Economics Insights @ CBS

Although established money managers operate in an environment which seems com- petitive, they also seem to be very profitable. The present value of the expected future profits from managing a collection of funds is equal to the value of the assets under management times the profit margin, assuming that the managed funds will remain in business forever, zero asset flow into and out of the funds, zero excess returns net of trading costs, fixed management fee proportional to the assets under management and a fixed profit margin for the management company.

Climate change, as a slow and gradual modification of average climate conditions, is a difficult phenomenon to detect and track accurately based on personal experience. Insufficient concern and trust also complicate the transfer of scientific descriptions of climate change and climate variability from scientists to the public, politicians, and policy makers, which is not a simple transmission of facts.

The current research examined the intersection of social categorization and identity recognition to investigate whether and when one form of construal would dominate people’s responses to social targets. Using an automatic priming paradigm and manipulating prime duration to examine how familiarity with social targets and the time course of processing moderate construal, we asked participants to judge the familiarity and sex of faces (Experiments 1 and 2, respectively).

Research suggests that living in and adapting to foreign cultures facilitates creativity. The current research investigated whether one aspect of the adaptation process — multicultural learning — is a critical component of increased creativity. Experiments 1-3 found that recalling a multicultural learning experience: (a) facilitates idea flexibility (e.g., the ability to solve problems in multiple ways), (b) increases awareness of underlying connections and associations, and (c) helps overcome functional fixedness.