There’s a high chance that while you’re reading this, your smartphone is within a few inches of you. Maybe you’re even reading this on a smartphone! You’re not alone – the average American uses their phone for about five hours each day.
Rady School of Management professor Ayelet Gneezy and Ph.D. candidate Kristen Duke studied smartphone habits and how they can impact our health, drawing interesting conclusions on how usage affects levels of paranoia and “brain drain.” Their recent study found that the presence of a smartphone can be a profound distraction when completing tasks that require memory and attention, even when the smartphone was powered off. This was especially true for people who think of themselves as dependent on their smartphones.
The study measured the performance of undergraduates on tests of memory and attention while their smartphone was placed either on the desk next to them, in a pocket or purse, or in another room. The people who had their phones on their desk performed the worst on the tests, indicating that even when our smartphone are off, they’re still on our minds.
Research conducted by Michael Callen, Rady School of Management Assistant Professor of Economics and Strategic Management, is being used in Afghanistan to combat government corruption and ensure government workers receive payment for their work.
To combat lost wages and corruption, Callen and his fellow researchers conducted a pilot study using mobile salary payments (MSPs) to pay workers at the Ministry of Labor in Afghanistan. MSPs allow employees to receive their salaries directly via mobile money. Callen’s research is critical for the strengthening Afghan state institutions and guaranteeing service delivery, factors viewed as critical for creating peace and stability in the country.
The preliminary results of that study indicate that using MSPs to pay workers could save the government hundreds of thousands per month, reduce travel cost associated with getting paid and provide salaries in a timelier manner. Because of Callen’s research, the use of MSPs is being written into agreements for future aid and is driving international policy.
Callen’s research is especially important because the U.S. sends more money to Afghanistan than any other country, yet there is little accountability for how that money is spent. The Afghan government spends 59.5 percent of its annual $7.3 billion (in U.S. dollars) budget on salaries. The international community covers about $5 billion of the Afghan annual budget, with most of the remaining $2.3 billion coming from domestic revenue. It is estimated that 40 percent of this money is lost to corruption. This is especially problematic with the payment of government workers, such as police, military and administrators. These agencies often pay “ghost” workers – fake employees added to the payroll so that others can capture their salary.
Delays in payment, garnishments, and payments to ghost employees are common problems in paying government employees in Afghanistan. Many of these issues stem from the fact that most of the salary payments outside urban centers happen in cash as part of a “trusted agent” system. In this system, instead of paying employees directly, the governments make a transfer to a bursar, who is in charge of then distributing cash. The problems using existing trusted agent system are widely recognized, but transitioning all government workers to bank transfers is a challenge. Only four percent of Afghans use a bank account, however, 74 percent of Afghans have a mobile phone. This makes public employee payments in Afghanistan ideally suited for MSPs.
Callen’s research has proven that MSPs are effective for government workers in Afghanistan and the Afghan government is implementing a large reform to start paying all government salaries with mobile money. The goals of this wide-scale reform are to eliminate ghost workers, reduce salary leakage, improve the payment experience and create an inclusive digital payment system appropriate for Afghanistan. The reform has been approved by the President’s High Economic Council, and milestones in the reform are being added as conditions for future assistance from the U.S. and the World Bank. The hope of using MSPs for all Afghan public employees is that in addition to saving the money and fighting corruption, the ability for the government to more accurately deliver payment will strengthen the delivery of services and effectiveness of the Afghan state.
Rady School Faculty Research Fights Corruption in Afghanistan was last modified: December 14th, 2017 by Melinda Battenberg
Rady School of Management Professor Uri Gneezy was named a 2017 Highly Cited Researcher by Clarivate Analytics, the global leader in trusted insights and analytics that accelerate the pace of innovation. Gneezy — who is an expert professor in behavioral economics, field experiments and the use of incentives — received the prestigious honor by conducting research that ranks among the top one percent of most cited works in economics during its year of publication, earning the mark of exceptional impact.
Gneezy is the Epstein/Atkinson Endowed Chair in Management Leadership and Professor of Economics and Strategic Management at the Rady School. His research focuses on applying behavioral economics to real world applications. Gneezy’s research has been published in renowned journals, such as Science, Proceedings of the National Academy of sciences, the American economic Review, Quarterly Journal of economics and Econometrica.
Some of Gneezy’s research on the topic of incentives include charitable giving and consumer price models, gender differences in competitiveness, and workplace and organizational norms. His work has been featured in prominent publications, including Quartz, TIME, The Wall Street Journal and The New York Times.
In addition to Gneezy’s impressive publications portfolio, he penned a popular book titled “The Why Axis” in conjunction with John List which asks the question, “Can economics be passionate?” The book, which was a national and international bestseller, details ways passionate economics can play out in our day-to-day lives and how taking this approach can benefit society.
Before joining the Rady School, Gneezy was a faculty member at the University of Chicago, Technion and Haifa. Gneezy received his Ph.D. from the Center for Economic Research in Tilburg.
Rady School Professor Uri Gneezy Named “Highly Cited Researcher” was last modified: November 17th, 2017 by Hallie Jacobs
David A. Schkade, the Jerome Katzin Endowed Chair and a professor of economics and strategic management at the Rady School, was selected as the 2017 Battle Buddy Staff and Faculty Award. He was presented with the award on Monday, June 5th at the Military-Affiliated Graduation Celebration held at UC San Diego.
The Battle Buddy Staff and Faculty Award goes to one UC San Diego Staff or Faculty member who has dedicated time, effort, and passion to military affiliated students, and has demonstrated influential, outstanding, and long-lasting support for this unique population.
Chris Hamidzadeh (MBA ’17) nominated Schkade for the award given through the Student Veterans Resource Center at UC San Diego.
“On behalf of the veterans enrolled at the Rady School of Management, we want to acknowledge Dr. David Schkade for his unwavering commitment to serving the military community,” Hamidzadeh said at the event. For many, being part of his course was the highlight of our MBA program and as such, we are honored to recognize him with the 2017 Battle Buddy Staff and Faculty award.”
Hamidzadeh and fellow Rady veteran students acknowledged Schkade’s unwavering support and commitment to helping veteran students succeed.
“Professor Schkade, your dedication to helping veterans improve their lives has not gone unnoticed – thank you,” Hamidzadeh said.
About David Schkade
David Schkade specializes in the psychology of judgment and decision making, measuring subjective experience, and improving decision making.
The primary focus of Schkade’s research is on the psychology of judgment and decision making, and how decision making can be improved. His scholarly work includes over 60 published papers and two books, including his most recent, “Are Judges Political? An Empirical Analysis of the Federal Judiciary.”
He has studied a wide variety of issues, including the relationship between money and happiness, the design of information displays for decision making, how jurors make punitive damage decisions, the effect of ideology on the decisions of federal appellate judges, environmental resource valuation, valuation of health effects for cost-benefit analysis and why people choose to become organ donors.
Rady Professor Earns Veteran Focused Award was last modified: September 5th, 2017 by Rady School
Rady School of Management professor Wendy Liu recruited a team of Rady School students to help with a market research project aimed at understanding consumer behavior in mobile banking. The research was commissioned by Mitek Systems, a B2B company that provides the core mobile deposit technology to over 95% of all U.S. banks. Mitek sought to gain a deeper understanding of why consumers adopt or do not adopt mobile deposit, and how they interact with the technology. When Mitek looked to the Rady School for expertise and help, they found a connection with professor Wendy Liu, who specializes in consumer behavior research.
The researchers conducted an in-depth behavioral study for Mitek involving a “training experiment.” Specifically, the researchers conducted face-to-face training sessions with consumers to teach them how to install and use mobile deposit on their smartphone. Consumers were tracked over a five-month period, including before and after the training session.
“The key to the study is a training intervention we instituted in the middle of this five months period, so that we can learn about consumers’ behavior before and after our training intervention,” Liu said.
Rady School students Tyler Church, Keshav Prabhu, Kamini Patel, Somashubhra Bhattacharya, Luis Rodriguez-martin, Farrah Zhao and Celine Li participated in the research with Professor Wendy Liu. Prabhu was interested in getting involved with the study to apply the knowledge he learned in his Rady School coursework to real-world research.
“After taking Professor Liu’s consumer behavior course, I felt I would enjoy the opportunity to get a deeper understanding of how consumers make decisions,” said Keshav Prabhu (MBA ’17). “I also had found marketing courses to be the most interesting topics during the course of my MBA so decided to take additional electives in marketing.”
The MBA students involved with the study collected data from subjects by survey and interviews and analyzed the data the team generated. Once the data was collected and analyzed, students created a presentation and presented the findings and insights to the Mitek executive team, including the product manager for mobile deposit, the general manager for payments, and Mitek’s CMO.
Research insights
After working with about 70 consumers and giving them training sessions to use mobile banking, the team was able to identify some of the greatest impediments that discourage consumers from adopting mobile deposit, including inaccurate perceptions of security risk and usage cost. Further, the study showed that an in-person training session is highly effective in helping consumers overcome these concerns.
“This project for a banking client gave students an opportunity to practice market research in an important field with high stakes,” Liu said, “They gained experience in designing a study, collecting and analyzing in-depth behavioral data, and interpreting and presenting the insights from the study.”
While the study has not been published yet, the team believes their findings could be used for future studies and analyses.
“I believe Mitek can use our project as a basis for future study on mobile deposit use behavior,” Prabhu said. “Our data was not representative of the larger population; however it does provide a good starting point to direct Mitek in partnering with banks to run additional experiments in the field to gather more data.”
Prabhu believed participating in the study was extremely beneficial for both his academic and professional careers.
“I deepened my basic understanding of preparing surveys to ask the right questions and collect data, as well as analyzing that data within the context of a marketing problem,” Prabhu said. “As someone that’s worked as an engineer in electronics and manufacturing, I was able to gain practical experience that I can show potential future employers of my accomplishments in marketing and business.”
“Our study helped Mitek gain valuable deeper insights into why people adopt or do not adopt mobile deposit, and further, to what extent an in-person training session of the technology could be helpful,” Liu said. “Our study paradigm can also be adapted to help other technology sectors to understand technology adoption by consumers in general.”
About Wendy Liu
Wendy Liu specializes in consumer judgment and decision making, focusing on the cognitive and emotional basis of consumer choice, social interactions, and well-being. Her recent research topics include decision making under complexity, such as shortlist formation, decisions involving risk, self control decisions, the role of complex emotions, contextualized motivations and values, and consumer behavior in medical and health domains.
Liu’s research has been published in leading marketing and management journals such as the Journal of Consumer Research and Organizational Behavior and Human Decision Processes. Her work has also been featured in the national media, such as Businessweek and Time Magazine.
Liu received her Ph.D. in Marketing from the Stanford Graduate School of Business. She is currently an Associate Professor of Marketing at the UCSD Rady School of Management, and teaches Consumer Behavior to MBA students.
Research at Rady: Shifting Toward Mobile Banking was last modified: September 5th, 2017 by Hallie Jacobs
Entrepreneurship is the process and attendant risks, of designing, launching, leading and growing a startup business venture.
This is a formulaic and inclusive definition. In reality entrepreneurship is about creating value by thinking innovatively — either individually or in teams — to solve significant problems or unmet market needs. These individuals — the entrepreneurs — make this happen by applying science, technology or new business models to solve these unmet needs.
Not all entrepreneurs or inventors need to, or are motivated to, start companies. Consider Thomas A. Edison, an inventor and entrepreneur who followed the entrepreneurship road via Edison Electric Light Company, and Jonas Salk, an inventor and developer of the first successful polio vaccine who followed the research path.
In today’s world, entrepreneurship is more important than ever before. The Rady School of Management MBA program’s entrepreneurial focus is about providing students with the mindset, knowledge and skills that allow for success in “innovation driven enterprises” — be it a startup/emerging company, or an established large enterprise. In either case, the individual creates value and is rewarded by identifying and evaluating opportunities that others have overlooked.
Our signature three-course sequence, Lab to Market, is unique among all business schools. It is more than a single course or simulated exercise in entrepreneurship and entrepreneurial thinking. We teach you how to identify scalable new ideas that fill a market need and that add social and economic value — be it in a large established business, emerging company or a startup.
Lab to Market is a real time, action-learning experience, immersing you in a real market problem or unmet need, moving from the classroom into a real world environment to test your hypothesis. You will face resource constraints. This will help you hone your critical thinking, communication, effective problem solving and other key entrepreneurial skills. These are the competencies and entrepreneurial mindset necessary for success as an innovative, opportunity driven entrepreneurial leader and manager.
Ruben Claudio (MBA ’13), a Rady School and Lab to Market alum, is a firm believer in the power of Lab to Market. He currently works as an estimator and project sponsor at Coffman Specialities, Inc., a business enterprise specializing in the construction of large public and governmental projects.
“My experience in the Lab to Market program and my time at the Rady School spurred my on to move on from my previous employment, and aggressively pursue opportunity within my industry,” he said. “Also, where I’m at, I’ve been able to be intrapreneurial, in that I’ve been able to influence and innovate processes here. I could not have asked for anything more.”
At its core, Lab to Market is about teaching students how to:
Identify the emerging “opportunity space” in an industry sector
Generate and validate new ideas and innovations
Distinguish real viable opportunities from interesting ideas
Evolve ideas into scalable products and services
Evaluate business models that can and will translate opportunities into ventures
This does not always translate into starting a company upon graduation. It is about providing students with a mindset for thinking and acting that will empower them to succeed. It is about teaching students how to create value by applying the analytical frameworks and tools of their MBA education to various sectors.
About Del Foit
Del Foit is currently a lecturer for the Rady School’s Lab to Market course. He is also an entrepreneur and angel investor. He has served as the president and CEO of StructureSpec Biosciences; the COO of Sequenom, Inc; vice president North American Operations, Roche Diagnostics, Director Infectious Disease Business Unit, Ortho Clinical Diagnostics, a J&J company.
Entrepreneurial Focus: Creating Value with Your Rady School MBA was last modified: September 5th, 2017 by Del Foit
Television advertisements lead to spikes in internet searches for the brand advertised as well as competitors, according to a study by Rady School Associate Professor Kenneth Wilbur and colleagues, Linli Xiu from the University of Minnesota and Rex Du from the University of Houston.
“Marketers are slowly figuring out that what you say in TV affects what people do on Facebook, Google, Twitter and other digital platforms,” said Wilbur. “Historically, communication efforts have lived within separate silos. Today, some organizations are figuring out that these things need to be managed holistically.”
Researchers studied the relationship between television advertisements and internet search spikes in fantasy sports brands and pickup truck brands. In the fantasy sports brands study, researchers found that advertisement content and media factors explained an incremental 54 percent of the variation in post-ad search spikes.
In the pickup truck brands study, which analyzed brand search data from 500,000 minutes and audience data for 40,000 national television advertisements, 75 percent of the incremental search occurs in the two minutes following an advertisement.
Both studies showed that brand-focused ads produced larger search spikes than price-focused ads, and that less informative ads produced larger spikes than more informative ads. Spikes also varied based on the network on which the ad aired and the genre of programming.
Overall, the studies suggest that television advertisements with small audiences produce significant search spokes in the two minutes after the ad airs. As such, post-ad search spikes are important for marketers to consider in conjunction with other metrics.
“The field has shown great interest in the paper. I recently presented results at the Advertising Research Foundation annual conference, a Marketing Science Institute conference, Cornell and Berkeley. Next week I will give the talk at Emory and Google, and then at Kaiser Permanente in May. Google and Kaiser both are discussing the possibility of follow-up research,” said Wilbur.
How do TV Ads Influence Searches? was last modified: September 5th, 2017 by Aleena Karamally
For decades, insufficient physical activity has been identified as a leading cause of many non-communicable diseases, including strokes, diabetes, heart disease and some kinds of cancer. Still, according to objective measurement approximately 96 percent of adults 20 to 59 in the U.S. do not meet the guidelines of 150 minutes of moderate physical activity and 75 minutes of vigorous physical activity per week.
On Amir, associate professor of Marketing at the Rady School of Management, recently co-authored a paper, Physical Activity Counseling in Primary Care: Insights From Public Health and Behavioral Economics, which helps address this issue. The paper uses principles of behavioral economics to apply an existing method of advising, the 5A framework, to the integration of physical activity counseling into primary care as a preventative medicine measure.
The 5A Framework involves a five-step plan to addressing an insufficient amount of physical activity in a patient’s life. The five steps are assess current physical activity levels, advise on increasing activity levels in relation to patient’s lab reports, agree on a physical activity plan with attainable goals and specific information on frequency and intensity, assist in creating strategies to overcome impediments to meeting goals, and arrange follow-up visits and reminders.
Overall, the paper uses principles of behavioral economics to analyze the reasons for decisions to engage in physical activity. Using these principles, the paper suggests the most effective methods of physical activity counseling for primary care physicians. It also notes the necessity for future research in determining the efficacy of these strategies in a clinical setting.
Using Behavioral Economics to Get Fit was last modified: September 5th, 2017 by Aleena Karamally
On the surface, it may seem that baseball cards and stock market trends are completely unrelated – but a recent study by Rady School professor Joseph Engelberg along with Linh Le and Jared Williams from the University of Florida found that the market for baseball cards shares many of the same anomalies that have been documented in financial markets.
In a study of the value of approximately 38,000 baseball cards issued from 1948 to 1996, researchers found that the market for baseball cards featured momentum, price drift in the direction of previous performance and IPO underperformance, much like studies of the stock market.
The findings regarding momentum support the idea that momentum arises because information gradually diffuses across a market. Engelberg, Le and Williams correctly predicted that because of less sophistication in traders of baseball cards (who are mostly younger), momentum would be greater. The researchers concluded that holding outperforming cards for a three-month period generated a 5.6 percent monthly return, compared to the less than 1 percent earned by momentum strategies in the stock market.
Like stocks, price drift in baseball cards occurs in the direction of previous performance. Researchers found that cards that had previously performed well continued to perform better than cards that had previously performed more poorly.
A parallel for IPO underperformance can be seen in newly issued cards and those of rookies. Both Initial Public Offerings of stocks in the stock market and these new cards in the market for baseball cards tend to underperform for a sustained amount of time.
Engelberg, Le and Williams’ research is significant because it supports the idea that financial theories of momentum, price drift, and IPO performance can exist naturally in markets, which do not include factors like dynamic growth rates, dividends or mutual funds.
Stock Market Not So Different from Baseball Cards was last modified: September 5th, 2017 by Aleena Karamally
Colorectal cancer is the second leading cause of cancer death in the U.S. However, motivating individuals to be screened for colorectal cancer, especially those with financial barriers or a fear of screening methods, has proved challenging.
Principles of behavioral economics show that financial incentives can be used to alter behavior. As such, offering a small financial incentive to vulnerable populations has been suggested as a solution to insufficient colorectal cancer screening rates. Rady School Associate Professor Ayelet Gneezy recently conducted and published a study in which primary care patients were mailed colorectal test outreach, outreach plus a $5 incentive, or outreach plus a $10 incentive.
The necessary screening completion rates of the groups were 36.9 percent with a financial incentive, compared to 36.2 percent with no financial incentive. These results did not vary significantly based on age, sex, ethnicity, or neighborhood poverty rate. As a result, the study concludes that financial incentives in the amount of $5 or $10 do not have any significant effect on completion of colorectal cancer screening.
The study was conducted in Fort Worth, Texas on a sample of 10,000 uninsured individuals aged 50 to 64 who had visited their primary care physician at least once in the previous year. Individuals were randomly assigned to be in either the control group with no financial incentive, in the $5 compensation group, or in the $10 compensation group.
These findings are some of the first regarding small financial incentives and cancer screening. Although they cannot be applied to other types of cancer screening or larger financial incentives, the findings are important in understanding the applications of behavioral economics.
The Effectiveness of Financial Incentives in Promoting Cancer Screening was last modified: September 5th, 2017 by Aleena Karamally