Research Paper Series

  • Title
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Departments: Tax & Law, GREGHEC (CNRS)

European legal teaching - historically formalistic, doctrinal, hierarchical, and passive - is coming under increasing pressure to re-imagine itself as pragmatic, policy-aware, and action-oriented. Out of this context, a bottom-up movement of university law clinics appears to be emerging in Europe. Although intellectually indebted to the US model, the European variant reflects legal education and practice in Europe, specifically the multi-layered and multi-genetic legal landscape resulting from the Europeanization and internationalization of national legal systems, the globalization of European legal markets, and the growing demand for civic engagement in view of increasingly powerful supra-national institutions. Through the prism of clinical legal education, Reinventing Legal Education is the first attempt to gather scholarly and systematic reflections on the developments taking place in European legal teaching and practice. This groundbreaking book should be read by anyone interested in how clinical legal education is reinventing legal education in Europe.

Keywords: Legal Education, Law Reform, Participation, Civic empowerment, Coalitions, Legitimacy, Accountability, Civil society, European Union, Good governance


Departments: Marketing, GREGHEC (CNRS)

When people experience threats to important aspects of their self-concept (e.g., power, intelligence, sociability), they often compensate by consuming products that symbolize success, mastery, or competence on the threatened self-domain (within-domain compensatory consumption). Our research examines whether such compensatory consumption is effective in repairing the self-concept. Across seven experiments, we show that whether compensatory consumption is effective depends on the extent to which the connection between the compensatory products and the threatened domains is made explicit. When the connections are made explicit (e.g., through product names and marketing slogans), self-repair is impeded, but when the connections are only implicit (product is inherently symbolic of self-threat domain), self-repair can be successful. We further show that these differential effects of product connection explicitness are mediated by rumination: explicit connections induce rumination about the self-threat, which undermines self-repair, whereas implicit connections cause no rumination, facilitating self-repair. Our research provides a reconciliation of conflicting findings on self-repair in previous research, and also shows that despite the differences in efficacy, consumers compensate regardless of whether product connections are implicit or explicit, which has implications for consumer well-being.

Keywords: Self-concept; compensatory consumption; materialism; self-threat; self-discrepancy


Departments: Marketing, GREGHEC (CNRS)

What causes adolescents to develop consumer' ethical beliefs? Prior research has largely focused on the negative influence of peers and negative patterns of parent-child interactions to explain risky and unethical consumer behaviors. We take a different perspective by focusing on the positive support of parents and peers in adolescent social development. An integrative model is developed that links parental and peer support with adolescents' self-worth motives, their materialistic tendencies, and their consumer ethical beliefs. In a study of 984 adolescents, we demonstrate support for a sequential mediation model in which peer and parental support is positively related to adolescents' self-esteem and feelings of power, which are each associated with decreased materialism as a means of compensating for low self-worth. This reduced materialism is, in turn, associated with more ethical consumer beliefs.


Departments: Tax & Law, GREGHEC (CNRS)

This article examines the judgment of the Italian Supreme Court (Corte di Cassazione) no 11696 of 14 May 2018 concerning the legal status of mixed same-sex married couples under Italian law. It explores the problems relating to the recognition and the civil status registration in Italy of couples of the same sex where one spouse is a foreigner and the other is Italian. Legge 20 May 2016 no 76 (registered partnerships law) and decreto legislativo 19 January 2017 no 7 established a regime under which Italian couples who married abroad are recognised and registered, hence downgraded, as civil partners, whereas foreign couples are recognised and registered as married. They say nothing, however, on mixed couples. During the parliamentary debate, however, the government affirmed that their main concern was to avoid Italians to circumvent the registered partnerships law by marrying abroad and then obtaining the recognition of their marriage in Italy. Based on this intent, the Supreme Court found that mixed couples are subject to the same antielusive logic – a construction that this article criticises under several viewpoints.


Departments: Economics & Decision Sciences, GREGHEC (CNRS)

In this article, we investigate strategic information transmission over a noisy channel. This problem has been widely investigated in Economics, when the communication channel is perfect. Unlike in Information Theory, both encoder and decoder have distinct objectives and choose their encoding and decoding strategies accordingly. This approach radically differs from the conventional Communication paradigm, which assumes transmitters are of two types: either they have a common goal, or they act as opponent, e.g. jammer, eavesdropper. We formulate a point-to-point source-channel coding problem with state information, in which the encoder and the decoder choose their respective encoding and decoding strategies in order to maximize their long-run utility functions. This strategic coding problem is at the interplay between Wyner-Ziv’s scenario and the Bayesian persuasion game of Kamenica-Gentzkow. We characterize a single-letter solution and we relate it to the previous results by using the concavification method. This confirms the benefit of sending encoded data bits even if the decoding process is not supervised, e.g. when the decoder is an autonomous device. Our solution has two interesting features: it might be optimal not to use all channel resources; the informational content impacts the encoding process, since utility functions capture preferences on source symbols.


Departments: Tax & Law, GREGHEC (CNRS)

The EU’s political system has never caught up with the impact European integration has had on citizens’ daily lives. EU citizens still vote in the European Parliament elections on different dates, according to different electoral laws, and in support of candidates selected by national parties and on the basis of domestic agendas. Yet this is set to change. With less than a year to go before the European Parliament elections, the EU political landscape is about to undergo a deep and historical shake-up. While populists are poised to disrupt the Parliament, a new wave of little-noticed transnational parties is emerging from the bottom-up. They both threaten established, mainstream political parties that have historically hold a monopoly of the European ‘project’. This paper traces their genesis, evolution and raison d'être before identifying their major features and political prospect.

Keywords: Elections, Parties, Europe, trasnational parties, European Parliament, Spitzenkandidated, Trasnational list


Departments: Finance, GREGHEC (CNRS)

We propose a new model of interdealer trading. Dealers trade together to reduce their inventory holding costs. Core dealers share these costs efficiently and provide liquidity to peripheral dealers, who have heterogeneous access to core dealers. We derive predictions about the effects of peripheral dealers’ connectedness to core dealers and the allocation of aggregate inventories between core and peripheral dealers on the distribution of interdealer prices, the efficiency of interdealer trades, and trading costs for the dealers’ clients. For instance, the dispersion of interdealer prices is higher when fewer peripheral dealers are connected to core dealers or when their aggregate inventory is higher.

Keywords: OTC markets, Interdealer trading, Inventory management.


Departments: Finance, GREGHEC (CNRS)

We show that banker bonuses cannot be understood exclusively as incentive contracts, but also incorporate a significant risk sharing dimension between bank shareholders and bank employees. This contrasts with the conventional view whereby diversified shareholders fully insure risk averse employees. However, financial frictions imply that shareholder value is concave in a bank's cash reserves---making shareholders effectively risk averse. The optimal contract between shareholders and employees then involves some degree of risk sharing. Using extensive payroll data on 1.26 million bank employee years in the Austrian, German, and Swiss banking sectors, we show that the structure of bonus pay within and across banks is compatible with an economically significant risk sharing motive, but difficult to rationalize based on incentive theories of bonus pay only.

Keywords: Bank compensation, risk sharing, bank risk, operating leverage


Departments: Marketing, GREGHEC (CNRS)

An important challenge for many firms is to identify the life transitions of its customers, such as job searching, being pregnant, or purchasing a home. Inferring such transitions, which are generally unobserved to the firm, can offer the firm opportunities to be more relevant to its customers. In this paper, we demonstrate how a social network platform can leverage its longitudinal user data to identify which of its users are likely job seekers. Identifying job seekers is at the heart of the business model of professional social network platforms. Our proposed approach builds on the hidden Markov model (HMM) framework to recover the latent state of job search from noisy signals obtained from social network activity data. Specifically, our modeling approach combines cross-sectional survey responses to a job seeking status question with longitudinal user activity data. Thus, in some time periods, and for some users, we observe the “true” job seeking status. We fuse the observed state information into the HMM likelihood, resulting in a partially HMM. We demonstrate that the proposed model can not only predict which users are likely to be job seeking at any point in time, but also what activities on the platform are associated with job search, and how long the users have been job seeking. Furthermore, we find that targeting job seekers based on our proposed approach can lead to a 42% increase in profits of a targeting campaign relative to the approach that was used at the time of the data collection.

Keywords: Hidden Markov Models, Data Fusion, Targeting, Customer Analytics


Departments: Strategy & Business Policy, GREGHEC (CNRS)

To investigate time compression dis-economies (TCD), this study estimated time-cost elasticities using 459 oil and gas global investment projects (1997-2010). Results show that the average cost of accelerating investments is negative: a firm could cut $6.3 million in costs of a single project by accumulating asset stocks one month faster. About 88 percent of the projects exhibit negative time-cost elasticities with over 39 percent of unrealized economies of time compression. Only 12 percent of the projects are subject to TCD. These time inefficiencies or frictions do not negate the existence of TCD, but suggest they are less prevalent than assumed in the literature. Management experience, R&D investment, firm size, economic development and political stability are shown to be associated with greater time compression efficiency.

Keywords: Sustainable Competitive Advantage, Temporal Frictions, Time Compression Diseconomies, Time Inefficiencies, Time-Cost Tradeoff


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