Can Uber evolve – quickly? – Court Chilton

MIT Sloan Senior Lecturer Court Chilton

From Entrepreneur

I’m a huge fan of Uber and use its services all the time. Still, I can’t deny it’s been a tough couple of weeks for Uber. A blog post by a woman employee who credibly seems to be claiming sexual harassment and retaliation for making those claims was widely covered in the media. Days later, a video that showed the CEO arguing vehemently with an Uber driver about rates went viral. Plus, revelations about “grey-balling” — preventing certain people from accessing the Uber system — put the company in an unfavorable light with a number of different stakeholders.

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How to boil down a pile of diverse research papers into one cohesive picture–Mohammad S. Jalali

MIT Sloan Research Scientist Mohammad Jalali

From The Conversation 

From social to natural and applied sciences, overall scientific output has been growing worldwide – it doubles every nine years.

Traditionally, researchers solve a problem by conducting new experiments. With the ever-growing body of scientific literature, though, it is becoming more common to make a discovery based on the vast number of already-published journal articles. Researchers synthesize the findings from previous studies to develop a more complete understanding of a phenomenon. Making sense of this explosion of studies is critical for scientists not only to build on previous work but also to push research fields forward.

My colleagues Hazhir Rahmandad and Kamran Paynabar and I have developed a new, more robust way to pull together all the prior research on a particular topic. In a five-year joint project between MIT and Georgia Tech, we worked to create a new technique for research aggregation. Our recently published paper in PLOS ONE introduces a flexible method that helps synthesize findings from prior studies, even potentially those with diverse methods and diverging results. We call it generalized model aggregation, or GMA.

Pulling it all together

Narrative reviews of the literature have long been a key component of scientific publications. The need for more comprehensive approaches has led to the emergence of two other very useful methods: systematic review and meta-analysis.

In a systematic review, an author finds and critiques all prior studies around a similar research question. The idea is to bring a reader up to speed on the current state of affairs around a particular research topic.

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The best retailers combine bricks and clicks — Richard Schmalensee

MIT Sloan Professor Richard Schmalensee

MIT Sloan Professor Richard Schmalensee

From Harvard Business Review

Retail profits are plummeting. Stores are closing. Malls are emptying. The depressing stories just keep coming. Reading the Macy’s, Nordstrom, and Target earnings announcements is about as uplifting as a tour of an intensive care unit. The Internet is apparently taking down yet another industry. Brick and mortar stores seem to be going the way of the yellow pages. Sure enough, the Census Bureau just released data showing that online retail sales surged 15.2 percent between the first quarter of 2015 and the first quarter of 2016.

But before you dump all of your retail stocks, there are more facts you should consider. Looking only at that 15.2 percent “surge” would be misleading. It was an increase was on a small base of 6.9 percent. Even when a tiny number grows by a large percentage terms, it is often still tiny.

More than 20 years after the internet was opened to commerce, the Census Bureau tells us that brick and mortar sales accounted for 92.3 percent of retail sales in the first quarter of 2016. Their data show that only 0.8 percent of retail sales shifted from offline to online between the beginning of 2015 and 2016.

So, despite all the talk about drone deliveries to your doorstep, all the retail execs expressing angst over consumers going online, and even a Presidential candidate exclaiming that Amazon has a “huge antitrust problem,” the Census data suggest that physical retail is thriving. Of course, the shuttered stores, depressed execs, and tanking stocks suggest otherwise. What’s the real story?

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Reforming a corporate tax code that double taxes – Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

From Real Clear Markets

Senator Orrin Hatch, chairman of the Senate Finance Committee, is focusing on an important aspect of the agenda for corporate tax reform — — allowing U.S. corporations to receive a deduction for dividends paid to their shareholders. That deduction would eliminate double taxation of corporate profits distributed as dividends; instead, these profits would be taxed only to shareholders, not at both the shareholder and corporate levels.

Although Senator Hatch has not disclosed the details of his proposal, a corporate deduction for dividends paid has several advantages. But such a proposal would raise financial and political challenges that would have to be addressed.

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Shopping online probably won’t save you money — Alberto Cavallo

MIT Sloan Asst. Prof. Alberto Cavallo

MIT Sloan Assistant Professor Alberto Cavallo

From MarketWatch

If you’re a bargain hunter, it’s common to spend time researching prices before making purchases. After all, you wouldn’t want to buy a washing machine at your local Lowes store only to find a lower price offered on However, I found in a recent study that retailers’ offline and online prices are the same more than 70% of the time.

That’s good news for consumers, who don’t need to worry about price comparisons when deciding whether to use a retailer’s website or visit a local store. They can choose instead based on other factors like convenience and product availability.

This finding is important for economists too. Online prices are increasingly being used in measurement and research applications, including studies of pricing behaviors, price stickiness, international relative prices, and exchange-rate dynamics. Many national statistical offices are even considering the use of online data in official consumer price Indexes.

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