"Court Save the Queen:" The European Court of Justice Quashes Another Deeply-Rooted Common Law Remedy in Transnational Parallel Litigation


Transnational Dispute Management

2009, n°1

Departments: Tax & Law, GREGHEC (CNRS)

In the decision rendered on February 10, 2009 in Allianz S.p.A., Assicurazioni Generali S.p.A. v. West Tankers Inc. (Case C-185/07) ("West Tankers"), the European Court of Justice ("ECJ") quashed another procedural remedy which is typical of common law countries only and deeply rooted in such countries' history: the anti-suit injunction. Under such remedy, the court issues an order, directed to one of the parties to the proceedings pending before it, not to begin or continue another proceedings before a foreign court. The lack of performing the order results in heavy sanctions ...

'Harmonious' Norms for Global Marketing the Chinese Way


Journal of Business Ethics

October 2009, vol. 88, pp.411-432

Departments: Tax & Law

Whereas the concept of 'socialist rule of law' punctuated political discourse in the late 1990s, the idea of a 'socialist harmonious society' is today casting a strange light on Chinese legal reform. Is there a Confucian vision of China's marketing law and practice? To what extent have China's norms for marketing, mainly intellectual property and advertising law, been challenged by the new government policy toward a harmonious society? In the post World Trade Organization accession period, the theoretical framework of the 'socialist harmonious society' has turned law into a disciplinary principle given over to society's moral construction. If law is seen as an instrument for legitimizing power, it remains implicitly bound primarily to ensure the regime's durability. Although more and more ordinary citizens and foreign companies are seizing hold of normative tools being put at their disposal, this does not necessarily mean that Chinese law is implemented in a uniform and timely manner throughout China's territory. China still suffers from a lack of coherence and political will in the drafting of a legal reform that aims mainly at preserving the current fragile political balance. Contradictory forces are indeed at work in this legal construction that is torn between liberal leanings and socialist authoritarianism. Without a deep change in perspective, one can expect only relatively slow progress in protecting the intellectual property rights of the many Chinese and foreign goods and services that can be found on the Chinese market.

A Dual-Process Model of Interactivity Effects


Journal of Advertising

Summer 2009, vol. 38, n°2, pp.53-68

Departments: Marketing, GREGHEC (CNRS)

Although interactivity is often considered to have a positive influence on persuasion, research on interactivity effects is actually very mixed. This paper argues that under certain circumstances, interactivity may either enhance or inhibit persuasion. A dual-process model of interactivity effects is proposed and tested that posits differential effects of interactivity on persuasion depending on person and situation factors. Results of an experiment that manipulated level of Web site interactivity and task involvement, and measured user ability (Internet usage experience), show that under low-involvement conditions, the mere presence of interactivity served as a peripheral cue that led to more positive attitudes regardless of ability (experience). Under high-involvement conditions, however, interactivity elicited more positive attitudes for experienced users but less positive attitudes for inexperienced users. Implications for the use of interactivity in advertising and promotions are discussed

A Dynamic Model of the Limit Order Book


Review of Financial Studies

November 2009, vol. 22, n°11, pp.4601-4641

Departments: Finance, GREGHEC (CNRS)

pas sous affiliation hecThis paper presents a model of an order-driven market where fully strategic, symmetrically informed liquidity traders dynamically choose between limit and market orders, trading off execution price and waiting costs. In equilibrium, the bid and ask prices depend only on the numbers of buy and sell orders in the book. The model has a number of empirical predictions: (i) higher trading activity and higher trading competition cause smaller spreads and lower price impact; (ii) market orders lead to a temporary price impact larger than the permanent price impact, therefore to price overshooting; (iii) buy and sell orders can cluster away from the bid-ask spread, generating a hump-shaped order book; (iv) bid and ask prices display a comovement effect: after, e.g., a sell market order moves the bid price down, the ask price also falls, by a smaller amount, so the bid-ask spread widens; (v) when the order book is full, traders may submit quick, or fleeting, limit orders.

A General Stochastic Volatility Model for the Pricing of Interest Rate Derivatives


Review of Financial Studies

2009, vol. 22, n°5, pp.2007-2057

Departments: Finance

We develop a tractable and flexible stochastic volatility multifactor model of the term structure of interest rates. It features unspanned stochastic volatility factors, correlation between innovations to forward rates and their volatilities, quasi-analytical prices of zerocoupon bond options, and dynamics of the forward rate curve, under both the actual and risk-neutral measures, in terms of a finite-dimensional affine state vector. The model has a very good fit to an extensive panel dataset of interest rates, swaptions, and caps. In particular, the model matches the implied cap skews and the dynamics of implied volatilities