"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

Départements : Droit et fiscalité, 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

octobre 2009, vol. 88, pp.411-432

Départements : Droit et fiscalité

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

Départements : 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

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

Départements : 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

Départements : 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

A Multiplicative Model of Optimal CEO Incentives in Market Equilibrium

A. LANDIER, Alex Edmans, Xavier Gabaix

Review of Financial Studies

décembre 2009, vol. 22, n°12, pp.4881-4917

Départements : Finance, GREGHEC (CNRS)

Mots clés : D3 - Distribution G34 - Mergers; Acquisitions; Restructuring; Corporate Governance J3 - Wages, Compensation, and Labor Costs D2 - Production and Organizations

This paper presents a unified theory of both the level and sensitivity of pay in competitive market equilibrium, by embedding a moral hazard problem into a talent assignment model. By considering multiplicative specifications for the CEO's utility and production functions, we generate a number of different results from traditional additive models. First, both the CEO's low fractional ownership (the Jensen–Murphy incentives measure) and its negative relationship with firm size can be quantitatively reconciled with optimal contracting, and thus need not reflect rent extraction. Second, the dollar change in wealth for a percentage change in firm value, divided by annual pay, is independent of firm size, and therefore a desirable empirical measure of incentives. Third, incentive pay is effective at solving agency problems with multiplicative impacts on firm value, such as strategy choice. However, additive issues such as perk consumption are best addressed through direct monitoring

A Three-Way Clusterwise Bilinear Multidimensional Scaling Methodology for the Spatial Representation of Dynamic Preferences

S. ATALAY, S. Blanchard, W. DeSarbo

Computational Statistics and Data Analysis

15 juin 2009, vol. 53, n°8, pp.3217-3230

Départements : Marketing

Mots clés : Simultaneous classification, Degenerate solutions, Linear-regression, Vector model, Behavior, Variables, Perspective, Decisions, Component, Ratings

Various deterministic and latent structure approaches for combining forms of multidimensional scaling and cluster analysis have been previously discussed. A new clusterwise three-way unfolding methodology for the analysis of two-way or three-way metric dominance/preference data is proposed. The purpose of this proposed methodology is to simultaneously estimate a joint space of stimuli and cluster ideal point representations, as well as the clusters themselves, such that the geometry underlying the clusterwise model renders some indication of the underlying structure in the data. In the three-way case, it is shown how multiple ideal points can represent preference change over contexts or situations. Partitions, overlapping clusters, stationary and context dependent preference representations are allowed. After a literature review of related methodological research, the technical details of the proposed three-way clusterwise spatial unfolding model are presented in terms of modeling context/situational dependent preferences (i.e., preferences for various stimuli collected over the same set of subjects over time, situation, etc.). The psychological basis for the models is provided in terms of the extensive behavioral decision theory and consumer psychology literature on contextual preferences and situational effects. An application to a data set exploring preferences for breakfast/snack food data over a number of different usage situations is then presented, followed by a discussion on future potential research directions.

Absorbing games with compact action spaces

J. Mertens, D. ROSENBERG, A. Neyman

Mathematics of Operations Research

mai 2009, vol. 34, n°2, pp.257-262

Départements : Economie et Sciences de la décision, GREGHEC (CNRS)

pas sous affiliation HEC

Adoption of new online services in the presence of network externalities and complementarities


Electronic Commerce Research and Applications

janvier-février 2009, vol. 8, n°1, pp.3-15

Départements : Information Systems and Operations Management

Mots clés : Mixed-usage; Online services; Complementarities; Network externalities; Technology adoption; Punctuated equilibrium

An unprecedented privatisation of mandatory standard-setting: the case of European accounting policy


Critical Perspectives on Accounting

mai 2009, vol. 20, n°4, pp.448-468

Départements : Comptabilité et Contrôle de Gestion, Droit et fiscalité

The EU-member States have long intended to harmonize their respective accounting rules in order to facilitate the comparison between European companies. This process was brutally accelerated by a 2002 regulation announcing that as of 2005, listed companies would be required to comply with the accounting standards enacted by the IASB (International Accounting Standards Board), a private body which, until then, had no public mandate. After having tried to harmonize internally the respective standards of its members, the EU has thus decided to resort to private subcontracting, an even more puzzling decision when one realizes that at the time, the EU had simply no statutory control means on the IASB. Building on this striking episode of privatization of the regulatory process, we first examine the structure and governance of the IASB, and the process leading to the transplantation of its norms into EU law. In a second part, we argue that while diverse, the reasons behind such relinquishment of public authority lie primarily within the EU itself. In a third part, we show that in the area of accounting, such transfer of competences went well beyond known forms of delegation to private sector. In a final part, we discuss the subsequent - and so far successful attempt of the EU to reassert its authority as well as its agenda in this area.*ACCOUNTING -- Standards*ACCOUNTING -- Law & legislation*ACCOUNTING methods*EUROPEAN Union