At Columbia Business School, our faculty members are at the forefront of research in their respective fields, offering innovative ideas that directly impact the practice of business today. A quick glance at our publication on faculty research, CBS Insights, will give you a sense of the breadth and immediacy of the insight our professors provide.
As a student at the School, this will greatly enrich your education. In Columbia classrooms, you are at the cutting-edge of industry, studying the practices that others will later adopt and teach. As any business leader will tell you, in a competitive environment, being first puts you at a distinct advantage over your peers. Learn economic development from Ray Fisman, the Lambert Family Professor of Social Enterprise and a rising star in the field, or real estate from Chris Mayer, the Paul Milstein Professor of Real Estate, a renowned expert and frequent commentator on complex housing issues. This way, when you complete your degree, you'll be set up to succeed.
Columbia Business School in conjunction with the Office of the Dean provides its faculty, PhD students, and other research staff with resources and cutting edge tools and technology to help push the boundaries of business research.
Specifically, our goal is to seamlessly help faculty set up and execute their research programs. This includes, but is not limited to:
All these activities help to facilitate and streamline faculty research, and that of the doctoral students working with them.
The article offers the authors' views on expatriate management programs and the benefits from executives interacting with the people and institutions of the host country. The idea that international experience or interaction between foreign managers and local people will help managers become more creative, entrepreneurial, and successful is discussed. The concept of integrative complexity in bi-cultural managers which enhances job performance is mentioned.
The Kidney Case is multi-person exercise that involves the allocation of a single kidney. Students read profiles of eight candidates for the kidney and make a first allocation decision. Each candidate was designed to be high on some allocation principles but low or unknown on others (e.g., best, match, time in cue, age, personal responsibility for disease, future benefits to society, etc.). Then, students are put into groups and assigned to advocate for one of the candidates. Each group will prepare and give a 3-minute presentation on why their candidate should receive the kidney.
Emissions abatement alone cannot address the consequences of global warming for weather disasters. We model how society adapts to manage disaster risks to capital stock. Optimal adaptation — a mix of firm-level efforts and public spending — varies as society learns about the adverse consequences of global warming for disaster arrivals. Taxes on capital are needed alongside those on carbon to achieve the first best.
What are the sources of the returns to education? We study the allocation of higher education graduates from public institutions in Ohio across firms. We present three results. First, we confirm findings in the earlier literature of large pay differences across degrees. Second, we show that up to one quarter of pay premiums for higher degrees are explained by between-firm pay differences. Third, higher education degrees are associated with greater representation at the best-paying firms.
This article focuses on the role of threats in negotiations. Broadly speaking, a threat is a proposition that issues demands and warns of the costs of noncompliance. Even if neither party resorts to them, potential threats shadow most negotiations. Researchers have found that people actually evaluate their counterparts more favorably when they combine promises with threats rather than extend promises alone. Whereas promises encourage exploitation, the threat of punishment motivates cooperation.
Collateralized Debt Obligations (CDO) played a key role in the growth of Asset-Backed Security (ABS) issuance between 2004 and 2007 by providing a mechanism for lower-rated ABS to be used as collateral for the creation of AAA securities. Using a database published by Pershing Square Capital Management covering all of the assets underlying 528 CDOs and CDO-Squareds issued from 2005 through 2007 and using rating history and other information from the ABSNet database, we compare the characteristics and performance of ABS observed in a CDO with other ABS not observed in a CDO.
Web 2.0 provides gathering places for internet users in blogs, forums, and chat rooms. These gathering places leave footprints in the form of colossal amounts of data regarding consumers' thoughts, beliefs, experiences, and even interactions. In this paper, we propose an approach for firms to explore online user-generated content and "listen" to what customers write about their and the competitors' products. Our objective is to convert the user-generated content to market structures and competitive landscape insights.
Despite the continuing, adverse impact of discrimination on the lives of racial and ethnic minorities, the denial of discrimination is commonplace. Four experiments investigated the efficacy of perspective taking as a strategy for combating discrimination denial. Participants who adopted a Black or Latino target's perspective in an initial context were subsequently more likely to explicitly acknowledge the persistence of intergroup discrimination than were non-perspective takers (Experiments 1–3) or participants who adopted a White target's perspective (Experiment 1).
Many mobile applications retrieve content from remote servers via user generated queries. Processing these queries is often needed before the desired content can be identified. Processing the request on the mobile devices can quickly sap the limited battery resources. Conversely, processing user queries at remote servers can have slow response times due communication latency incurred during transmission of the potentially large query. We evaluate a network-assisted mobile computing scenario where mid-network nodes with “leasing” capabilities are deployed by a service provider.
We consider the optimal design of mortgage-backed securities (MBS) in a dynamic setting in which a mortgage underwriter with limited liability can engage in costly hidden effort to screen borrowers and can sell loans to investors. We show that (i) the timing of payments to the underwriter is the key incentive mechanism, (ii) the maturity of the optimal contract can be short, and that (iii) bundling mortgages is efficient as it allows investors to learn about underwriter effort more quickly, an information enhancement effect.
Ichino and Moretti (2009) find that menstruation may contribute to gender gaps in absenteeism and earnings, based on evidence that absences of young female Italian bank employees follow a 28-day cycle. We find this evidence is not robust to the correction of coding errors or small changes in specification, and we find no evidence of increased female absenteeism on 28-day cycles in data on school teachers.
Some conflicts are experienced as depleting and exhausting whereas others are experienced as stimulating and invigorating. We explored the possibility that the focus of perceived threat in conflict determines whether it produces taxing stress or vitalizing arousal. Studies 1 and 2 established that attending to threats to interests, relationships, and identities during interpersonal conflict differentially relates to motivational goals, empathy and perspective-taking, femininity, and a collectivistic self-construal.
Based on a sample of highly leveraged Austrian ski hotels undergoing debt restructurings, we show that reducing a debt overhang leads to a significant improvement in operating performance. Changes in leverage in the debt restructurings are instrumented with Unexpected Snow, which captures the extent to which a ski hotel experienced unusually good or bad snow conditions prior to the debt restructuring.
Mad Men depicts advertising agency life as it was decades ago. The practice of creative meetings, like our culture, has evolved. But the aims, conflicts, displays, and compromises in advertising meetings are not markedly different than they were in the 1960s. This article provides some observations regarding creative meetings based on participant observation along with Mad Men examples.
I investigate the contribution of pharmaceutical innovation to recent longevity growth in Germany and France. First, I examine the effect of the vintage of prescription drugs (and other variables) on the life expectancy and age-adjusted mortality rates of residents of Germany, using longitudinal, annual, state-level data during the period 2001–2007. The estimates imply that about one-third of the 1.4-year increase in German life expectancy during the period 2001–2007 was due to the replacement of older drugs by newer drugs.
Two quantitative meta-analyses examined how the presence of visual channels, vocal channels, and synchronicity influences the quality of outcomes in negotiations and group decision making. A qualitative review of the literature found that the effects of communication channels vary widely and that existing theories do not sufficiently account for these contradictory findings.
We pose a fundamental question in understanding how to identify and design successful communities: What factors predict whether a community will grow and survive in the long term? Social scientists have addressed this question extensively by analyzing offline groups which endeavor to attract new members, such as social movements, finding that new individuals are influenced strongly by their ties to members of the group.
We study economies of asymmetric information with observable types. Trade takes place in lotteries. Individuals face a standard budget constraint, while the incentive compatibility constraints are imposed on the production set of the intermediaries. This formalization encompasses moral hazard and private information economies. Equilibrium allocations are constrained efficient, but, contrary to what stated for example in Jerez (2005), the set of equilibrium allocations may be empty and the Second Welfare Theorem may fail. This happens for two reasons.
Quantity discount pricing is a common practice used by business-to-business and business-to-consumer companies. A key characteristic of quantity discount pricing is that the marginal price declines with higher purchase quantities. In this paper, we propose a choice-based conjoint model for estimating consumer-level willingness-to-pay (WTP) for varying quantities of a product and for designing optimal quantity discount pricing schemes. Our model can handle large quantity values and produces WTP estimates that are positive and increasing in quantity at a diminishing rate.
We develop a dynamic theory of resource wars and study the conditions under which such wars can be prevented. Our focus is on the interaction between the scarcity of resources and the incentives for war in the presence of limited commitment. We show that a key parameter determining the incentives for war is the elasticity of demand. Our first result identifies a novel externality that can precipitate war: price-taking firms fail to internalize the impact of their extraction on military action.
We use data from credit report and deeds records to better understand the extent to which second liens contributed to the housing crisis by allowing buyers to purchase homes with small down payments. At the top of the housing market second liens were quite prevalent, with as many as 45 percent of home purchases in coastal markets and bubble locations involving a piggyback second lien. Owner-occupants were more likely to use piggyback second liens than investors.
We develop an incomplete-markets q-theoretic model to study entrepreneurship dynamics. Precautionary motive, borrowing constraints, and capital illiquidity lead to underinvestment, conservative debt use, under-consumption, and less risky portfolio allocation. The endogenous liquid wealth-illiquid capital ratio w measures time-varying financial constraint. The option to accumulate wealth before entry is critical for entrepreneurship. Flexible exit option is important for risk management purposes.
Examining theory and practice, Advertising and Anthropology is a lively and important contribution to the study of organizational culture, consumption practices, marketing to consumers and the production of creativity in corporate settings. The chapters reflect the authors' extensive lived experience as professionals in the advertising business and marketing research industry. Essays analyze internal agency and client meetings, competitive pressures and professional relationships and include multiple case studies.
It is widely accepted that entrepreneurial creation affects destruction, as new and better organizations, technologies and transactions replace old ones. This phenomenon is labeled creative destruction, but it might more accurately be called destructive creation, given the driving role of creation in the process. We reverse the typical causal ordering, and ask whether destruction may drive creation. We argue that economic systems may get stuck in suboptimal equilibria due to path dependence, and that destruction may sweep away this inertia, and open the way for entrepreneurship.
We present a novel linear program for the approximation of the dynamic programming cost-to-go function in high- dimensional stochastic control problems. LP approaches to approximate DP have typically relied on a natural “projection” of a well-studied linear program for exact dynamic programming. Such programs restrict attention to approximations that are lower bounds to the optimal cost-to-go function.
The game of golf involves many different types of shots: long tee shots (typically hit with a driver), approach shots to greens, shots from the sand, putts on the green, and others. While it is easy to determine the winner in a golf tournament by counting strokes, it is not easy to assess which factors most contributed to the victory. In this paper we apply an analysis based on strokes gained (previously termed shot value) to assess the performance of golfers in different parts of the game of golf. Strokes gained is a simple and intuitive measure of the contribution of each shot to a go
Do situational cues to individuals' social identities shift the way they look at objects? Do such shifts hinge on the structure of individuals' self-concept? We hypothesized individuals with integrated identities would exhibit attentional biases congruent with identity cues (assimilative response), whereas those with nonintegrated identities would exhibit attentional biases incongruent with identity cues (contrastive response).
We consider a general class of network revenue management problems, where mean demand at each point in time is determined by a vector of prices, and the objective is to dynamically adjust these prices so as to maximize expected revenues over a finite sales horizon. A salient feature of our problem is that the decision maker can only observe realized demand over time, but does not know the underlying demand function which maps prices into instantaneous demand rate.
An fMRI study was conducted with unfamiliar and familiar (strong and weak) brands to assess linguistic encoding and retrieval processes, and the use of declarative and experiential information, in brand evaluations. As expected, activations in brain areas associated with linguistic encoding were higher for unfamiliar brands, but activations in brain areas associated with information retrieval were higher for strong brands. Interestingly, weak brands were engaged simultaneously in both processes.
This paper argues that there is a Coasean Bargain available to banks, Long-term Investors, and Bank Regulators around a particular form of "Contingent Capital." By purchasing rights to issue equity in crisis events at a pre-specified price from Long-term Investors, banks can ensure that they will have sufficient regulatory capital available when they need it most: in a crisis. By selling these rights (effectively, a form of crisis insurance) long-term investors can monetize their counter-cyclical investments strategies in banks and, thus, obtain an adequate return as long-term investors.
In the standard certainty multiperiod demand problem it is well-known that if a consumer's preferences are log additive (or equivalently Cobb-Douglas), demand in each period is myopic in the sense of being independent of future prices. As a result, less stringent informational requirements in terms of price expectations are imposed on the consumer. Given the general aversion of Fisher (1930), Hicks (1965) and Lucas (1978), among others, to requiring preferences to be additively separable, it is natural to ask whether myopia can hold for non-additive forms of utility.
We propose that managers adept at thinking about their cultural assumptions (cultural metacognition) are more likely than others to develop affect-based trust in their relationships with people from different cultures, enabling creative collaboration. Study 1, a multi-rater assessment of managerial performance, found that managers higher in metacognitive cultural intelligence (CQ) were rated as more effective in intercultural creative collaboration by managers from other cultures.
This paper discusses some existing and potential roles of financial reporting disclosures. The focus is on what are conventionally termed mandatory disclosures, although as Sunder (1997) points out the distinction between mandatory and voluntary is somewhat arbitrary. The paper views disclosure through the lens of incentives. Accounting disclosures are a component of the broad set of information shareholders, debt holders, and other accountees have to assess the stewardship of accountors.
We propose a method for estimating substitute and lost demand when only sales and product availability data are observable, not all products are displayed in all periods (e.g., due to stock-outs or availability controls), and the seller knows its aggregate market share. The model combines a multinomial logit (MNL) choice model with a non-homogeneous Poisson model of arrivals over multiple periods. Our key idea is to view the problem in terms of primary (or first-choice) demand; that is, the demand that would have been observed if all products had been available in all periods.
A series of laboratory and field experiments test the effect of considering options sequentially (one at a time) versus simultaneously (all at once) on an individual's satisfaction with and commitment to their chosen option. The results converge to reveal a detrimental effect of choosing from sequentially presented options. Unlike simultaneously presented options, the sequential presentation of options evokes hope for a better option to become available in the future and regret from potentially passing one up.