In The News

Wharton’s John Paul MacDuffie and David Zaring join the Knowledge@Wharton broadcast to discuss Volkswagen’s ongoing emissions cheating scandal. Both MacDuffie and Zaring indicate that the cause of the ongoing situation is company greed.

Could algorithms collude on prices? Wharton Professor Joseph Harrington argues that it is difficult to determine based on the limited technical knowledge of algorithms. He also suggests that “algorithms will need to be tested in more advanced and complex environments” to see their impacts on pricing.

Kartik Hosanagar discusses Senator Elizabeth Warren’s plan to regulate giant tech companies. Warren proposes that companies will not be able to use their platforms to market their products and services. Hosanagar proposes that to regulate big tech companies, one must address consumer protection and “platform-oriented organizations”.

Professor Lisa Servon provides an insightful meditation on the human issues that stand behind a recent push for Philadelphia to ban cashless stores. She juxtaposes her own financial stability with her customers from RiteCheck to show how a reliance on cash is a symptom of a larger system of economic disenfranchisement faced by many Americans. 

Wharton Professor Herbert Hovenkamp discusses Elizabeth Warren’s proposal, which intends to break up Big Tech firms. Hovenkamp argues that Warren’s proposal fails to distinguish between “..who is being harmed and who is benefiting. Furthermore, he suggests that her plan may “…raise consumer prices and consumer variety”.

Penn Law Professor Cary Coglianese explains Trump’s claim of curtailing the number of business regulations than any other president. Coglianese argues that Trump’s claim can be beneficial for both himself and Democrats.

Wharton Professor Joao Gomes joins the Knowledge@Wharton broadcast to discuss the United States’s national debt and offers some potential solutions to combat the issue. A potential idea he suggests is decreasing services provided by the government. One question he poses is”Is it more likely that we will strike some balance where we have to compromise and say these promises [on Social Security and Medicare] are just way too generous?”

John Paul MacDuffie and David Zaring join the Knowledge@Wharton broadcast to discuss Volkswagen’s “Dieselgate”, where the auto manufacturer had altered the environmental dependence in over 500,000 automobiles. Both MacDuffie and Zaring imply that greed is what lead Volkswagen to deceive consumers and investors.

Itay Goldstein discusses where in the financial technology space is the most opportunity located. He argues that not only is fintech going to overhaul the traditional finance industry, but that there are also tons of activities occurring outside of the traditional finance sector. Therefore, he suggests it is crucial to critically analyze new technologies and their impacts on global society.

Wharton Professor Kartik Hosanagar analyzes the potential risks of algorithms that are being used for artificial intelligence. He advocates for “an algorithmic bill of right”, which argues for personal liberties and responsibilities of using algorithms. Without “an algorithmic bill of right”, Hosanagar implies that the use of algorithms will have negative consequences on how one lives.

Susan M. Wachter offers her perspective regarding the drastic rise of home prices in North American urban centers. Although home prices will eventually settle down, she indicates that their spike in relation to income remains a growing concern for the Millennial generation

Wharton Professor Mark V. Pauly offers his perspective of accountable care organizations, which are controlled by the Stark Law. The legislation prevents physicians from referring patients to places where they have an economic incentive. Pauly argues that people should have a choice if they decide on choosing an ACO.

According to a new study conducted by Penn Medicine researchers, Medicare patients that receive home care have higher rates of hospital admission than those who receive care in a nursing home. Professor Rachel M. Werner discusses the tradeoffs between home care and nursing facilities. She argues”…While home health care may cost less, it doesn’t have the same intensity of care as a skilled nursing facility, which may be sending many of them back into the hospital.”

One of the issues that the Democrats are looking to use in the upcoming 2020 election are “antitrust laws”. Wharton and Penn Law Professor Herbert Hovenkamp offers a historical perspective to “antitrust laws”. He argues that it “hasn’t been such an intense focus of a presidential campaign since the 1912 election with Woodrow Wilson, William Taft, and Theodore Roosevelt”.

In this Op-ed article, Wharton Professor Mark V. Pauly discusses his perspective of U.S. Senator Kamala Harris’s “Medicare for All” proposal. He argues that it could lead to complications with medical visits and that “benefits…and their policies vary across states”. Furthermore, he implies that one must be realistic in their expectation of healthcare delivery.

Wharton Professor Kevin Werbach discusses the Trump campaign’s proposal for a wholesale 5G network. Part of the proposal is that “No company could use exclusive control over spectrum to block competition”. Although against the Trump administration, Werbach argues that “…Democrats should welcome [the Republican’s] open access vision.”

Wharton Professor Minyuan Zhao offers her perspective about why China and the United States have not come to a trade agreement. She argues that one avenue that is worth consideration is “both [countries having] a mutual interest in protecting IP rights. Apart from protecting IP rights, she suggests that “U.S.-China negotiations are not just about trade, but also have longer-term implications on the “development models” China adopts”.

 

Wharton Professor Ashley Swanson joins the Knowledge@Wharton podcast to discuss government efforts to curb rising prices for prescription drugs. She argues that there are negative impacts to leaving drug prices to the markets, such as charging monopolistic prices. To amend the problem, Swanson also indicates that the government must enact stronger policies. One solution that she recommends is re-analyzing the “cross-subsidization” model of pharmaceutical companies.

In light of the economic and political turmoil facing Venezuela, Wharton Professor Philip M. Nichols provides a three point non-violent alternative to help the country begin its recovery: Establishing equity, Restimulating vital markets, Erecting legal institutions for asset claims. 

Regarding the use of artificial intelligence to address the gap in cybersecurity skills, Wharton professor Pinar Yildirim argues that “automation can negatively impact team dynamics and actually lead to less efficiency.”

Original source here: http://knowledge.wharton.upenn.edu/article/automation-make-teams-less-efficient-less-cooperative/

Appearing on the Knowledge@Wharton podcast, Arthur van Benthem discusses, “Flawed Analyses of U.S. Auto Fuel Economy Standards ,” a new study he co-authored, which challenges the argument made by the current administration that the costs of the fuel efficiency targets made by the Obama administration outweigh the benefits. Additionally, van Benthem discusses the more relaxed fuel efficiency rates imposed by the Trump administration. He suggests that with higher efficiency standards, “[t]here are environmental benefits. Not just greenhouse gases, but also air pollution. By relaxing the standards, we’re throwing away all those benefits.”

Wharton Professor Kevin Werbach implies that regulation is not the main concern with blockchain systems. Instead, he argues that the it is the lack of trust. He indicates that “People will use blockchain systems if they trust them, which is the only way the technology will see mass-market adoption.”

Is Universal Basic Income(UBI) an effective strategy for combating higher living costs and helping people integrate back into the workforce? One place where this idea was tested was in Finland. Penn economics professor Ioana E. Marinescu discovered that the results from the Finland experiment were similar to  “People living on Native American reservations…who received stipends from casino profits…[which] report[ed] lower levels of stress and depression.”

In a discussion on critical infrastructure, Professor Eric Celmens highlights the need for intelligent regulation of major information platforms such as Google, Apple, and the like in order to preserve consumer rights and economic prosperity. 

How should Howard Schultz handle running for president, while still owning shares in Starbucks? Wharton Professor Philip M. Nichols argues “…he[must] avoid the conflict between what is good for this country and what is good for Starbucks….he needs to commit to selling all his shares in the company”.

To prevent a wider trade dispute with China, US investors are hoping that a trade deal will be made. Associate Professor of Management at the Wharton School Minyuan Zhao argues “When cross-border transaction becomes more costly, or risky, companies may decide to engage in more local production, hence higher investments in the host countries…, but[it] may not indicate optimism towards the US-China relationship.”