Columbia Business School

The real estate industry recently underwent a historic shift that will fundamentally change how agents are compensated to help people buy and sell homes.

As a result of the new rules around real-estate commissions, “house prices will increase, and our typical estimate is about 4% to 5%,” Tomasz Piskorski, the Edward S. Gordon Professor of Real Estate and co-author of a recent research paper related to the subject, told Marketwatch. Learn more:

Would lower agent commissions lead to higher home prices? Economists are split. Changes in real-estate commissions are set to have a profound impact on the U.S. housing market.

Olivier Toubia, the Glaubinger Professor of Business, told Tech Crunch that one nuance to consider when choosing a domain name is how often customers want to interact with your business. Learn more:

Maybe Friend wasn't crazy for spending $1.8M on a domain after all | TechCrunch Marketing experts say that a strong name, domain and brand can make a big difference for startups and can be worth paying for — sometimes.

“Everything that you do as a leader is symbolic,” says Willie Pietersen, CBS professor of professional practice at Columbia Business School and author of the soon-to-be-released book Leadership—The Inside Story.

Seemingly small actions, such as walking into the office with a smile and a “spring in your step,” he says, can affect a team’s mood. Learn more:

How leaders unintentionally self-sabotage through nonverbal communication Be mindful of how you express yourself when silent.

Congratulations to Michael Morris, the Chavkin-Chang Professor of Leadership at CBS, on being included in the Financial Times and Schroders Business Book of the Year 2024 longlist. Professor Morris's book, Tribal, is out now:

FT and Schroders Business Book of the Year 2024 — the longlist Tales of Trump’s finances, AI advances and Amazon’s dominance join the chosen titles

David Weinstein, director of the Center on Japanese Economy and Business, will moderate a discussion featuring Professor Haruhiko Kuroda, Former Governor of the Bank of Japan, during an event called "Japan's Economic Outlook and Normalization of Monetary Policy" on September 26. Click here for details and tickets:

www.ticketleap.events

Consumers are stretching their wallets to cover increased rent, food costs, and higher borrowing rates, leading to less available disposable income for discretionary spending, according to Professor of Professional Practice Brett House. This consumer behavior means higher purchasing rates of 'knock-off' products. Learn more:

Designer 'dupes' go mainstream as shoppers choose affordability over luxury. 'It just makes more financial sense,' expert says More shoppers are buying dupes on TikTok Shop and other ecommerce platforms as a way to participate in a trend without breaking the bank.

to orientation last week. Congratulations to Columbia Business School's newest cohort of MBA, EMBA, MS, and PhD candidates. Everyone here at CBS is excited to take this journey with you!

Tech giant NVIDIA reported today 122% revenue growth, thanks in part to surging demand for its cutting-edge chip technology.

NVIDIA CEO Jensen Huang recently visited the Columbia Business School campus in Manhattanville to speak to students about the nature of building a company and why many tech companies are often at risk of going out of business. Check it out now:

NVIDIA CEO Jensen Huang Explains the Hard Truth of Building Companies NVIDIA CEO Jensen Huang shares why many tech companies are often at risk of going out of business.

Recent CBS research reveals how rising interest rates and commercial real estate distress threaten the US banking sector, especially for regional banks. Learn more: https://business.columbia.edu/research-brief/hidden-risks-bank-failures

Research from Kent Daniel, the Jean-Marie Eveillard and First Eagle Investment Management Professor of Business, and others shows that when the short-selling community as a whole faces obstacles, stocks trade at unfairly high prices on average. Find out why:

20 stocks the bears can’t easily short — which is why you shouldn’t buy them Companies that short-sellers struggle to bet against — like Super Micro Computer — are likely overvalued.

New research by the Roy Bernard Kester and T.W. Byrnes Professor of Accounting and Auditing, Shiva Rajgopal, and his co-authors uses historical company data to help investors more accurately estimate a company's value, promoting greater transparency. Learn more: https://business.columbia.edu/research-brief/valuing-intangible-capital-trillion-dollar-tech-giants

New research from CBS Professor Mohamed Hussein finds that political advertisers are spending big bucks on so-called 'meddle ads' — but consumers aren't always buying it. Learn more about this little-known issue below: https://leading.business.columbia.edu/business-society/marketing/political-ads-backfire

Workers who have to keep organizational secrets report feelings of isolation and stress, but at the same time, they also find more meaning in their work. Find out how:

The Secret Behind Workplace Well-being | CBS Insights Workers who have to keep organizational secrets report feelings of isolation and stress, but at the same time, they also find more meaning in their work.

Congratulations to current EMBA student Nathan Patrick Garlock on his profile in Poets & Quants as part of 2024's Best and Brightest Executive MBAs collection. Read more about Nathan's journey to CBS below:

2024 Best & Brightest Executive MBA: Nathan Patrick Garlock, Columbia Business School Nathan Patrick Garlock, a graduate of the Columbia Business School, has been named a Poets&Quants Best & Brightest Executive MBA of 2024

In this episode of Columbia Bizcast, listen to General Motors CEO Mary Barra’s keynote appearance at the Tamer Institute’s 2024 Climate Business & Investment Conference, where she shared the automaker’s bold strategy to lead the electric vehicle revolution. https://leading.business.columbia.edu/climate-change-sustainability/digital-future/bizcast-mary-barra-gm-evs

A new study from the Arthur J. Samberg Professor of Business and Vice Dean for Research, Oded Netzer, and his co-researchers examines how different types of images inspire distinct consumer responses. Learn more: https://business.columbia.edu/research-brief/brand-selfies-marketing

ICYMI: Columbia Business School alum, author, and former CEO of 7-Eleven and Blockbuster, James Keyes '80, is giving away a $10,000 scholarship to 10 lucky winners from anywhere around the world.

To be eligible, you can read Mr. Keyes' book and share a video expressing why you believe education equates to freedom. The rules and a complimentary abridged version of the book, 'Education is Freedom,' can be found here: www.educationisfreedombook.com. The deadline to apply is September 30. Don’t miss your chance!

The Fall 2024 pro-bono consulting program is now open for applications, and the deadline is Friday, September 6, at 11:59 pm EST. The program is free of charge and begins after the client kick-off date in late September. To learn more, click here: https://www.columbiasbcp.com/

To apply: https://docs.google.com/forms/d/e/1FAIpQLSe0ZHPidNgZqdnMQWNoPP541pXckjq3nUODbjTbmguLBCIysA/viewform

A new report by Columbia Business School’s Center on Global Brand Leadership explores the common challenges to innovation across industries, particularly in agriculture, construction, and transportation, and offers strategies to help companies overcome these barriers: https://leading.business.columbia.edu/entrepreneurship-innovation/growth-strategies-lynchpin-industries

CBS Professor Laura Veldkamp told CNBC that relying too heavily on certificates of deposit (CDs) isn't a good idea because cashing out a CD early usually entails a penalty. “If there’s any chance you might need it, buyer beware,” she explains. Read more:

An interest rate cut is coming. Here's what to do with your money beforehand. Don’t let stock market turmoil and a slowing economy scramble your planning as borrowing costs get set to fall, financial experts say.

CBS Professor Gita Johar explores the critical role of publishers, platforms, and people in the evolving ecosystem of AI and discusses strategies for combating false content in this research article. Learn more: https://leading.business.columbia.edu/digital-future/ai-misinformation-challenges-solutions

Highlighted in Newsweek, a recent study from Columbia Business School measured the macroeconomic toll that unhappiness takes on the U.S. and found that mental illness costs the economy approximately $282 billion annually. Read the Newsweek article here: https://www.newsweek.com/map-shows-happiest-us-states-1927660

And read the study here:https://boazabramson.github.io/assets/macro_mental.pdf

Map shows happiest US states The map highlights a notable variation in the levels of joy among Americans across different regions.

CBS Professor Bruno Pellegrino created a new methodology to estimate the cost of regulation to GDP and found substantial variance across European economies. Learn more: https://business.columbia.edu/research-brief/research-brief/red-tape-regulation-gdp

A new Columbia Business School study shows how Starbucks entering a neighborhood without an existing coffee shop boosts by up to 11.8 percent. Read more: https://business.columbia.edu/research-brief/research-brief/starbucks-startups-third-places

Fortune reports that Americans seem to have lost their appetite for Big Macs and fries as McDonald’s reported its first sales drop in nearly four years, citing inflation-weary customers pulling back from fast food.

However, there’s a missing part of this equation that hasn’t widely been taken into account, argues CBS Professor Stephen Zagor. He believes the election will also play a key role. Find out why:

Columbia professor says McDonald’s can blame its sales woes on an election-stoked vibecession The election is making people think the economy is worse than it really is.

Economists have long insisted that the only way to cut emissions of carbon dioxide and other greenhouse gases rapidly and at scale is to put a price on them.

While that is true, the key to a successful, politically sustainable climate policy is to ensure that the benefits precede the costs, argues Monika Schnitzer, economist and chair of comparative economic research at the Ludwig Maximilian University of Munich, and CBS Professor Gernot Wagner. Read more: https://leading.business.columbia.edu/climate-change-sustainability/climate-policy-carrots-sticks

This latest movement can be seen simply as part of a broader pattern of consumer spending that dates back 50 years, Professor Brett House told The New York Times. Read more:

Tired of Influencers, TikTok Users Try ‘Underconsumption Core’ to Cut Costs The trend of “underconsumption core” romanticizes buying and using only what you need. Yes, being normal is now trending. Experts say it’s a response to a period of economic hardship.

Professor Olivier Toubia told Inc. that he believes the steps below more closely resemble a plan to make human workers obsolete than a roadmap to artificial general intelligence. Find out why:

5 Steps That OpenAI Thinks Will Lead to Artificial Intelligence Running a Company The stages reportedly start with chatbots and end with an AI that's capable of doing the work of an entire organization.