Columbia Business School Research

In this paper we show how simple text mining and semantic network analysis may be used to (i) improve our theoretical understanding of idea generation, (ii) help people improve the creativity of their ideas. From a theoretical perspective, we contribute to the cognitive idea generation literature by establishing a link between the set of concepts used to form an idea and the creativity of the idea. Each idea contains a subset of the semantic network of concepts related to the topic.

We study an international law firm that changed its compensation plan for team leaders to address a multitasking problem: team leaders were focusing their effort on billable hours and not spending sufficient time on "leadership" activities to build the firm. Compensation was changed to provide greater incentives for the leadership activities and weaker incentives for billable hours. The effect of this change on the task allocation of the firm's team leaders is large and robust; team leaders increase their non-billable hours and shift billable hours to team members.

This article links the visual perception of faces and social behavior. We argue that the ways in which people visually encode others' faces — a rapid-fire perceptual categorization — can result in either humanizing or dehumanizing modes of perception. Our model suggests that these perceptual pathways channel subsequent social inferences and behavior. We focus on the construct of perceptual dehumanization, which involves a shift from configural to featural processing of human faces and, in turn, enables the infliction of harm, such as harsh punishments.

We demonstrate a novel link between relationship-specific investments and risk in a setting where division managers operate under moral hazard and collaborate on joint projects. Specific investments increase efficiency at the margin. This expands the scale of operations and thereby adds to the compensation risk borne by the managers. Accounting for this investment/risk link overturns key findings from prior incomplete contracting studies.

This article develops a model of optimal government debt maturity in which the government cannot issue state-contingent bonds and cannot commit to fiscal policy. If the government can perfectly commit, it fully insulates the economy against government spending shocks by purchasing short-term assets and issuing long-term debt. These positions are quantitatively very large relative to GDP and do not need to be actively managed by the government. Our main result is that these conclusions are not robust to the introduction of lack of commitment.

Today’s media landscape affords people access to richer information than ever before, with many individuals opting to consume content through social channels rather than traditional news sources. Although people frequent social platforms for a variety of reasons, we understand little about the consequences of encountering new information in these contexts, particularly with respect to how content is scrutinized.

In many industries, product design and manufacturing lead times are sufficiently long that both the quality level of a product and the amount of inventory produced must be determined before a firm knows what the actual demand will be. In this paper, we conduct a theoretical analysis of such a setting. We first consider a centralized channel and characterize the optimal decisions by establishing relationships that must hold between the elasticity of cost of quality and the elasticity of revenue and show that quality and inventory are strategic substitutes.

People are exposed to persuasive communication across many different contexts: Governments, companies, and political parties use persuasive appeals to encourage people to eat healthier, purchase a particular product, or vote for a specific candidate. Laboratory studies show that such persuasive appeals are more effective in influencing behavior when they are tailored to individuals' unique psychological characteristics. However, the investigation of large-scale psychological persuasion in the real world has been hindered by the questionnaire-based nature of psychological assessment.

In order for a patient to be discharged from a hospital unit, a physician must first perform a physical examination and review the pertinent medical information to determine that the patient is stable enough to be transferred to a lower level of care or be discharged home. Requiring an inspection of a patient's "readiness for discharge" introduces an interesting dynamic where patients may occupy a bed longer than medically necessary.

This article investigates the cost and feasibility of reducing U.S. greenhouse gas emissions by 80 percent from 2005 levels by 2050. The United States has stated in its Paris Conference of the Parties (COP) 21 submission that this is its aspiration. I suggest that this goal can be reached at a net cost in the range of $37 to $135 billion/year. I assume that the goal is to be reached by extensive use of solar photovoltaic and wind energy (66 percent of generating capacity), in which case the cost of energy storage will play a key role in the overall cost.

Human personality traits differ across geographical regions. However, it remains unclear what generates these geographical personality differences. Because humans constantly experience and react to ambient temperature, we propose that temperature is a crucial environmental factor that is associated with individuals' habitual behavioural patterns and, therefore, with fundamental dimensions of personality.

Patents have long been assumed to provide firms with competitive advantage, but longitudinal results suggest that some types of patent content provide more enduring advantage than others do. The duration of advantage appeared to wane with time in the highly-dynamic U.S. communications-services industry during a period when technological changes occurred rapidly within it (1998–2012).

We examine the mirror image of sustained competitive advantage, namely, sustainable competitive disadvantage. We begin by reviewing the theoretical and empirical literature on sustained competitive advantage. Our review suggests it's not just firms in superior positions that sustain their performance, but also firms in the remainder of the performance spectrum, including those occupying positions around and below the norm.

We find important differences in dollar-based and dollar-neutral G10 carry trades. Dollar-neutral trades have positive average returns, are highly negatively skewed, are correlated with risk factors, and exhibit considerable downside risk. In contrast, a diversified dollar-carry portfolio has a higher average excess return, a higher Sharpe ratio, minimal skewness, is unconditionally uncorrelated with standard risk-factors, and exhibits no downside risk.

Consumer goods and services have psychological value that can equal or exceed their functional value. A burgeoning literature demonstrates that one source of value emerges from the capacity for products to serve as a psychological salve that reduces various forms of distress across numerous domains. This review systematically organizes and integrates the literature on the use of consumer behavior as a means to regulate self-discrepancies, or the incongruities between how one currently perceives oneself and how one desires to view oneself (Higgins, 1987).

Because of the unprecedented pace of globalization, foreign experiences are increasingly common and valued. Past research has focused on the benefits of foreign experiences, including enhanced creativity and reduced intergroup bias. In contrast, the present work uncovers a potential dark side of foreign experiences: increased immoral behavior. We propose that broad foreign experiences (i.e., experiences in multiple foreign countries) foster not only cognitive flexibility but also moral flexibility.

While it is generally believed that insulating cost allocations help managers focus their attention on their own actions and shield them from the actions of others, non-insulating schemes can have appeal by encouraging teamwork and/or mutual monitoring among divisions. In this paper, we demonstrate that non-insulating allocations can induce fruitful cooperation among parties even when teamwork and mutual monitoring are nonissues.

This paper aims to identify and discuss four major sources of power in negotiations: alternatives, information, status and social capital. Each of these sources of power can enhance a negotiator's likelihood of obtaining their ideal outcome because power allows negotiators to be more confident and proactive, and it shields them from the bargaining tactics of their opponents.

Contracts are commonly used to regulate a wide range of interactions and relationships. Yet relying on contracts as a mechanism of control often comes at a cost to motivation. Integrating theoretical perspectives from psychology, economics, and organizational theory, we explore this control-motivation dilemma inherent in contracts and present the Contract-Autonomy-Motivation-Performance-Structure (CAMPS) model, which highlights the synergistic benefits of combining structure and autonomy.

Women's underperformance in MBA programs has been the subject of recent debate and policy interventions, despite a lack of rigorous evidence documenting when and why it occurs. The current studies document a performance gap, specifying its contours and contributing factors. Two behaviors by female students that may factor into the gap are public conformity and private internalization.

Shopping is sometimes a source of stress, leading to avoidance coping behavior by consumers. Prior research suggests that store-induced stress makes shopping an adverse experience and thus negatively affects consumers' purchase likelihood. We propose that consumers' response to shopping stress depends on their motivational orientation. The greater the in-store stress, the more likely task-oriented consumers are to abandon the trip without making purchases. However, recreation-oriented consumers will be, up to a point, less likely to end the trip.

Background and objectives research suggests that altering situation-specific evaluations of stress as challenging versus threatening can improve responses to stress. The aim of the current study was to explore whether cognitive, physiological and affective stress responses can be altered independent of situation-specific evaluations by changing individuals mindsets about the nature of stress in general. Using a design, we experimentally manipulated stress mindset using multi-media film clips orienting participants to either the enhancing or debilitating nature of stress.

Rationale

Hospitals are increasingly using critical care outreach teams (CCOTs) to respond to patients deteriorating outside intensive care units (ICUs). CCOT staffing is variable across hospitals and optimal team composition is unknown.

Objectives

To assess whether adding a critical care medicine trained physician assistant (CCM-PA) to a critical care outreach team (CCOT) impacts clinical and process outcomes.

Methods

This research considers how marketers can encourage or 'nudge' consumers to transmit word of mouth (WOM), such as referrals or recommendations to friends, in a manner that helps reach, inform, or influence large numbers of consumers quickly, which is an outcome referred to as faster diffusion. Building on studies showing diffusion is faster when higher-connectivity people are involved; the authors propose a mechanism based on network externalities that encourages regular customers to select receivers who have higher levels of social connectivity.

We introduce a tractable dynamic monitoring technology into a continuous-time moral hazard problem and study the optimal long-term contract between principal and agent. Monitoring adds value by allowing the principal to reduce the intensity of performance-based incentives, reducing the likelihood of costly termination. We present a novel characterization of optimal dynamic incentive provision when performance-based incentives may decline continuously to zero. Termination happens in equilibrium only if its costs are relatively low.

We provide a comprehensive analysis of the impact of economic and financial globalization on asset return comovements over the past 35 years. Our globalization indicators draw a distinction between de jure openness that results from changes in the regulatory environment and de facto or realized openness, as well as between capital market restrictions across different asset classes. Although globalization has trended positively for most of our sample, the global financial crisis and its aftermath have provided new headwinds.

We present a novel theory of the employment relationship. A manager can invest in attention technology to recognize good worker performance. The technology may break and is costly to replace. We show that as time passes without recognition, the worker's belief about the manager's technology worsens and his effort declines. The manager responds by investing, but this investment is insufficient to stop the decline in effort and eventually becomes decreasing. The relationship, therefore, continues deteriorating, and a return to high performance becomes increasingly unlikely.

While prior research has suggested that network-based hiring in the form of referrals can lead to better career outcomes, few studies have tested whether such career advantages differ across demographic groups. Using archival data from a single organization for nearly 16,000 employees over an 11-year period, the authors examine the effect of hiring by referrals on the number of promotions employees receive and the differences in this effect across demographic groups.