Tag Archives: Uber

Updates from Chicago Booth

The real cost of discrimination: A case study from Nazi Germany
By Robin I. Mordfin -Policies such as the Trump administration’s ban on visitors from a string of majority-Muslim countries are likely to harm American companies, research suggests.

Chicago Booth’s Kilian Huber and University of Munich’s Volker Lindenthal and Fabian Waldinger draw their conclusion from a study of companies in Nazi Germany. Purging Jewish managers from German companies reduced the aggregate market valuation of all companies listed on the Berlin Stock Exchange by approximately 5 percent between 1933 and 1943, or nearly 2 percent of the German gross national product, they find.

The researchers collected data on 30,000 managerial positions at German companies that had been listed on the Berlin Stock Exchange in 1932, when Hitler was on the path to becoming the leader of the country. At the time, Jews held about 15 percent of senior management positions in these companies.

After the Nazis took power in 1933, those managers either left or were forced out of their positions. The share prices of these companies then declined relative to companies that had never employed Jewish executives. The share prices of companies that lost Jewish managers started falling in 1933 and remained persistently 10 percent lower than the share prices of peer companies that had never had Jews in senior positions. more>

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The secret to the Uber economy is wealth inequality

By Leo Mirani – There are only two requirements for an on-demand service economy to work, and neither is an iPhone.

First, the market being addressed needs to be big enough to scale—food, laundry, taxi rides. Without that, it’s just a concierge service for the rich rather than a disruptive paradigm shift, as a venture capitalist might say.

Second, and perhaps more importantly, there needs to be a large enough labor class willing to work at wages that customers consider affordable and that the middlemen consider worthwhile for their profit margins. more> http://tinyurl.com/mls5yl4

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Updates from CHICAGO BOOTH

Are we doomed?

By Austan Goolsbee – And now we come to find out that technology is replacing all of us, that there isn’t a single job in America or maybe even around the world that cannot be replaced by a computer. We have seen lawyerless wills, driverless cars, jobless manufacturing. They are even manufacturing a toilet seat in Japan that raises itself and lowers itself as you walk in.

What is left for us to do?

I gave a talk in Kalgoorlie, Australia. It’s 400 miles east of Perth and the home of the largest open-pit gold mine in the world, known as the “Super Pit.”

That’s the main tourist attraction there. And in the bottom of the super pit, there are giant trucks that have no drivers. They zoom back and forth with loads of rock that they dump in vats of arsenic, which pulls the gold out. more> http://goo.gl/mrJdir

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Why Uber must be stopped

By Andrew Leonard – What happens when a company with the DNA of Uber ends up winning it all?

What happens when the local taxi companies are destroyed and Lyft is crushed?

What happens when Uber’s priorities turn to generating cash rather than spending it?

What happens to labor — the Uber drivers — when they have no alternative but Uber?

What happens when it rains and the surge-pricing spikes and there’s nowhere else to go?

A company with the street-fighting ethos of Uber isn’t going to let drivers unionize, and it certainly isn’t going to pay them more than it is required to by the harsh laws of competition. It will also dump them entirely in a nanosecond when self-driving cars prove that they are cheaper and safer. more> http://tinyurl.com/oncmvk6