How Effective are Expert TV Hosts at Saving Failing Businesses?

16 Pages Posted: 20 Jan 2020

See all articles by Russell S. Sobel

Russell S. Sobel

The Citadel - School of Business

Reagan N. Sobel

College of Charleston

Douglas M. Walker

College of Charleston

Peter Calcagno

College of Charleston - Department of Economics

Date Written: January 2019

Abstract

The profit and loss system is an integral part of a dynamic market economy. Losses eliminate businesses that are inefficiently managed or whose products no longer provide sufficient value. Almost a dozen popular television shows feature entertaining expert hosts claiming to “save” failing businesses with injections of physical and human capital. We undertake the first comprehensive analysis of these shows, calculating the failure rates of the businesses and analyzing the incentive structure facing the shows, networks, hosts, and participants. In general, we find that these shows are largely unsuccessful in saving failing businesses.

JEL Classification: L26, L82

Suggested Citation

Sobel, Russell S. and Sobel, Reagan N. and Walker, Douglas M. and Calcagno, Peter, How Effective are Expert TV Hosts at Saving Failing Businesses? (January 2019). Contemporary Economic Policy, Vol. 37, Issue 1, pp. 9-24, 2019, Available at SSRN: https://ssrn.com/abstract=3293196 or http://dx.doi.org/10.1111/coep.12285

Russell S. Sobel (Contact Author)

The Citadel - School of Business ( email )

171 Moultrie St.
Charleston, SC 29409
United States

Reagan N. Sobel

College of Charleston ( email )

66 George Street
Charleston, SC 29424
United States

Douglas M. Walker

College of Charleston ( email )

66 George St.
Charleston, SC South Carolina 29424
United States

HOME PAGE: http://walkerd.people.cofc.edu

Peter Calcagno

College of Charleston - Department of Economics ( email )

66 George Street
Charleston, SC 29424
United States

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