April 2, 2015

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Incentives that Lead to a Better-Trained Workforce

A one-time outcome-based financial incentive, if based on proven psychological techniques, could help workers embrace a long-term and sustained interest in training,says Teck Ho, the William Halford Jr. Family professor of marketing at Berkeley-Haas. (03/16/2015)

Assoc. Prof. Zsolt Katona
Content Creators Leave Social Networks When Messaging Gets Too Easy

It’s not much harder or more expensive to send a tweet or a Facebook post to hundreds or even thousands of people than to just a handful. So you’d think that the ease of communicating with lots of people via social networks would result in more and more people sharing their thoughts, political views, and cat videos.But that’s not the case, say Associate Prof. Zsolt Katona and Prof. Ganesh Iyer at UC Berkeley’s Haas School of Business. (02/27/2015)

Asst. Prof. Clayton Critcher
Marketing Prof. Clayton Critcher Honored with SAGE Young Scholars Award

At Berkeley-Haas since 2010, Marketing Prof. Clayton Critcher continues to build his career by studying how people navigate life as economic, political, and moral beings and by shedding light on consumer behavior.In recognition of his body of research, Prof. Critcher has received a 2015 SAGE Young Scholars Award from the Foundation for Personality and Social Psychology (FPSP). (02/09/2015)

Asst. Prof. Sameer Srivastava
Keep Your Enemies Close? Study Finds Greater Proximity to Opponents Leads to More Polarization

Encouraging adversaries to have more interpersonal contact to find common ground may work on occasion, but not necessarily in the U.S. Senate, according to research co-authored by Sameer B. Srivastava, assistant professor, Haas Management of Organizations Group. (02/01/2015)

The Other “F” Word: Capitalizing on Failure

Most would agree with the old adage to learn from your mistakes—but how? In their new book, The Other “F” Word: How Smart Leaders, Teams, and Entrepreneurs Put Failure to Work (Wiley, March 23, 2015), Berkeley-Haas lecturers John Danner and Mark Coopersmith, MBA 86, offer a seven-step framework for transforming failure into increased innovation, improved employee engagement, and accelerated company growth.  (01/20/2015)

Prof. John Quigley
Quigley Medal Honors Late Real Estate Professor

The American Real Estate and Urban Economics Association has established the John M. Quigley Medal in memory of the late Berkeley-Haas housing expert and his extensive body of scholarly work in the fields of urban economics and housing policy. Prof. Quigley passed away in May 2012. He was a faculty member of the Haas School of Business’ Fisher Center for Real Estate and Urban Economics since 1998, the Department of Economics since 1981, and the Goldman School of Public Policy since 1979. Quigley’s work focused on housing markets, energy efficient buildings, homelessness, and racial discrimination. (12/19/2014)

Prof. Henry Chesbrough
Open Innovation Found to Be Basic Ingredient of Chez Panisse’s Success

In its 43-year history, Chez Panisse restaurant in Berkeley, Calif. has evolved as the purveyor of organic, local, and exquisitely prepared food known as California cuisine. Its menu recently featured "grilled Wolfe Ranch quail with chestnuts" and "Comté cheese soufflé with DeeAnn’s garden salad.” Chez Panisse’s strategic use of branding its suppliers’ names on the menu is a prime example of the "open innovation” business model at work, according to a case study published in California Management Review. (12/17/2014)

Prof. Jennifer Chatman
Political Correctness in Diverse Workplace Fosters Creativity

People may associate political correctness with conformity but new research by Jennifer Chatman finds it also correlates with creativity in work settings. Imposing a norm that sets clear expectations of how women and men should interact with each other into a work environment unexpectedly encourages creativity among mixed-sex work groups by reducing uncertainty in relationships. The study highlights a paradoxical consequence of the political correctness (PC) norm.  (11/25/2014)

Prof. Ben Hermalin
Limiting Internet Congestion A Key Factor in Net Neutrality Debate

Too many vehicles on the highway inevitably slow down traffic. On the Internet information highway, consumers value high-speed Internet service, but there is little reason to think broadband traffic congestion will improve if the Federal Communications Commission abandons net neutrality, according to research by Ben Hermalin and Nicholas Economides. Their paper, “The Economics of Network Neutrality” finds that if Internet Service Providers known as ISPs initiate price discrimination in their pricing, a “recongestion effect” will occur.  (11/03/2014)

Asst. Prof. Amir Kermani
Did Low Interest Rates Boost Household Spending?

Real estate Asst. Prof. Amir Kermani writes about his new study that suggests that lower interest rates and reduced mortgage payments prompt consumer spending (especially in low-income households) but they also encourage consumers to voluntarily deleverage or attempt to pay off existing debt which dampens the effectiveness of monetary policy.  (10/13/2014)

John Morgan
Entrepreneurs Aren’t Overconfident Gamblers, Study Finds

Leaving one’s job to become an entrepreneur is inarguably risky. But it may not be the fear of risk that makes entrepreneurs more determined to succeed. A new study finds entrepreneurs are also concerned about what they might lose in the transition from steady employment to startup.  (09/09/2014)

Asst. Prof. Ming Hsu
Study links honesty to prefrontal region of the brain

Are humans programmed to tell the truth? Not when lying is advantageous, says a new study led by Assistant Professor Ming Hsu at UC Berkeley’s Haas School of Business. The report ties honesty to a region of the brain that exerts control over automatic impulses. (09/08/2014)

Prof. David I. Levine
Prof. David Levine Wins Research Competition to Study Federal OSHA Effectiveness

Economist Levine and his research team are one of three winners of a competition sponsored by the Coalition for Evidence-Based Policy. They will receive a $96K grant to help conduct a new study on the effects of OSHA inspections. (07/21/2014)

Assoc. Prof. Steven Tadelis
Tapping real-time financial data can improve economic policymaking

Measuring the nation’s economic health has long been a slow, costly and imprecise exercise, but Assoc. Prof. Steven Tadelis helped develop a new way to measure real-time consumer behavior that could vastly improve economic policymaking. “The data generated by online and mobile financial applications such as Check, as well as data from social media, online marketplaces and e-commerce sites can be analyzed to address questions that policymakers, firms and individuals must answer to make better decisions,” said Tadelis. (07/17/2014)

Assoc. Prof. Terrence Hendershott
Fast Forward: High-speed trading debunked

High-frequency trading (HFT) drew national attention earlier this year from author Michael Lewis’ latest book, Flash Boys. But Finance Professor Terrence Hendershott has been studying its effects since 2005, when investor-specific data on algorithmic trading transactions started to become available. Hendershott weighs in on whether high-frequency trading is good, bad, or simply inevitable. Watch video. (07/09/2014)

Asst. Prof. Ming Hsu
Your Genes Affect Your Betting Behavior

Asst. Prof. Ming Hsu, Haas Marketing Group, studies neuroeconomics. His recent research shows that betting decisions in a simple competitive game are influenced by the specific variants of dopamine-regulating genes in a person’s brain. “This study shows that genes influence complex social behavior, in this case strategic behavior,” said Hsu, study leader Ming Hsu, “We now have some clues about the neural mechanisms through which our genes affect behavior. (06/16/2014)

Prof. Paul Gertler
Study Shows Early Childhood Stimulation Intervention in Jamaica Yields Better Pay in Adulthood

In the May 30, 2014 edition of the journal, Science, researchers find that early childhood development programs are particularly important for disadvantaged children in Jamaica and can greatly impact an individual’s ability to earn more money as an adult. The 20-year study, “Labor Market Returns to an Early Childhood Stimulation Intervention in Jamaica” by Professor Paul Gertler tracks the employment status of adults who once lived in the poor Kingston neighborhood as toddlers in the 1980’s. (05/29/2014)

Asst, Prof. Clayton Critcher
Study Discovers the Downside of African-American Success Stories

African-Americans such as Brown University President Ruth Simmons, Nobel Laureate Toni Morrison, and of course President Barack Obama have reached the pinnacle of success in historically white domains. But a new study by marketing Asst. Prof. Clayton Critcher finds there is a downside to African-American success stories: these positive examples prompt white Americans to think less successful African-Americans simply need to apply more effort to achieve their own success.  (05/01/2014)

Leanne ten Brinke, Ph.D.
The unconscious mind can detect a liar--even when the conscious mind fails

When detecting deceit, your unconscious instincts may be more accurate than conscious thought while making judgments about others, according to research co-authored by Leanne ten Brinke, a postdoctoral fellow at the University of California, Berkeley’s Haas School of Business. (03/27/2014)

Ming D. Leung
Tricks of the Trade: Study Suggests How Freelancers Can Land More Jobs

As an increasing number of freelancers depend on the virtual workplace, how can they make themselves more attractive to potential employers? New research by Ming D. Leung suggests freelancers who demonstrate work commitment through an incremental career path, by moving between similar — but not identical — types of jobs, are the most likely to be hired.  (02/03/2014)

Assoc. Prof. Steven Tadelis
Study Finds Paid Search Ads Don't Always Pay Off

Businesses spend billions to reach customers through online advertising but just how effective are paid search ads? Using data from eBay, economist Steven Tadelis at UC Berkeley’s Haas School of Business compared whether consumers are more likely to click on paid ads than on free, generic search results and found that advertisers may not be getting their money’s worth.  (01/16/2014)

The Politics of Precaution by David Vogel
Prof. David Vogel receives second book award for The Politics of Precaution

The journal Governance has awarded Professor David Vogel the 2013 Charles H. Levine Memorial Book Prize for his book The Politics of Precaution: Regulating Health, Safety, and Environmental Risks in Europe and the United States (Princeton University Press, 2012). (09/17/2013)

Asst. Prof. Clayton Critcher
Truth or Consequences? The Negative Results of Concealing Who You Really Are on the Job

Most people know that hiding something from others can cause internal angst, but new research by marketing Asst. Prof. Clayton Critcher suggests the consequences go far beyond emotional strife: Having to conceal information about oneself (e.g., sexual orientation) during an interaction disrupts one’s intellectual acuity, physical strength, and interpersonal grace—skills and abilities that are critical to workplace success. (09/17/2013)

Assoc. Prof. Don Moore
Are You Hiring the Wrong Person?

Assoc. Prof. Don Moore finds employment managers tend to ignore the context of past performance. “We would like to believe that the people who are making judgments that affect our lives—where we get hired or what school we are admitted to—have the wisdom to understand who we are, what we are capable of, what shortcomings aren’t our fault,” says Moore, “But our research shows people evaluating us have a great deal of trouble considering situational factors or context.”  (07/25/2013)

Asst. Prof. Yaniv Konchitchki
Making a Case for Transparent Corporate Accounting Information

A new study by accounting professor Yaniv Konchitchki finds greater transparency in firms’ earnings has a positive effect on the bottom line. "Cost of Capital and Earnings Transparency" (published in the Journal of Accounting and Economics, April-May 2013) establishes that the transparency of a firm’s accounting earnings is a telling indicator of the company’s cost of capital and thus its valuation, according to Konchitchki. (06/12/2013)

Prof. Martin Lettau
Finance Prof. Martin Lettau Honored with 2013 AQR Insight Award

Finance Professor Martin Lettau has received the 2013 AQR Insight Award for his research about how an extension of the widely taught capital asset pricing model can explain returns of equity, commodity, sovereign bonds, and currencies and offer a unified risk view of these investments. The winning paper, “Conditional Currency Risk Premia,” is co-authored with Haas alumnus Matteo Maggiori, Ph.D. 12, and Michael Weber, a current Haas PhD student. (05/24/2013)

Prof. Paul Gertler
Bonuses for Doctors Pay Off for Patients

Everyone knows money talks. Prof. Paul Gertler found this to be the case in Rwanda, where, in conjunction with the national government, he evaluated a new and novel pay-for- performance model for the health care industry designed to increase access to high quality maternal and child health services.He outlines his findings in his paper, “Using Performance Incentives to Improve Medical Care Productivity and Health Outcomes,” co-authored by Christel Vermeersch, a World Bank senior economist. (05/13/2013)

Asst. Prof. Panos Patatoukas
Corporate Accounting Earnings Data Relevant for Determining Value of the Aggregate Stock Market

While teaching a course on financial information analysis, Asst. Prof. Panos Patatoukas observed that capital market participants and policy makers are increasingly turning to accounting earnings data from corporate financial reports for hints regarding the prospects of the aggregate stock market. This observation indicated that, at the aggregate level, accounting earnings data could be relevant for gauging the value of the entire stock market. (04/01/2013)

Prof. Ross Levine
Study Finds Successful Entrepreneurs Share a Common History of Getting in Trouble as Teenagers

Independence. Creativity. Money. Those are the benefits associated with successful entrepreneurs such as Steve Jobs and Mark Zuckerberg. But is being an entrepreneur really more lucrative than working for a salary? And who is best cut out to succeed? A new study by Professor Ross Levine of the Haas Economic Analysis and Policy Group answers both of these questions.  (02/19/2013)

Prof. Patricia Dechow
Investor Beware: Stock Analysts’ Rounded Forecasts Are More Inaccurate and Upwardly Biased

In an era when a stock can take a beating if earnings fall a penny short of analysts' predictions, what factors influence whether forecasters seek precision to the penny or round off -- and how should their choice affect investors? Accounting Professor Patricia Dechow found that rounded forecasts are not only significantly more inaccurate than those that strive for penny-precision but also significantly more upwardly biased. The sharpest differences in both respects occur in companies with annual earnings per share of less than $10. (01/22/2013)