How Uncertainty Fuels Anxiety

The Atlantic - Mar 18, 2015 - In her research, Ayelet Fishbach, a professor of behavioral science and marketing at the University of Chicago, has found that people feel more excited and work harder during tasks where the size of the reward is uncertain. But, she clarifies, "it's exciting when the stakes are not huge. We try to keep the stakes small enough so excitement doesn't at any point turn into some terror. We don't assume people would like their salary to be uncertain. It's the small uncertainties."

Why We Trust Creepy Talking Products to Sell Us Things

Chicago Magazine - Mar 16, 2015 - The answer is that a lot of us simply don’t trust our fellow humans enough. That’s the conclusion of Ann McGill, a marketing expert at the University of Chicago, who just gave a fascinating lecture to the Becker-Friedman Institute. She's a veteran academic who writes papers like "Alignable and Nonalignable Differences in Causal Explanations" and "Is That Car Smiling at Me: Schema Congruity as a Basis for the Evaluation of Anthropomorphized Products," but sometimes that academese translates into questions like: "do you trust talking dental floss more than an actual human being?"

Beware the perils of groupthink, yet meetings can still be useful

The Conversation - Mar 20, 2015 - Reid Hastie, Professor of Behavioral Science at University of Chicago--
Research I conducted with Cass Sunstein showed that leaders play a pivotal role in determining whether meetings lead to solutions or are hijacked by the tendency for "groupthink." We've highlighted several techniques managers can follow to bring out the best in their groups.

Is the Do-It-Yourself Retirement Model Failing Us?

Morningstar - Mar 24, 2015 - Hi, I'm Christine Benz for University of Chicago professor Richard Thaler was a co-author of the book Nudge. At the Morningstar Institutional Conference, I interviewed him about the intersection between behavioral finance and retirement planning. Professor Thaler, thank you so much for joining us today.

Science says chatting with strangers on your morning commute can make you happier
Business Insider - Mar 25, 2015
- But according to research conducted by behavioral scientists Nicholas Epley and Juliana Schroeder, mingling with strangers on your morning commute can improve your well-being. (Article also run on Business Insider India edition.)

ACLU Sues To Gain Access To TSA's Behavioral Profiling Program

NPR - Mar 25, 2015 - Behavioral scientists are skeptical that a TSA agent can spot someone intending to do harm based on their facial expressions or body language. Nicholas Epley is a professor at the University of Chicago. (Includes audio of Professor Epley.)

Grasp the large, let go of the small: The transformation of the state sector in China

Brookings Institution - Mar 19, 2015 - In “Grasp the Large, Let Go of the Small: The Transformation of the State Sector in China,” Chang-Tai Hsieh and Zheng (Michael) Song, both of the University of Chicago’s Booth School of Business, examine the Chinese industrial revolution over the last two decades, in which the government has privatized or closed small state-owned firms, merged large state-owned firms into large industrial groups under the control of the Chinese state, and created many new and large firms. Overall, these government actions have accounted for 23.2 percent of the aggregate growth in the industrial sector from 1998-2007, the authors find.

Thompson should stick with usual draft plan

USA Today - Mar 28, 2015 - The best evidence is a study that's well known in sports analytics circles by economists Richard Thaler of the University of Chicago and Cade Massey at the Wharton School of the University of Pennsylvania. Thaler and Massey concluded that there's not much difference in drafting ability among NFL teams, and that chance accounts for most of that difference. So the smartest strategy is to collect extra picks to increase the odds of hitting on good players. (Article also appears in the Green Bay Press Gazette and the LaCrosse Tribune.)

Indiana's anti-LGBT law is even worse than it seems

Los Angeles Times - Mar 31, 2015 - Economists from Stanford and the University of Chicago calculated in 2013 that the lowering of employment barriers against white women and black women and men accounted for as much as 20% of the productivity gains in the U.S. economy between 1960 and 2008. (Article cites research from Chang-Tai Hsieh and Erik Hurst.)

Location, location, location: Bike-sharing systems need revamp to attract more riders

ScienceDaily - Mar 18, 2015 - A new study by University of Chicago Booth School of Business Assistant Professor Elena Belavina, INSEAD Professor of Sustainable Development Karan Girotra and INSEAD Ph.D. candidate Ashish Kabra found that it is possible for cities to increase ridership without spending more money on bikes or docking points -- simply by redesigning the network.

Rajan's Wins at India's Central Bank Hint at Broader Ambitions

Bloomberg - Mar 17, 2015 - After leaving the IMF, Raghuram Rajan took up a role at the University of Chicago's business school. "He can see through to the heart of the problem and also see solutions," said Randall S. Kroszner, professor of economics at University of Chicago's Booth School of Business and a former Federal Reserve governor, said by phone.

Post-Crisis PE Mega-Deals Are Mostly Backed By 3G and Warren Buffett

Wall Street Journal - Mar 25, 2015 - 3G's time-frame also gives it an edge. Its investment holding periods are indefinite, compared to the typical five to seven-year holding period of a PE firm. That gives the firm time to find the value in its investments because the clock isn't ticking for them, said Steven Kaplan, a professor at the University of Chicago Booth School of Business. "I wouldn't expect many big [PE] deals like this," Mr. Kaplan said.

Nightly Business Report — March 18, 2015

CNBC - Mar 19, 2015 - Randy Kroszner joins us now for more analysis on the Fed. He is a former Fed governor and now professor of economics at the University of Chicago's Booth School of Business. (Randy Kroszner comes in at 5:15.)

The wait at this midtown barbershop is sometimes hours long, but customers say it's worth it

Omaha World-Herald - Mar 26, 2015 - Waiting for a haircut might make the waiting better. That's the conclusion of Ayelet Fishbach, a behavioral scientist at the University of Chicago who studies the act of waiting. "There are two effects here, actually," Fishbach said in an email. "First, the long line is a cue that the service or product is valuable (if so many people are waiting, they must know something). Second, and this is what my research shows, as people wait, they value the service and product more." (This article also appears in the North Platte Telegraph.)

Robert Shiller on crypto-politics, Piketty, and why efficient market theory is a "half-truth"

Quartz - Mar 25, 2015 - You know my co-Nobel prize winner Eugene Fama, he emerged at the University of Chicago as a graduate student right after the Ford Foundation gave them a grant to collect data on stock transactions. The CRSP tape. The Center for Research in Securities Pricing. So he had a new data set too that he exploited a lot.

You won't need all your fingers to count the women at the top of Chicago's private-equity firms

Crain's Chicago Business - Mar 28, 2015 - Ellen Rudnick, executive director of the Polsky Center for Entrepreneurship and Innovation at the University of Chicago's Booth School of Business, says that more men than women are interested in private equity even as 40 percent of last year's graduates nationwide were women. Still, women may be held back in the “heavily networked business” because female students may find fewer connections, she says.

11 Facts About Your Soul-Sucking Commute

New York Magazine - Mar 26, 2015 - There is another way to make a commute happier, but it is terrifying. When University of Chicago psychologist Nicholas Epley asked suburban Chicago commuters to chat with strangers on the train, he found that they ended up enjoying the ride that day more than they usually did. (However, I tried this last summer and cannot in good conscience recommend it.)

5 Surprising Things That May Stop You From Hiring the Right Person

Entrepreneur Magazine - Mar 30, 2015 - Professor Nicholas Epley and Ph.D. candidate Juliana Schroeder from the University of Chicago Booth School of Business published a study in February showing that a hiring manager who hears the job qualifications of an applicant rather than just reading them will view that candidate more positively.

Is Silicon Valley’s meritocracy ethos anti-diversity?

Fusion - Mar 18, 2015 - Be aware of implicit/unconscious bias in hiring. Research done by Marianne Bertrand at the University of Chicago has shown that the name of a candidate and where they live, both things prominently featured on a resume, skew hiring managers perception of a candidate. (Links to Capital Ideas write-up on Marianne Bertrand's research paper.)

Why Brazil's currency is having a real tough time

MarketWatch - Mar 27, 2015 - The Indian rupee, by contrast, has held its value against the dollar as many other emerging-market currencies have weakened, in part because Raghuram Rajan, the central bank president, the former chief economist at the International Monetary Fund and a former economics professor at the University of Chicago Booth School of Business enjoys the confidence of the international investing community. (Article also appears on Morningstar and Fidelity websites.)

Clipping Indian central bank’s wings is bad idea

Reuters - Mar 30, 2015 - Raghuram Rajan’s international stature may not be enough to protect the RBI. One drawback is that he lent his name to some of the proposals he is now fighting while he was an economist at the University of Chicago.

Real World Economics: External costs and farm filter strips

St. Paul Pioneer Press - Mar 24, 2015 - Ronald Coase, of the University of Chicago, argued persuasively that we can get an economically efficient solutions to external cost problems if we clearly define property rights and then let affected parties bargain. Give farmers the legal right to let pollutants flow into streams and those harmed can offer them payments to stop.

Value Stock ETFs: Apples-to-Apples?

Barron's - Mar 23, 2015 - How does each define value? To CRSP, Vanguard’s index provider, the concept means one thing. To S&P Dow Jones Indices, it means another. CRSP, which is affiliated with the University of Chicago Booth School of Business, calculates “value” using historical book value; earnings; sales-to-price ratios; 12-month forward earnings/price ratio and dividend yield. S&P doesn’t use the latter two factors at all, Rosenbluth says. And CSRP indexes can share constituents in ways that S&P indices cannot, meaning that a given large-cap stock might, at least for a time, be considered both “growth” and “value.”

This Fund Manager Has Consistently Beaten the S&P 500 for 40 Years

Bloomberg - Mar 17, 2015 - "Conventional active managers promised a lot they were not able to deliver," says David Booth, Dimensional’s chairman. Booth's mentor, University of Chicago finance professor Eugene Fama, who shared the Nobel prize in economics in 2013 for his work on efficient markets, is equally dismissive of stock pickers. In a 2009 paper he wrote with Kenneth French of Dartmouth College, Fama concluded that actively managed stock funds collectively return about the same as the stock market as a whole, minus the fees they charge.

10%? 20%? Apps Are Changing How We Tip

New York Times - Mar 25, 2015 - A study from behavioral economists at the University of Chicago and Columbia University showed that preset tip prices in taxis generates higher tips. (Though when tips were set too high, some people opted to not tip at all.) (References research by Ph.D. candidate Kareem Haggag.)

Do job-seekers with 'white' names get more callbacks than 'black' names?

PolitiFact - Mar 15, 2015 -Ross told PolitiFact by email that he was referencing a field study from the National Bureau of Economic Research called "Are Emily and Greg more employable than Lakisha and Jamal?" The study is more than a decade old, published July 2003. Economists Marianne Bertrand and Sendhil Mullainathan wanted to explore racial bias in the job market. (Links to Marianne Bertrand research paper.)

PunditFact: Did media ignore a Bush email controversy?

Tampa Bay Times - Mar 15, 2015 - Using fake resumes, economists Marianne Bertrand and Sendhil Mullainathan responded to help-wanted ads for a variety of positions in the fields of sales, administrative support, clerical services and customer services posted in The Boston Globe and Chicago Tribune.

Debunking the Myth of the Job-Stealing Immigrant

New York Times - Mar 24, 2015 -
And yet the economic benefits of immigration may be the most settled fact in economics. A recent University of Chicago poll of leading economists could not find a single one who rejected the proposition. (References IGM poll.)

Matchist hangs in balance as founders plan to find new leader or shutter

Chicago Tribune - Mar 19, 2015 - Stella Garber, the CEO, and Tim Jahn, a developer and the company's CTO, led a team to victory at the University of Chicago's Booth School of Business New Venture Challenge in spring 2013, the year after they co-founded the company. (Article also appears on Bloomberg Business.)

SXSW: Booth's New Venture Challenge ranks No. 4 among U.S. accelerators

Chicago Tribune - Mar 18, 2015 - The New Venture Challenge at the University of Chicago Booth School of Business ranks fourth among U.S. startup accelerators, according to the latest rankings from the Seed Accelerator Rankings Project.

10 B-Schools With the Highest GMAT Scores

U.S. News and World Report - Mar 26, 2015 - Below are the 10 business schools with the highest average GMAT scores for incoming full-time students in fall 2014. Unranked schools, which did not meet certain criteria required by U.S. News to be numerically ranked, were not considered for this report.

These Are The Top 20 US Accelerators

TechCrunch - Mar 17, 2015 - The University of Chicago New Venture Challenge, in its first year of participation, slots into fourth place on the strength of a number of strong exits, including the $2B Grubhub IPO and Braintree acquisition.

The Best Startup Accelerators Of 2015: Powering A Tech Boom

Forbes - Mar 17, 2015 - For the first time, a school-based accelerator made the top of the rankings — University of Chicago’s New Venture Challenge placed 4th.

6 Hot Jobs for MBA Graduates

U.S. News and World Report - Mar 17, 2015
- 3. Financial analyst: These professionals help companies determine when to buy and sell investments. Consider schools such as the Booth School of Business at University of Chicago and the Leonard N. Stern School of Business at New York University, which offer top finance programs.

Getting Into An Elite Business School Remains Extremely Tough

Poets and Quants - Mar 26, 2015
- In most cases, there were only minor changes in application volume and admit rates for the top MBA programs. The University of Chicago’s Booth School of Business, for example, posted an acceptance rate of 23.5% last year, up 2.5 percentage points from 21.0% a year earlier, while the Wharton School at the University of Pennsylvania reported an acceptance rate of 20.7%, two percentage points higher than the 18.7% in 2013.

GMATs Up At 10 Of Top 25 Schools

Poets and Quants - Mar 24, 2015 - Hot on Wharton’s heels for one of the largest increases among the elite schools is the University of Chicago’s Booth School of Business which is up nine points to a record 724 in the past five years.

The Ten Best Schools For Career Services

Poets and Quants - Mar 20, 2015
- According to the student survey, the top career center is actually based at the University of Chicago’s Booth School of Business. Ranked number two overall, Booth’s center averaged a 4.63 score among students. However, Booth’s ranking was hobbled by its three month placement (an impressive 94%, which only ranks 24th according to The Economist’s global data). Similarly, only 77% of Booth grads found jobs through its career center, which ranked 22nd overall.

Four Best Business Schools in Illinois

Huffington Post - Mar 18, 2015

University of Chicago Booth School of Business
Program rank: #4 (tie)
Full-time enrollment: 1,181
Tuition:61,520 per year

Haas Tops New Part-Time MBA Ranking

Poets and Quants - Mar 16, 2015 - A familiar cast of big brand business schools dominates the top of the list, with Chicago Booth, Northwestern Kellogg, New York University’s Stern School, and UCLA’s Anderson School rounding out the top five.

Business School Rankings: Amazingly Stagnant At The Top

Poets and Quants - Mar 31, 2015 - Since 1996, seven schools have been in the top ten EVERY SINGLE YEAR! The super-elite M7 schools (Harvard, Stanford, Wharton, MIT Sloan, Kellogg, Booth and Columbia) have dominated the rankings as far back as I could get data. No wonder the competition for these programs is so high.


Randall Kroszner: "El principal riesgo es que haya un alza en las expectativas inflacionarias y la Fed no actúe"

Pulso - Mar 20, 2015 - Randall Kroszner, profesor de Economía en Chicago Booth y ex gobernador de la Fed, vio al central preocupado porque la inflación no repunta. El economista dice que puede que la Fed piense que los factores que empujaban a la baja la inflación que creían transitorios, ya no lo sean tanto. De todas maneras el economista, que fue gobernador de la Fed en plena crisis entre 2006 y 2009, confía en que lo más probable es que la inflación en EEUU despegue como se supone.

How to read the Fed's statement

CNBC Asia - Mar 18, 2015 - Randy Kroszner, former governor of the Federal Reserve, says the central bank is still concerned about inflation and jobs hence it remains deliberative about when to raise interest rates.

Singapore’s economic miracle uncovered

Financial Times - Mar 24, 2015 - Chang-Tai Hsieh, an academic now at Chicago Booth University, was skeptical of the accuracy of the Singaporean national accounts, which he believed significantly overstated the amount of investment spending which went on in the city-state in the decades to 1990.

Hanergy: The 10-minute trade

Financial Times - Mar 25, 2015 - Eric Budish, associate professor of economics at the University of Chicago Booth School and an expert on financial markets, says it was highly unlikely that the late day price gains had occurred by random chance. He examined the raw data from the FT. "Having looked at the data I can say that it’s certainly an unusual pattern, extremely unlikely to occur by chance," he says. Mr Budish pointed to the persistence of the pattern over time. The fact that the pattern did not depend on just a few pieces of outlying data was, he says, a reason to believe it was not due to random movements. (Article also appears on Apple Daily,,

US Fed Hints at Interest Rate Rise

BBC Radio - Mar 19, 2015 - The Fed may raise interest rates this year for the first time since the financial crisis. We speak to Randall Kroszner of the University of Chicago Booth School of Business, a former Federal Reserve board member, about what that could mean for the US and beyond. (Randall Kroszner starts about 2:25.)

US markets jump as Fed signals cautious end to near-zero interest rates

The Guardian - Mar 19, 2015 - Randy Kroszner, Norman R. Bobins professor of economics at the university of Chicago Booth school of business and former governor of the Fed, said Yellen had been "very skillful" in the language used to signal the end of the low rate period.

Raghuram Rajan's wins at RBI hint at broader ambitions

Live Mint - Mar 17, 2015 - After leaving the IMF, Raghuram Rajan took up a role at the University of Chicago's business school. "He can see through to the heart of the problem and also see solutions," said Randall S. Kroszner, professor of economics at University of Chicago's Booth School of Business and a former Federal Reserve governor, said by phone.

NSW state election: what do governments need to own?

Australian Financial Review - Mar 18, 2015 - Yet sometimes government should not just pay for things, it should own them, too. Not often, but sometimes. And it's useful to understand when and why. The most insightful example is prisons – as Harvard economists Oliver Hart and Andrei Shleifer pointed out in 1997, along with Robert Vishny of the University of Chicago, in a now classic academic paper in the world's oldest and most highly regarded economics journal: The Quarterly Journal of Economics.

Las mujeres aún están fuera de la cima corporativa

El Financiero - Mar 20, 2015 - Un documento de trabajo inédito de Marianne Bertrand, Sandra E. Black, Sissel Jensen y Adriana Lleras Muney encontró que consejeras nombradas después de la reforma estaban mejor calificadas que sus predecesores y que la brecha de género en los ingresos dentro de las juntas cayó. (Article also published in El Economista.)

Stemmen kan gi deg jobben - Mar 17, 2015 - Det viser en ny studie fra Universitetet i Chicago, Booth School of Business, som blir publisert i kommende utgave av The Journal of Psychological Science. ... Studien er gjort av professor Nicholas Epley og stipendiat Juliana Schroeder. Epley konkluderer: – Når man skal formidle kompetanse, er det viktig å bli hørt - bokstavelig talt.

Entrepreneurs use business school tool to buy companies globally

Financial Times - Mar 29, 2015 - Furthermore, only a few schools have it on their curriculum, such as Insead in France and Singapore, and Harvard and Chicago Booth in the US.


Why Soaking the Rich Won't Fix Income Inequality

Bloomberg - Mar 30, 2015 - Jan Zilinsky at the University of Chicago took 1,300 people and told some of them about income distribution in the U.S. The "informed" respondents became far more pessimistic about the American dream, in particular the notion that hard work is enough to get ahead.

Avoiding the capital guzzlers to Net niche players

Hindu BusinessLine - Mar 23, 2015 - The venture capital firm has always invested in internet-driven businesses, not necessarily of the Flipkart or Snapdeal type, which, Sarath Naru, Ventureast’s Managing Partner, describes as a "winner takes all" kind of model. ... "That is the game we have not played. We believe in backing companies where capital is not the primary competitive advantage. There are other advantages you need to show. They will be a little bit more niche businesses," says Sarath, a B Tech from IIT-Madras and an MBA in Finance from the Booth School, University of Chicago.

BU Is the Latest to Rename Its Business School for a Donor

Boston Magazine - Mar 30, 2015 - David G. Booth gave $300 million to rename the University of Chicago business school the Booth School of Business in 2008.

BU Renames School After $50 Million Gift

Poets and Quants - Mar 31, 2015 - The gift is one of the largest given to a business school, eclipsed by only 13 other benefactors, including David Booth whose $300 million to the University of Chicago is the largest ever to a business school and Dorothy and Robert King’s $150 million pledge to Stanford University’s Graduate School of Business.

Leadership Lessons From Chevron CEO John Watson

Forbes - Mar 27, 2015 - John Watson, 58, has been CEO of Chevron since 2010. He’s a lifer at the oil and gas giant, joining as a financial analyst in 1980 straight out of business school at the University of Chicago.

America at Large: Making all right moves in bid to unearth new Bobby Fischer

Irish Times - Mar 26, 2015 - Growing up, Rex Sinquefield found solace in chess, flirted with entering the priesthood, and later came under the influence of Nobel prize-winning economist Eugene Fama at the University of Chicago.

Keene's Robertson a 'true Renaissance man'

Keene Sentinel - Mar 23, 2015 - Four years later, Ben Robertson was accepted into the MBA program at the University of Chicago Booth School of Business, one of the top feeder schools to the finance industry in the country. There he studied with Robert Fogel, winner of the 1993 Nobel Memorial Prize in Economic Sciences. He also led a team in the Edward L. Kaplan New Venture Challenge, where students turn ideas into real businesses, and won the $20,000 first prize. He graduated in 2001.

Frederick Pipin, steel door exec who raced cars, dies at 77

Chicago Tribune - Mar 22, 2015 - Back in Chicago, Frederick L. Pipin returned to school, earning a master's degree from the University of Chicago's business school.

Women in Business: Denise Delahorne, DDB Worldwide Communications Group

Huffington Post - Mar 20, 2015 - Denise Delahorne began her career in advertising after receiving her MBA in Finance and Marketing from The University of Chicago.

Business people

Telegram and Gazette - Mar 29, 2015
- Eric Jacquier holds a doctoral degree from the University of Chicago Booth School, an MBA from UCLA and an electrical engineering degree from Supélec in France. He holds the professorship in derivative securities at the University of Montreal Business School and is a visiting professor at Sloan and Wharton and a faculty member at Boston College and Cornell University.

Business leaders in the news

Detroit Free Press - Mar 29, 2015
- David Helt joined Residex, a North American-based independent distributor of professional pest control and turfgrass management supplies, as turf division director. Previously, he was U.S. manager of sales and marketing for direct solutions. He has more than a decade of experience in pricing, financial planning, analysis, strategy and sales. He graduated from the University of Chicago with a master's degree in business administration.

You’ll be surprised by where the most powerful Fortune 500 CEOs went to college

Business Insider - Mar 27, 2015 - 3. John S. Watson (Chevron) — University of California, Davis (BA), University of Chicago (MBA) (Article also appears on Business Insider's international sites.)