We hope you enjoy the latest installment of the MIT Sloan Experts Podcast series!
The third in our series of MIT Sloan Experts podcasts features Chris Knittel, professor of applied economics at MIT Sloan, talking about his latest research on racial bias in the ride-sharing industry.
Knittel’s research focuses on how Uber and Lyft are failing black passengers and what to do about it. Listen to this brief podcast and find out how Knittel came to his conclusions, what his findings say about drivers who cancel on customers with names that generally indicate they are a person of color, and what takeaways Uber and Lyft can garner from these findings to improve.
During a half-hour interval on May 6, 2010, stock prices for some of the largest companies in the world dropped precipitously, some to just pennies a share. Then, just as suddenly and inexplicably, shares recovered to their pre-crash prices.
This unprecedented event, burned into the memories of investors and regulators alike, is now known as the Flash Crash. Since that day, financial markets have seen flash crashes in US Treasury securities, foreign currencies, and exchange-traded funds (ETFs). Other puzzling, system-wide glitches are becoming more frequent as well.
Without a doubt, our financial systems are complex and often unpredictable, and when they swing out of control they remind us how much we still have to learn about how they work and how inadequate our traditional methods of controlling them are.
It is widely understood that China needs to move from an investment-intensive growth model to one based on science, technology and innovation. But before I take up this subject, let me take a detour to tell a tale of two countries.
Both countries are small. One has a population of 5.5 million people; the other has a population of 8 million. In both countries, the dominant ethnic group is about 75 per cent of the population and minority groups make up the rest.
Both countries are rich. One country has a per capita gross domestic product of US$52,000 and the other country has a per capita GDP of US$35,000.
Both countries have faced existential security threats from the outside and armies in both countries have mandatory conscriptions. One country was actually kicked out and evicted by its now much larger neighbour, because the union would have threatened the political dominance of the main ethnic group. The second country is located in a region surrounded by hostile nations.
Naturally, the phenomenon has drawn much commentary about what this means for marketing, but I am more interested in what it teaches us about making money.
It’s not easy to make money in an ecosystem from unrelated parties. In spite of all the press purporting that Pokémon Go offers local businesses unique marketing opportunities, there are, in fact, many limitations. The claim is that small businesses can gain new customers from being a Pokémon “Gym” or “Pokéstop” — physical locations that players visit to collect rewards or battle virtual monsters.
Now that President Trump’s pick for Secretary of Labor, CKE Restaurants CEO Andy Puzder, has withdrawn his nomination for U.S. Secretary of Labor, America will avoid, at least for the moment, a highly divisive debate over the future of U.S. employment and labor policy. This gives President Trump an opportunity to reconsider the type of person he wants to carry out his agenda.
Will Trump choose someone who respects the mission of the Labor Department, which is: “To foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.”
Or, will he choose another candidate who will implement an agenda that weakens employment standards and enforcement; thwart efforts of women and men who are organizing to support low-wage workers, and deepen the divide between business and labor? If this is the direction of whoever gets confirmed Secretary of Labor, we will be revisiting last century’s labor battles and further divide the nation. Read More »