Nobel Prize in Economics: What Impact on Research and Society?
The 2020 Nobel Prize in Economics recognized Paul Milgrom and Robert Wilson of Stanford University for their research on auctions. In this interview, Jean-Edouard Colliard, Associate Professor of Finance at HEC Paris and author of "Les Prix Nobel d’Economie", explains their research, and its role in the economy, society, and the perception of economists.
How Activist Short Sellers Police Financial Markets
New research analyzes how activist short sellers’ “research reports” convince investors that the companies they target are overvalued. Professors Luc Paugam and Hervé Stolowy of HEC Paris and Yves Gendron of the Université Laval found that the share price of companies targeted by major activist short sellers drop by 11.2%, on average, over three days. Target firms are also more likely to be subsequently delisted, suspended from stock exchanges, or to go bankrupt. Who are activist short sellers and how do they police financial markets?
Why Experiences Might Make Better Gifts for Older Children
What should we get for our kids this holiday season? As children get older, giving them something they can experience (live through) instead of material things makes them happier, according to new research published by HEC Paris professors Tina M. Lowrey and L. J. Shrum.
Should the EU Issue Perpetual Bonds?
The idea of issuing perpetual debt to combat the Covid crisis has recently been floated by prominent public figures such as hedge fund manager George Soros (The EU Should Issue Perpetual Bonds), economist Luis Garicano and former Belgian Prime Minister Guy Verhofstadt (Toward a European Reconstruction Fund). A perpetual bond is a bond that pays an annual coupon forever and whose principal is never repaid. Conceptually, a perpetual bond is a coupon-paying bond with an infinite maturity.
“A $%^* Sexist Program”: Detecting and Addressing AI Bias
A major issue facing companies that use AI, algorithmic bias can perpetuate social inequalities — as well as pose legal and reputational risks to the companies in question. New research at HEC Paris offers a statistical method of tracking down and eliminating unfairness.
How Can We Force Companies To Keep Our Data Safe?
With online shopping, loyalty programs, smart devices and many other aspects of business and daily lives, companies collect vast amounts of our personal data. The risk is that they may be leaked or misused. A team of researchers designs measures that regulators and companies can undertake to preserve consumer privacy.
How We Believe in Unsubstantiated Claims, and How This Leads to Polarization
The COVID-19 pandemic has fostered the sharing of conflicting and unsubstantiated claims by public figures. Early November, a deeply divided nation elected Joe Biden as the President of the United States. A recent research published by professors Anne-Sophie Chaxel of HEC Paris and Sandra Laporte of Toulouse School of Management reveals that individuals believe in unsubstantiated claims when shared by favorite public figures, explaining polarization in opinions. In this article, Anne-Sophie Chaxel explains how do rational people come to strongly believe in unchecked claims.
How Tech Firms Influence the US Supreme Court to Shape Innovation Policies
Building on the long tradition of innovation research that examines changes in firms’ rate and direction of innovation, the research by HEC Paris Professor Elie Sung aims to help further our understanding of firms’ innovation strategy by examining their actions in nonmarket arenas along with their market strategies. Elie Sung has examined how firms and the courts jointly shape patent policy and how in turn those policies shape firms’ innovative activities. This research participates to a long-lasting debate on the relationship between patents and innovation, and strongly contributes to the economics of innovation and to the nonmarket strategy academic literature.
Are Carbon Markets the Solution Against Climate Change?
Global warming is one of the most pressing issues of the 21st century. In order to meet this unprecedented challenge, States and sub-state entities have decided to use an original regulatory instrument: a trading system wherein pollution rights can be exchanged (i.e. a ‘carbon market’). HEC Paris Professor Van Waeyenberge explains why the collaboration between countries has not yet led to satisfying results, and what can be done about it. Given the urgency of the situation, one cannot possibly reconceive or reimagine the current system from scratch, but one can improve it by encouraging complementary measures through the coordination of the various existing initiatives. This coordination could take place via the connections and interlinkages between the different carbon markets initiatives and through the use of new technologies such as the blockchain to implement it.
Developing an Automated Compliance App to help Firms Comply with Privacy Regulations