Optimizing Service Failure and Damage Control


International Journal of Research in Marketing

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Départements : Marketing, GREGHEC (CNRS)

Mots clés : Service Quality, Service Reliability, Service Failure, Damage Control

Should a provider deliver a reliable service or should it allow for occasional service failures? This paper derives conditions under which randomizing service quality can benefit the provider and society. In addition to cost considerations, heterogeneity in customer damages from service failures allows the provider to generate profit from selling damage prevention services or offering compensation to high-damage customers. This strategy is viable even when reputation counts and markets are competitive

Organization Design, Proximity, and Productivity Responses to Upward Social Comparison


Organization Science

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

Mots clés : Incentives, Social Comparison Costs, Envy, Productivity, Organization Design

We investigate the mechanisms that shape social comparison in organizations and generate socialcomparison costs. In particular, we focus on heterogeneity in the strength and type of incentivesand argue that, from an efficient design perspective, such variance in rewards is a double edgedsword. While the sorting and incentive effects that result may increase productivity, the socialcomparison processes that arise may dampen it. We posit that the mechanisms underlying thesebehavioral costs are shaped not only by the magnitude of reward variance, but by the formal andinformal design elements shaping the distance of advantaged peers. In other words, the moreproximate socially, structurally or geographically are those to whom one socially compares, thelarger the behavioral response. Empirically, we use an unanticipated event during which outlets ofa bank, previously operating under essentially homogenous incentives, were assigned totournament groups with differing ex ante probabilities of winning a prize—an event that increasesvariance in awards and hence generates an impetus for social comparison. We find that units withmore socially, geographically, and structurally proximate peers assigned to ‘advantaged’tournament groups decreased their productivity. We discuss implications of these results fororganizational design and boundaries

Payment Evasion


Journal of Industrial Economics

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Départements : Marketing, GREGHEC (CNRS)

Priority optimization and make-to-stock/make-to-order decision in multiproduct manufacturing systems

K. Hadj Youssef, C. VAN DELFT, Y. Dallery

International Transactions in Operational Research

A paraître, pp.1-21

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : make-to-stock (MTS); make-to-order (MTO); priority level; heterogeneous multiproduct produc-tion/inventory system; queuing model

We consider a single-stage multiproduct manufacturing facility producing a large number of end products.In order to reduce overall inventory costs, an efficient approach is to produce some items according to amake-to-stock (MTS) policy and others according to a make-to-order (MTO) policy. Items priority levelsplay a key role in the optimal MTO/MTS decisions for such typical large-scale systems. To tackle this issue,the manufacturing facility is modeled as a multiproduct multipriority classes queuing system. We proposea general optimization procedure that selects near-optimal priority classes, gives the associated flow controlmode (MTO or MTS) for each product, and provides a lower bound and an upper bound with respect to theoptimal cost. First, we illustrate efficiency of our optimization procedure for this class of nonlinear integerprograms via several examples and by a numerical analysis, including a comparison with two alternativeheuristics given in the literature. In addition, we provide managerial insights by exhibiting, under variousparameter settings, the significant impact of an efficient priority level allocation among items on the inventorycosts and on optimal splitting between MTO and MTS product

Reinforcing the Public Law Taboo: A Note on Hellenic Republic v Nikiforidis


European Law Review

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Départements : Droit et fiscalité, GREGHEC (CNRS)

Mots clés : mandatory rules, EU private international law, Rome I Convention, Rome I Regulation

This article hinges on the preliminary ruling rendered by the Court of Justice of the European Union (ECJ) (Grand Chamber) on 18 October 2016 and the related judgment of the German Federal Labour Court of 26 April 2017 in the Nikiforidis case to investigate an area of private international law that is undergoing a substantial development: overriding mandatory provisions. In Nikiforidis, the ECJ excluded that two Greek laws cutting the salary of public employees may be enforced against a teacher working in Germany for the Greek government under an employment contract governed by German law. The question addressed to ECJ was whether said laws were “overriding mandatory provisions” according to the Rome I Regulation. The court denied it, and left to the referring court to determine whether they could nevertheless operate “as matter of fact” under the governing law. This article explains how the ECJ’s conclusion has broader implications by regulating third countries’ interference in international business transactions. Starting with an analysis of the case, the article examines the history and nature of overriding mandatory provisions under EU private international law and argues that the solution embraced by the ECJ leaves room to uncertainty and unpredictability in the operation of foreign mandatory provisions

Repeated games with public deterministic monitoring


Journal of Economic Theory

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

Risk-Based Capital Requirements for Banks and International Trade


Review of Financial Studies

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

Scheduling non-operating room anesthesia cases in endoscopy: using the sandbox analogy


Journal of Clinical Anesthesia

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Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Seeking and Avoiding Choice Closure


Journal of Consumer Research

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Social Presence in Virtual World Collaboration: An Uncertainty Reduction Perspective Using a Mixed Methods Approach


MIS Quarterly

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Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Virtual worlds, uncertainty reduction theory, institutional trust, sequential mixed methods

The life-like collaborative potential offered by virtual worlds (VWs) has sparked significant interest for companies to experiment with VWs in order to organize convenient, cost-effective virtual global workplaces. Despite the initial hype, recent years have witnessed a rather stagnant use of VWs for collaboration in organizations. Previous research recognizes that the inherent uncertainties within the VW environment are factors limiting their utilization by businesses. Hence, grounding this research in uncertainty reduction theory (URT), we aim to understand the modalities and mechanisms for mitigating the uncertainties and fostering user trust within VWs so that they can be effectively utilized as a workplace collaboration tool. With this end in view, we propose contextualizing and extending McKnight et al.’s (2002) institutional trust framework to the context of VWs by examining the significant role that social presence has in influencing the efficacy of the institution-based trust-building factors of situational normality and structural assurance in VWs. Using a sequential mixed methods approach (Venkatesh et al. 2013; Venkatesh et al. 2016), this research integrates results from a quantitative study with findings from a qualitative study to arrive at rich and robust inferences and meta-inferences, with the qualitative method first corroborating the inferences obtained from the quantitative research and then complementing them by identifying boundary conditions that may limit the use of VWs in organizations for workplace collaboration. The results together suggest not only the direct, but also the interactional (complementary and substitutive) influences of social presence on the relationships of the two institutional-trust-building factors to user trust in VWs