seen a great decline in brand presence on Tumblr, which is a negative forward looking indicator for the platform,' Scott Galloway, founder of digital luxury consultancy L2, says."

Excerpt from Harvard Business Review -- "There’s more to progress than technological innovation. Breakthroughs can also result from innovations in management. Past work by another economist, Paul Romer, helps make the point. He explains that the history of progress is a history of two types of innovation: Inventions of new technologies, and introductions of new laws and social norms. We can make new tools, and we can make new rules. The two don’t always march in lockstep. In a period of time where one type of innovation flags, the other type can sometimes forge ahead."