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Archives for: February 2008


MSNBC.com, 2/1/2008
Bob Monroe: Google a tough company to catch
A marriage between Microsoft and Yahoo would still be hard-pressed to compete with Google, says Bob Monroe, Associate Teaching Professor, Information Technology and Computer Science. The verb “googling” has become synonymous with Internet searches, a fact that speaks to Google’s dominance.

Cincinnati Enquirer, 2/3/2008
US Airways merger still ‘a mess’
The recent merger between America West and US Airways is still a mess, and management is still trying to figure out all the problems, says Deputy Dean Ilker Baybars, Professor of Operations Management and Manufacturing. Many experts say integration has been troublesome because the combined airline must deal with labor and technical issues

The Nation, 2/3/2008
Nobel Prizewinner says peace, economy are intertwined
Governments should remove policy uncertainties whenever possible so the economy can perform more efficiently, says Finn Kydland, The Richard P. Simmons Distinguished Professorship; University Professor of Economics. Kydland says peace and economic development in the age of globalization are interconnected to a certain extent.

Marketplace (public radio), 2/5/2008
Using passengers as test market audience makes sense, says Boatwright
Using a captive audience of airline passengers to test a new product makes sense, according to Peter Boatwright, Associate Professor of Marketing. Kraft Foods will be trying out a new low-fat cream cheese on JetBlue passengers for the next month.

The Tartan, 2/5/2008
Washington Post acquisition makes sense, says professor
The acquisition by the Washington Post of an 8.1 percent stake in Corinthian Colleges is a logical move, according to Jeffrey Williams, Professor of Business Strategy. Williams notes that the move makes sense for a company that “manages information as it is moving into an industry where it can be used.”

Fortune, 2/6/2008
Higher inflation is ‘practically inevitable,’ says Meltzer
Much higher inflation is “practically inevitable,” says Allan Meltzer, The Allan H. Meltzer University Professor of Political Economy. Meltzer believes the real danger is in 2009 and 2010, when the Federal Reserve will be forced to raise rates to kill off inflation, possibly causing a recession.

New York Sun, 2/8/2008
Research shows universal school voucher programs make people happier
Universal school voucher programs that include religious schools make people happier than vouchers limited to nonsectarian institutions, according to research by Maria Marta Ferreyra, Assistant Professor of Economics. The research simulated two imaginary voucher programs in the Chicago area using an economic model.

Philippine Daily Inquirer, 2/10/2008
Kydland visits Philippines
Finn Kydland, The Richard P. Simmons Distinguished Professorship; University Professor of Economics, gave a public lecture to a packed audience in the Philippines. Kydland visited through a program called “Bridges – Dialogues Towards a Culture of Peace,” which brings Nobel Prize winners of various disciplines to countries in the developing world.

New York Times, 2/10/2008
Qatar student opts for business over medicine
Dana Hadan, a third-year business student at Carnegie Mellon’s Qatar campus, says she originally wanted to be a doctor, but her parents did not want her to attend medical school overseas. Instead, Hadan was able to earn a degree from an American university much closer to home, and she now describes herself as passionate about business.

Pittsburgh Post-Gazette, 2/14/2008
Academics drove basketball standout’s decision to play for Carnegie Mellon
Basketball standout Ryan Einwag, an undergraduate Business Administration major, says he chose Carnegie Mellon over several other schools that recruited him in part because of its strong academic reputation. Einwag’s coach says the player has earned “well over a 3.0” grade-point average at the Tepper School.

Idaho Statesman, 2/14/2008
Meltzer’s account of Great Inflation is ‘sobering’
Allan Meltzer’s detailed history of the Federal Reserve includes an account of the Great Inflation that observers call “sobering.” Meltzer, The Allan H. Meltzer University Professor of Political Economy, is now considered by some to be the dean of monetarism.

MarketWatch, 2/14/2008
Lave: Nations sometimes use oil holdings for political means
When private companies control oil, they put it on the market for the best price, but when nations control the resource, they sometimes use their sale for political ends, says Lester Lave, Harry B. and James H. Higgins Professor of Economics and University Professor, Director of Green Design; Co-Director, Electricity Industry Center. Lave forecasts a growing number of contract disputes such as the one between Exxon Mobil and Venezuela, noting that only 5 percent of the world’s estimated untapped oil and gas reserves are open to private companies.

Forbes.com, 2/15/2008
Meltzer: Deeper recession will come from lack of balance by Fed
Federal Reserve Chairman Ben Bernanke needs to focus on maintaining steady economic growth while also keeping inflation in check, says Allan Meltzer, The Allan H. Meltzer University Professor of Political Economy. Says Meltzer, "Focusing on one or the other will eventually lead the economy into deeper recession."

Chicago Tribune, 2/15/2008
No clear answers in vicious cycle of falling house prices, credit market fears
Tepper School alumnus and Chicago Fed president Charles Evans says it’s unclear what will break the vicious cycle of falling house prices and credit market fears. There is a sense in which the two problems are different, such as the two markets’ different time schedules, says Evans, who earned an MSIA in 1985 and a PhD in 1989.

Pittsburgh Business Times, 2/15/2008
Some family business owners looking for exits; private equity may pick up slack
Given Pittsburgh’s population and company demographics, some family business owners are getting to the point where they are looking for exits, says Arthur Boni, John R. Thorne Chair of Entrepreneurship; Associate Teaching Professor of Entrepreneurship; Director, Donald H. Jones Center for Entrepreneurship. Furthermore, Boni adds that private equity firms from different regions are looking for places to expand.

Montreal Gazette, 2/16/2008
Research: Unethical behavior happens when nobody notices
If people who worked for Enron, WorldCom, Parmalat and Tyco International had taken note of their colleagues’ unethical behavior, scandal would not have occurred at those companies. That’s the conclusion of research to which Francesca Gino, Visiting Assistant Professor in Organizational Behavior and Theory; Manager of the Center for Behavioral Decision Research and Don Moore, Carnegie Bosch Faculty Development Chair; Associate Professor of Organizational Behavior & Theory contributed.

Pittsburgh Post-Gazette, 2/17/2008
Thorne’s family asks for memorial donations to the Don Jones Center
In lieu of flowers, the family of the late Jack Thorne has asked that donations in his memory be sent to fund the Donald H. Jones Center for Entrepreneurship at the Tepper School. Thorne, who died while snorkeling in the Cayman Islands on Feb. 13, was the David T. and Lindsay J. Morgenthaler Emeritus Professor of Entrepreneurship.

ABC Radio (Australia), 2/18/2008
Goodfriend comments on fiscal stimulus package
Marvin Goodfriend, Professor of Economics; Chairman, The Gailliot Center for Public Policy, was interviewed on ABC Radio’s “Breakfast” program in Australia. The topic was an analysis of the fiscal stimulus package. URL for this interview (includes link to audio file): http://www.abc.net.au/rn/breakfast/stories/2009/2494179.htm

BusinessWeek, 2/19/2008
Lack of brand-building experience a liability for Chinese companies
Chinese companies have gotten very good at manufacturing products for export at a low cost, according to Baohong Sun, Associate Professor of Marketing. The problem, she says, is that as Chinese companies start to expand overseas, they are finding their lack of brand-building experience is a liability.

The American, 2/20/2008
Meltzer: More regulation not an answer to subprime mortgage crisis
Finding scapegoats in the subprime mortgage crisis and passing legislation may satisfy the public, but it won’t prevent a similar crisis in a few years, says Allan Meltzer, The Allan H. Meltzer University Professor of Political Economy. Meltzer says regulation creates incentives that can’t be foreseen.

Pittsburgh Business Times, 2/22/2008
Increase top line with announced price hikes, existing customers
To increase a company’s top line, announce a price hike effective at the end of the following quarter, which will result in a short-term sales boost, says Frank Demmler, Adjunct Professor of Entrepreneurship. Demmler also suggests focusing sales efforts on existing customers.

The Tartan, 2/25/2008
Thorne helped define standard curriculum for entrepreneurship
The late Jack Thorne, who was the David T. and Lindsay J. Morgenthaler Emeritus Professor of Entrepreneurship, helped to define the standard curriculum for entrepreneurship, says S. Thomas Emerson, the current holder of the Morgenthaler Chair. Thorne was the focus of an unprecedented outpouring of affection from alumni, according to Steve Sharratt, associate dean of advancement.

The Tartan, 2/25/2008
Tepper School student serves as MOSAIC committee chair
Now in its eight year, MOSAIC, Carnegie Mellon’s annual conference on gender issues, aims to bring together a range of academic disciplines in discussion of the common theme. Business Administration student Andrea Cinkovic serves as MOSAIC committee chair.

News Journal (Delaware), 2/26/2008
Lave: Little relief in sight for electricity customers in transmission-constrained areas
There is little financial relief on the horizon for electricity customers in a transmission-constrained area like the Delmarva Peninsula, says Lester Lave, Harry B. and James H. Higgins Professor of Economics and University Professor, Director of Green Design; Co-Director, Electricity Industry Center. Even planned new power lines are unlikely to solve the problem, he says; coal prices are “going through the roof,” while natural gas prices are “all over the map.”

Forbes.com, 2/26/2008
Bernanke should worry about inflation and unemployment, not repetition, Meltzer says
Ben Bernanke won’t necessarily hurt his reputation by repeating the same mantra every time he visits Capitol Hill, according to Allan Meltzer, The Allan H. Meltzer University Professor of Political Economy. Rather, Meltzer believes the Fed chairman should worry about the fact that he’s not talking about the need to watch both inflation and unemployment rates

Miami Herald, 2/27/2008
U.S. power infrastructure struggles when faced with multiple problems
An outage large enough to affect at least half a million homes happens about every four months, according to a 2004 report by Jay Apt, Executive Director, Electricity Industry Center; Associate Research Professor; Distinguished Service Professor in Engineering and Public Policy. Apt says the United States’ power infrastructure is designed to easily adjust to a single problem, but not multiple issues.

Time, 2/27/2008
Research: U.S. experiences far more power outages than Great Britain or Japan
According to research by the Electricity Industry Center, the average U.S. customer experiences 214 minutes of power outage each year, compared to 70 in Great Britain and just six in Japan. The research was written by three authors, among them Jay Apt, the EIC’s Executive Director, an Associate Research Professor, and Distinguished Service Professor in Engineering and Public Policy; and Lester Lave, Harry B. and James H. Higgins Professor of Economics, and University Professor, Director of Green Design, and EIC Co-Director.

Lodi News-Sentinel, 2/27/2008
MBA candidate writes book on concussion theory
Dr. Bennet Omalu, MBA FlexTime candidate for 2008, has written a new book detailing his theory about the lasting effects of repeated concussions. Titled “Play Hard Die Young,” the book took Omalu just two months to complete, even while working full-time and studying for his MBA.

Bloomberg, 2/27/2008
Bernanke acted appropriately, says Meltzer
Fed Chairman Ben Bernanke recognized that a central bank has two concerns: the financial problem and the macroeconomic problem, says Allan Meltzer, The Allan H. Meltzer University Professor of Political Economy. Bernanke acted appropriately and did “creative, intelligent things about the banking problem,” Meltzer says.

BusinessWeek, 2/28/2008
BusinessWeek ranks Tepper School’s undergrad program 22nd
The undergraduate business program at the Tepper School was ranked 22nd in the country by BusinessWeek magazine. The magazine reports that the number of high school seniors who say they intend to study business is increasing, and incoming freshmen in 2007 boast higher standardized test scores than the previous year.

Wall Street Journal, 2/28/2008
Fed forgetting lessons of the 1970s, says Meltzer
Recent actions by the Federal Reserve show the central bank is paying too much attention to political and market player and forgetting the problems of the 1970s, says Allan Meltzer, The Allan H. Meltzer University Professor of Political Economy. Meltzer says Fed officials in the 1970s and today keep promising to lower inflation, but forget those promises once unemployment rises.

New York Times, 2/28/2008
Meltzer: Fed ignoring inflation dangers
The Federal Reserve is “doing the same stupid things they did in the 1970s,” says Allan Meltzer, The Allan H. Meltzer University Professor of Political Economy. Meltzer says Fed officials always promised to tackle inflation once the economy started growing, “but they never did it.”

Miami Herald, 2/28/2008
Apt: Don’t rush to judgment in power outage investigation
It would be a mistake to rush to judgment as to what caused the problem that sparked a power outage for about one million customers in Florida, says Jay Apt, Executive Director, Electricity Industry Center; Associate Research Professor; Distinguished Service Professor in Engineering and Public Policy. Apt says all power generators are designed to go offline in the event of problems to protect equipment, and specialists need time to sort things out.

Pittsburgh Tribune-Review, 2/28/2008
Tepper School alumnus steps down from iGate to work on a new startup
Sunil Wadhwani, MSIA 1976 and co-founder of one of the Pittsburgh region's technology success stories, iGate Corp., is stepping down as chief executive officer, with an eye towards building another startup in the region. Wadhwani will be replaced April 1 at the information technology services and business process outsourcing company.

SSLGuru.org, 2/29/2008
Lave: U.S. should try to end dependence on foreign oil
U.S. policy should aim to stop its reliance on foreign oil, says Lester Lave, Harry B. and James H. Higgins Professor of Economics and University Professor, Director of Green Design; Co-Director, Electricity Industry Center. Instead of trying to make gasoline cheap, Lave urges enactment of a steep gas tax to boost national security, encourage purchase of fuel-efficient vehicles and provide economic stimulus.

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