Behavioral heterogeneity and the income effect

L. E. CALVET, E. Comon

Review of Economics and Statistics

août 2003, vol. 85, n°3, pp.653-669

Départements : Finance, GREGHEC (CNRS)

Inspired by the recent literature on aggregation theory, this paper introduces HITS, a semiparametric model of consumer demand that allows for diversity in tastes. The strong variation of budget shares observed across income groups has two possible origins: the individual income effect, and taste differences between poor and rich households. Consumer surveys reporting repeated cross sections do not permit the direct measurement of these two effects. In HITS, linear heterogeneity allows the GMM estimation of structural coefficients on an aggregate series. The joint density of spending and tastes is then recovered from cross sections by a nonparametric procedure involving a deconvolution. We estimate the model on British data (1968-1998) and report that taste heterogeneity explains a large fraction of the variation of budget shares with income.

Bringing Together Strategic Outsourcing and Corporate Strategy: Outsourcing Morives and Risks

B. QUÉLIN, F. Duhamel

European Management Journal

octobre 2003, vol. 21, n°5, pp.467-661

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : Corporate strategy, Strategic outsourcing, Core business, Risk

The authors report the results of a study on the motives of corporate headquarters in large European manufacturing firms for engaging in outsourcing and the risks they perceive to be associated with strategic outsourcing operations. Four main issues can be highlighted: preoccupations about core businesses and reduction of cost of capital are linked; access to external expertise and quality improvements are specific expectations for outsourcing firms; operational cost savings, still a predominant concern, must be balanced with the cost of monitoring suppliers; the ‘increased flexibility’ objective emerges as a distinct issue

British American Tobacco: nuovo capitolo della saga "Union de pequeños agricultores - Jégo Quéré"?


Il Diritto dell'Unione Europea

2003, n°3

Départements : Droit et fiscalité, GREGHEC (CNRS)

Building Consensual Institutions: Networks and the National Estuary Program

M. Schneider, J. Scholz, M. Lubell, M. Edwardsen, D. MINDRUTA

American Journal of Political Science

2003, vol. 47, n°1, pp.143-158

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Currently, many approaches to solving policy problems seek to create comm unity-based, less coercive solutions that are creating the conditions for the birth of new regional governmental institutions. We argue that networks form the core of these emergent structures and that federal programs can play a positive role in developing local networks. Our empirical work compares networks in estuaries included in National Estuary Program with networks in comparable estuaries that were not. We find that the networks in NEP areas span more levels of government, integrate more experts into policy discussions, nurture stronger interpersonal ties between stakeholders, and create greater faith in the procedural fairness of local policy, thus laying the foundation for a new form of cooperative governance

Capturing value creation in business relationships: A customer perspective


Industrial Marketing Management

2003, vol. 32, n°8, pp.677-694

Départements : Marketing

Collaborative relationships in business markets are of growing importance to customers and suppliers alike. Customers need to decide whether to invest in a new supplier relationship, to maintain and develop a valued relationship, or to divest from a low-value relationship. Suppliers, in turn, face growing commoditization of products and seek to differentiate themselves through relationships. The measurement of value creation in buyer-seller relationships is still in its infancy, and a sound understanding of how firms create and deliver value in business relationships is needed. Emerging studies investigate relationship value based on dimensions derived from theory and lack a managerial perspective. Therefore, the present research explored relationship value from a grounded theory perspective. In-depth interviews with purchasing managers identified eight value drivers in manufacturer-supplier relationships. Implications for the measurement of the concept are discussed, and directions for further research are suggested. (C) 2003 Elsevier Inc. All rights reserved. Author Keywords: buyer-seller relationships; customer value; relationship value; grounded theory KeyWords Plus: BUYER-SUPPLIER RELATIONSHIPS; PERCEIVED VALUE; SELLER RELATIONSHIPS; MARKETS; QUALITY; SATISFACTION; IMPACT; FIRM

Causal deviance and the attribution of moral responsibility

D. Pizarro, E. L. UHLMANN, P. Bloom

Journal of Experimental Social Psychology

novembre 2003, vol. 39, n°6, pp.653-660

Départements : Management et Ressources Humaines

Are current theories of moral responsibility missing a factor in the attribution of blame and praise? Four studies demonstratedthat even when cause, intention, and outcome (factors generally assumed to be sufficient for the ascription of moral responsibility)are all present, blame and praise are discounted when the factors are not linked together in the usual manner (i.e., cases of ''causaldeviance''). Experiment 4 further demonstrates that this effect of causal deviance is driven by intuitive gut feelings of right andwrong, not logical deliberation

CEO stock options: The silent dimension of ownership

J. McGuire, E. MATTA

Academy of Management Journal

avril 2003, vol. 46, n°2, pp.255-265

Départements : Management et Ressources Humaines

This study examines the ownership and performance implications of the exercise of CEO stock options. We find that the exercise of stock options has no impact on the levels of CEO equity and no relationship with subsequent firm performance. The decision to exercise stock options appears to reflect risk-balancing concerns rather than expectations for future performance.

Combining Gene Expression and Molecular Marker Information for Mapping Complex Trait Genes: A Simulation Study

M. Pérez-Enciso, D. Gianola, M. TENENHAUS, M. A. Toro


2003, vol. 164, pp.1597-1606

Départements : Economie et Sciences de la décision

A method for mapping complex trait genes using cDNA microarray and molecular marker data jointly is presented and illustrated via simulation. We introduce a novel approach for simulating phenotypes and genotypes conditionally on real, publicly available, microarray data. The model assumes an underlying continuous latent variable (liability) related to some measured cDNA expression levels. Partial least-squares logistic regression is used to estimate the liability under several scenarios where the level of gene interaction, the gene effect, and the number of cDNA levels affecting liability are varied. The results suggest that: (1) the usefulness of microarray data for gene mapping increases when both the number of cDNA levels in the underlying liability and the QTL effect decrease and when genes are coexpressed; (2) the correlation between estimated and true liability is large, at least under our simulation settings; (3) it is unlikely that cDNA clones identified as significant with partial least squares (or with some other technique) are the true responsible cDNAs, especially as the number of clones in the liability increases; (4) the number of putatively significant cDNA levels increases critically if cDNAs are coexpressed in a cluster (however, the proportion of true causal cDNAs within the significant ones is similar to that in a no-coexpression scenario); and (5) data reduction is needed to smooth out the variability encountered in expression levels when these are analyzed individually.

Commons with Increasing Marginal Costs: Random Priority Versus Average Cost

H. CRES, H. Moulin

International Economic Review

août 2003, vol. 44, n°3, pp.1097-1115

Départements : Finance

Indivisible units are produced with increasing marginal costs. Under average cost, each user pays average cost. Under random priority, users are randomly ordered (without bias) and successively offered to buy at the true marginal cost. Both average cost (AC) and random priority (RP) inefficiently overproduce. RP tends to overproduce less, but which game collects more surplus depends much on the demand configuration. We show that a key to compare the welfare properties of the two mechanisms is the crowding factor, i.e., the number of potential users over the number of units of output users can afford: The more crowded the commons, the more RP outperforms AC. In the quadratic cost case, beyond the threshold value of 2.4 for the crowding factor, RP strongly outperforms AC; beneath it AC only mildly outperforms RP. Thus the RP mechanism manages crowded commons better than AC.

Conditional Volatility, Skewness, and Kurtosis: Existence, Persistence, and Comovements

M. ROCKINGER, E. Jondeau

Journal of Economic Dynamics and Control

août 2003, vol. 27, n°10, pp.1699-1737

Départements : Finance

Mots clés : Volatility, Skewness, Kurtosis, Generalized Student-t distribution, GARCH, Stock indices, Exchange rates, SNOPT

Recent portfolio-choice, asset-pricing, value-at-risk, and option-valuation models highlight the importance of modeling the asymmetry and tail-fatness of returns. These characteristics are captured by the skewness and the kurtosis. We characterize the maximal range of skewness and kurtosis for which a density exists and show that the generalized Student-t distribution spans a large domain in the maximal set. We use this distribution to model innovations of a GARCH type model, where parameters are conditional. After demonstrating that an autoregressive specification of the parameters may yield spurious results, we estimate and test restrictions of the model, for a set of daily stock-index and foreign-exchange returns. The estimation is implemented as a constrained optimization via a sequential quadratic programming algorithm. Adequacy tests demonstrate the importance of a time-varying distribution for the innovations. In almost all series, we find time dependency of the asymmetry parameter, whereas the degree-of-freedom parameter is generally found to be constant over time. We also provide evidence that skewness is strongly persistent, but kurtosis is much less so. A simulation validates our estimations and we conjecture that normality holds for the estimates. In a cross-section setting, we also document covariability of moments beyond volatility, suggesting that extreme realizations tend to occur simultaneously on different markets