Chicago Booth Review Podcast

Abigail Sussman, a social psychologist at Chicago Booth, dives into her intriguing research on consumer financial behaviors, particularly co-holding savings and credit-card debt. She reveals that 20% of cardholders simultaneously carry debt while saving, a puzzling behavior that often reflects deliberate choices for financial security. The conversation explores mental accounting, where people separate payment methods, and highlights surprising preferences in spending. Sussman also discusses potential bank strategies to encourage smarter financial habits.

Scott Meadow, a clinical professor and venture-capital expert, shares insights on breaking into the venture capital industry. He discusses the challenges of landing a first job, emphasizing the importance of relevant experience. Scott suggests gaining sector expertise in operations rather than jumping straight into VC after an MBA. He outlines a strategy for targeting firms and portfolio companies and highlights the value of working with serial entrepreneurs. Additionally, he encourages reaching out to CEOs with valuable research to build connections.

The stereotypical good negotiator is tough, assertive and dominant. When we think of those traits, we may well think of certain stereotypical kind of people who we think fit with that—and who doesn't fit. So how do people respond differently depending on who they think they're negotiating with? Chicago Booth's Erika Kirgios tells us about her research on stereotypes and negotiation in the used-car market.

In this engaging discussion, Joe Pagliari, a scholar of real estate finance at Chicago Booth, dives into the intriguing world of alternative investments. He scrutinizes the shift of US pension funds toward private equity, questioning whether these strategies will yield the expected returns. Joe reveals the dangers of valuation opacity, the underperformance of non-core funds, and the impact of excessive risk-taking. With sharp insights into fees and the allure of leverage, he offers actionable recommendations for institutions to effectively navigate this complex landscape.

Ram Shivakumar, a Chicago Booth professor specializing in competitive strategy, dives into the distinctive approach of Trader Joe's in the fierce supermarket landscape. He emphasizes the importance of pursuing meaningful uniqueness over simply being the best. By examining Trader Joe's small stores and tailored operations, he illustrates how distinct business models can thrive. The discussion also touches on the relevance of game theory in strategy and the role of generative AI in enhancing strategic thinking. Key insights include adaptability, planning, and the pitfalls of survivorship bias.

Brian Jabarian, an economist from the University of Chicago, explores AI detection tools and their implications. He discusses the crucial role of these tools in preserving trust in education and consumer reviews. Jabarian reveals that non-experts struggle to differentiate between AI and human writing. He highlights the most effective detectors, especially Pangram, and warns about the evolving battle between AI and detection technologies. Policy suggestions include varying detection thresholds for classrooms and social media to ensure transparency and accountability in AI usage.

New York, LA, Chicago, Boston and other big US cities have traditionally been a good bet for real-estate investors. But that view is changing. Chicago Booth's Joe Pagliari explains why those traditional markets are riskier investments, and why more and more real-estate investors are looking at cities such as Atlanta, Dallas, Denver and Houston.

For the 30 years leading up to the COVID pandemic, productivity in US restaurants was essentially flat. Since the pandemic, restaurant productivity has soared—because of the rise of take-out and delivery. Chicago Booth's Chad Syverson about his research into the restaurant productivity boom. How has take-out and delivery transformed the economics of the food industry?

In this engaging discussion, economist Rebecca Dizon Ross, an expert in social safety nets, delves into her fascinating research about parental investments in the education of disabled children. She addresses the common belief that welfare disincentivizes work and explores how information can reshape parents’ perceptions about social benefits. Surprisingly, while her findings shift beliefs, they don't lead to increased educational spending. Rebecca also highlights how nonfinancial motives and constraints play significant roles in these decisions.

Mike Gibbs, a faculty member at Chicago Booth, explores the impact of CEOs on organizational success through extensive economic research. He discusses methods used to measure leadership's effect on performance, including surprising stock market reactions to CEO exits. Gibbs distinguishes between leader and manager CEOs, arguing that the former thrive in innovative firms. He highlights the rarity of effective leadership styles, the essential role of trustworthy bosses, and how top managers can significantly boost employee productivity.