1984 research outputs found
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Bundling and Scheduling Service Packages with Customer Behavior: Model and Heuristic
No full textPast researchers have found evidence that customers consider the sequence of event utility when evaluating past and future service experiences. Specifically, the evidence confirms that the placement of a peak event, the utility of the last event, and the slope of event utility over time all affect customer behavior and perception. We formulate an optimization problem with a focus on optimizing schedule sequence characteristics in order to maximize customer experiences. We discuss possible contexts in which this type of scheduling might be considered and, as an example, present a particularly complex model of a world‐renowned performing arts venue. We solve the problem with a simulated annealing algorithm and further discuss the complexity and opportunities associated with this type of scheduling effort
Looking Under the Hood: The Catalysts of Hotel Credit Spreads
No full textThe interest-rate spread (or credit spread) between hotel loans and office building loans is an effective predictor of the relative change in delinquency for hotel loans, as explained in a prior report, “A New Canary for Hotel Mortgage Market Distress” (published by the CHR). In this companion report, we take a look under the loan spread hood to see what are the catalysts that drive that credit spread (which is also known as the relative risk premium or risk premium differential). Using a Vector Autoregression (VAR) statistical framework, we find that hotel credit spreads (against office loans) widen if the general economy worsens, anticipated corporate profitability declines, capital availability decreases, hotel revenues decrease, or relative risk increases. The variables that are statistically significant capture risk and return information embedded in the risk premium differential (credit spread), and it is the decline in these factors that makes our canary stop singing (as a warning of impending trouble with hotel loans)
Macroeconomic Risk Factors and the Role of Mispriced Credit in the Returns from International Real Estate Securities
Get PDFThe benefits of diversification from international real estate securities are generally well established. However, the drivers of international real estate securities returns are insufficiently understood. We jointly examine the empirical implications of three major international asset pricing models that account for broad macroeconomic risk factors. In addition, we develop the hypothesis that an indicator of mispriced credit is significant in explaining the time series variation in international real estate securities returns. We employ the returns generated by a large sample of firms from 20 countries over the period 1999 to 2011 to test our hypothesis. We find support for the predictions of the major international asset pricing models. We also find evidence in favour of our hypothesised link between local credit conditions and the performance of international real estate securities
Institutional Ownership and Return Predictability Across Economically Unrelated Stocks
Get PDFWe document strong weekly lead-lag return predictability across stocks from different industries with no customer-supplier linkages (economically unrelated stocks). Between 1980 and 2010, the industry-neutral long-short hedge portfolio earns an average of over 19 basis points per week. This return predictability arises exclusively from pairs of stocks in which there are common institutional owners. This predictability is a new phenomenon which does not originate from the slow information diffusion underlying previously documented lead-lag effects, weekly reversals, momentum, nonsynchronous trading, or other known factors. Our findings suggest that institutional portfolio reallocations can induce return predictability among otherwise unrelated stocks
Baker Program Alumnus Profile: Elysia Tse (Baker \u2701)
No full textThis year marks the inaugural year of the Baker Program in Real Estate Alumnus Award. The Baker Program in Real Estate, in conjunction with the Cornell Real Estate Review (CRER), will bestow the award yearly to the Baker alumnus who has displayed leadership, growth, commitment to the Program, and community activism since graduating
Trading in the Presence of Short-Lived Private Information: Evidence from Analyst Recommendation Changes
Get PDFWe study how short-lived private information affects trading strategies and liquidity provision. Our empirical identification rests on information acquisition before analyst recommendations are publically announced. Consistent with theory, institutional investors who are likely to possess short-lived private information on average “buy the rumor and sell the news,” buying before analyst upgrades and selling when upgrades are announced. When we go beyond existing theory, we find that different classes of informed institutions differ in their profit-taking patterns, reflecting variations in their trading horizons and motives. The returns to holding private information are economically large. Individuals, who are unlikely to be informed early, buy on upgrade announcements but not before. Institutions that are not attentive to firm-specific news appear to suffer from a winner’s curse, emerging as de-facto liquidity providers to better-informed institutions. Placebo tests confirm that these trading patterns are unique to situations in which some investors have a short-lived informational advantage
When Private Property Rights Collide With Growth Management Legislation
Get PDFOver the past century, ever-expanding urban and suburban growth in the United States has offered a clear sign of America’s economic vitality, but it has not come without unique challenges of its own. Indeed, efforts to promulgate “smart growth” legislation as an antidote to suburban “sprawl” have proliferated in the past three decades, but it is time we ask ourselves whether their benefits outweigh their unintended consequences. States and local governments that once enthusiastically touted such legislation are beginning to confront unforeseen obstacles – and litigation – that raise the need for immediate reform. This Article explores the impact of growth management acts on preexisting property rights, noting the inevitable and growing conflicts between the two sides that legislatures (and courts) are increasingly being forced to confront. We assess the problems with creating truly intelligent urban and suburban growth, from political pressures to inconsistent judicial determinations to NIMBYs to constitutional takings jurisprudence
An Analysis of Smart Tourism System Satisfaction Scores: The Role of Priced Versus Average Quality
No full textThe availability of customer reviews from smart tourism systems provides an interesting research opportunity to investigate the role of consumer’s perceived quality relative to a reference group on online satisfaction scores. This paper shows a positive relationship between the satisfaction score and the difference between the consumers’ perceived quality and the reference group’s quality level. The findings support comparison-level theory coupled with the product-based norm as a comparison standard, which posits that consumers use the average quality of the product’s reference group as the relevant comparison standard. Furthermore, consumers are found to be more sensitive to negative deviations from the reference group’s quality than from positive deviations, which is consistent with prospect theory
Changing World of the Commercial Real Estate Job Search Space
Get PDFSuccessfully leveraging social media is now an essential part of any commercial real estate job seeker’s strategy. A recent study conducted by Reppler1, a social media consultancy, found that 91% of employers are now using social media to screen prospective applicants. Cornell University’s Baker Program in Real Estate and SelectLeaders have closely monitored changing trends in the real estate search space. Marc Torrey, Director of Global Sales at SelectLeaders, states that, “Where we see social media playing the biggest role in recruiting is on the screening end of the process. If I were looking for a job today I would assume that a recruiter was going to do a search and check on my online presence, what I consider to be someone’s online personal brand. Taking the time to make sure that your online personal brand conveys who you are and represents your best self should be a vital step in any job seekers process.”2 The resume may still be the single most important piece of an applicant’s arsenal in the recruiting process, but social media is beginning to render resumes obsolete. Phil Greenberg, Associate Director of Real Estate Career Services at Cornell University’s School of Hotel Administration, observes, “Now, there are dedicated boards such as SelectLeaders, which are very industry specific. The number of job postings and boards has proliferated extensively, and the ability to connect with people who have commonalities has similarly increased.”3 David Pollard of Monster.com states, “The next batch of workers to enter the workforce will shine on social media. Ultimately, it’s where they’ll pick up a tip for their next job. And so, talent management has to revamp its thinking toward one in which the resume is a piece (albeit an important one) of the puzzle.”