HEC Paris

About: HEC Paris is a education organization based out in Jouy-en-Josas, France. It is known for research contribution in the topics: Investment (macroeconomics) & Market liquidity. The organization has 584 authors who have published 2756 publications receiving 104467 citations. The organization is also known as: Ecole des Hautes Etudes Commerciales & HEC School of Management Paris.

Scheduling with Opting Out: Improving upon Random Priority

Abstract: In a scheduling problem where agents can opt out, we show that the familiar random priority RP mechanism can be improved upon by another mechanism dubbed probabilistic serial PS. Both mechanisms are nonmanipulable in a strong sense, but the latter is Pareto superior to the former and serves a larger expected number of agents. The PS equilibrium outcome is easier to compute than the RP outcome; on the other hand, RP is easier to implement than PS. We show that the improvement of PS over RP is significant but small: at most a couple of percentage points in the relative welfare gain and the relative difference in quantity served. Both gains vanish when the number of agents is large; hence both mechanisms can be used as a proxy of each other.

Fast‐mover advantages: Speed capabilities and entry into the emerging submarket of atlantic basin LNG

Abstract: Entry timing benefits and costs typically vary with firms' capabilities. In this study, we empirically examine the entry timing implications of firms' intrinsic speed capabilities, which refer to the ability to execute investment projects faster than competitors. We hypothesize that firms with intrinsic speed capabilities face low preemption risks and, thus, can afford to wait longer for uncertainty resolution before deciding to enter new markets. This hypothesis is more applicable when investment is associated with higher levels of commitment and, thus, greater option value of waiting. A direct implication is that late entrants with intrinsic speed capabilities should have greater expected post-entry performance. We find support for these hypotheses in the Atlantic Basin liquefied natural gas (LNG) industry from 1996 to 2007. Copyright © 2013 John Wiley & Sons, Ltd.

Toward a New Measure of Organizational Legitimacy: Method, Validation, and Illustration

Abstract: Measures of organizational legitimacy fall in three categories, based, respectively, on the observation of code adoption, firm linkages, and media coverage. Such variety reflects the absence of consensus definitions. Because legitimacy involves perceptions of social congruence, the author argues in favor of a perceptual measure based on media content analysis. The author extends existing media-based indicators by offering a multidimensional measure of legitimacy, the raw legitimacy vector (RLV), which accounts for the heterogeneity of perceptions across space and time. The article details a three-step methodology to compute RLV and illustrates its applicability using data on the global defense industry. The author finds strong support for RLV’s factorial, convergent, discriminant, and criterion-related validity and demonstrates that RLV performs better than alternative measures. The paper contributes to research by identifying four stable dimensions of legitimacy (environment, competition, accountability,...