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  • September–October 2021
  • Article

Frontiers: Can an AI Algorithm Mitigate Racial Economic Inequality? An Analysis in the Context of Airbnb

By: Shunyuan Zhang, Nitin Mehta, Param Singh and Kannan Srinivasan
We study the effect of Airbnb’s smart-pricing algorithm on the racial disparity in the daily revenue earned by Airbnb hosts. Our empirical strategy exploits Airbnb’s introduction of the algorithm and its voluntary adoption by hosts as a quasi-natural experiment. Among... View Details
Keywords: Smart Pricing; Pricing Algorithm; Machine Bias; Discrimination; Racial Disparity; Social Inequality; Airbnb Revenue; Revenue; Race; Equality and Inequality; Prejudice and Bias; Price; Mathematical Methods; Accommodations Industry
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Zhang, Shunyuan, Nitin Mehta, Param Singh, and Kannan Srinivasan. "Frontiers: Can an AI Algorithm Mitigate Racial Economic Inequality? An Analysis in the Context of Airbnb." Marketing Science 40, no. 5 (September–October 2021): 813–820.
  • 31 Oct 2022
  • Research & Ideas

Why the Largest Minority Group Faces the Most Hate—and How to Push Back

misery of being surrounded by an ever-increasing number of “competitors.” Therefore, they theorized, whites might become more inclusive toward smaller groups they deemed less threatening. “Changes in the... View Details
Keywords: by Pamela Reynolds
  • January 2014 (Revised October 2014)
  • Supplement

Mittal Steel's Pursuit of Arcelor (B)

By: Paul M. Healy and Penelope Rossano
Lakshmi Mittal, CEO of Mittal Steel, a UK-based company with Indian roots, took advantage of a weakened Arcelor that had successfully won a bidding war for Canadian steel company Dofasco, with an unsolicited bid to buy the company. Mittal's plans for acquiring Arcelor... View Details
Keywords: Strategy; Fiduciary Duty; Negotiation; Steel; India; Europe; Governance; Mergers; Board Decisions; White Knight; Valuation; Mergers and Acquisitions; Corporate Governance; Economics; Steel Industry; Canada; United Kingdom; India
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Related
Healy, Paul M., and Penelope Rossano. "Mittal Steel's Pursuit of Arcelor (B)." Harvard Business School Supplement 114-057, January 2014. (Revised October 2014.)
  • 28 Apr 2010
  • Research & Ideas

Earth Day Reflections

Weapon", was originally published on Harvard Business Review's faculty blog on April 19, 2010.) Spring brings April showers, May flowers—and a flurry of annual reports. Mine have been arriving in the... View Details
Keywords: by Staff
  • 26 Oct 2022
  • Research & Ideas

How Paid Promos Take the Shine Off YouTube Stars (and Tips for Better Influencer Marketing)

YouTube influencers amass followers by filming everything from popping pimples to reviewing lipstick, with businesses watching closely for marketing opportunities. But audience loyalty only goes so far. When YouTubers post too many paid... View Details
Keywords: by Kara Baskin; Technology; Media & Broadcasting
  • 21 Apr 2020
  • Working Paper Summaries

Changing In-group Boundaries: The Role of New Immigrant Waves in the US

Keywords: by Vasiliki Fouka, Shom Mazumder, and Marco Tabellini
  • 08 Aug 2023
  • Research & Ideas

Black Employees Not Only Earn Less, But Deal with Bad Bosses and Poor Conditions

rankings for these environmental factors with the racial makeup of various firms. When he did, Zhang found that Asian employees scored highest on work environment, followed by White and Hispanic employees,... View Details
Keywords: by Michael Blanding
  • 13 Feb 2012
  • Research & Ideas

The Case Against Racial Colorblindness

of getting around this fact." Several studies by Norton and his colleagues show that attempting to overcome prejudice by ignoring race is an ineffective strategy that—in many cases—only serves to perpetuate... View Details
Keywords: by Carmen Nobel
  • 27 Jun 2019
  • Research & Ideas

Rituals Strengthen Couples. Here’s Why They’re Good for Business, Too

Our daily lives are dictated by familiar routines that go something like this: Wake at 6 a.m., shower, go to work, prepare and eat dinner, tidy up the house, head to bed at 10 p.m. Then, set the alarm to repeat it all over again the next... View Details
Keywords: by Dina Gerdeman
  • 05 Dec 2016
  • Research & Ideas

How To Deceive Others With Truthful Statements (It's Called 'Paltering,' And It's Risky)

target’s beliefs by giving a false or distorted impression. But it’s not just businesspeople who palter. Donald Trump has done it. Hillary (and Bill) Clinton, too. Chances are you have paltered. “People seem to be using this strategy... View Details
Keywords: by Dina Gerdeman
  • 31 Oct 2018
  • What Do You Think?

What is the Function of Fear in Leadership?

leader’s role should involve reducing fear among associates to a minimum. Beatriz commented that, “quite often, team members paralyze due to fear and start delegating upward New KPIs, action plans, and strategies that don’t decipher the bad organizational habits and... View Details
Keywords: by James Heskett
  • 10 Feb 2022
  • Research & Ideas

Why Are Prices So High Right Now—and Will They Ever Return to Normal?

After a year and a half, most inventory hit by temporary stockouts returned to pre-pandemic levels and inflation waned, “suggesting a gradual return to normalcy,” the researchers write. Yet in some areas, shortages turned into permanent... View Details
Keywords: by Rachel Layne
  • 02 May 2023
  • What Do You Think?

How Should Artificial Intelligence Be Regulated—if at All?

assist, and score against an opponent with the help of AI and relentless 24-hour practice. Or when machines compose better memos, white papers, and poems than you could have written—by means of generative AI that recognizes patterns in... View Details
Keywords: by James Heskett; Information Technology; Technology
  • 13 Dec 2022
  • Research & Ideas

The Color of Private Equity: Quantifying the Bias Black Investors Face

they do it.” The color of money is mostly white The total share of assets managed by minority-owned firms in 2021 was 1.4 percent, according to Lerner, while minorities that year made up over 40 percent of... View Details
Keywords: by Pamela Reynolds; Financial Services
  • 26 Sep 2023
  • Research & Ideas

Unpacking That Icky Feeling of 'Shopping' for Diverse Job Candidates

When companies try to hire employees from specific ethnic or racial backgrounds to meet their diversity, equity, and inclusion goals, an uncomfortable feeling often creeps into the process. Particularly among well-intentioned white... View Details
Keywords: by Kristen Senz
  • 09 Dec 2002
  • Research & Ideas

Unilever—A Case Study

This article considers key issues relating to the organization and performance of large multinational firms in the post-Second World War period. Although foreign direct investment is defined by ownership and control, in practice the... View Details
Keywords: by Geoffrey Jones; Consumer Products; Entertainment & Recreation; Food & Beverage; Manufacturing; Retail
  • 01 Mar 2021
  • Research & Ideas

How Systemic Racism Can Threaten National Security

expect an equal contribution from your citizens, all citizens must be treated equally,” says Tabellini. “It reveals the costs for society as a whole if you don’t.” Despite the national reckoning in the United States after the killing of George Floyd View Details
Keywords: by Rachel Layne
  • 19 Sep 2018
  • Working Paper Summaries

From Immigrants to Americans: Race and Assimilation During the Great Migration

Keywords: by Vasiliki Fouka, Soumyajit Mazumder, and Marco Tabellini
  • 11 Apr 2024
  • In Practice

Why Progress on Immigration Might Soften Labor Pains

applicants hold a bachelor's degree or higher and there are minimum salaries that must be met for positions. Visas are requested by the employer for a specific individual. Microsoft, for example, is the lead actor when it makes an H-1B... View Details
Keywords: by Rachel Layne
  • 30 May 2024
  • Research & Ideas

Racial Bias Might Be Infecting Patient Portals. Can AI Help?

to an inquiry? Researchers analyzed more than 57,000 message threads between patients and physician teams at Boston Medical Center and found that white patients were more likely to receive answers from their attending physicians, while... View Details
Keywords: by Ben Rand; Health
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