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.

Rationality of belief or: why savage’s axioms are neither necessary nor sufficient for rationality

Abstract: Economic theory reduces the concept of rationality to internal consistency. As far as beliefs are concerned, rationality is equated with having a prior belief over a “Grand State Space”, describing all possible sources of uncertainties. We argue that this notion is too weak in some senses and too strong in others. It is too weak because it does not distinguish between rational and irrational beliefs. Relatedly, the Bayesian approach, when applied to the Grand State Space, is inherently incapable of describing the formation of prior beliefs. On the other hand, this notion of rationality is too strong because there are many situations in which there is not sufficient information for an individual to generate a Bayesian prior. It follows that the Bayesian approach is neither sufficient not necessary for the rationality of beliefs. 1. Rationality of Belief and Belief Formation Economic theory is both the birthplace and the prime application of the rational choice paradigm. Throughout the 20 th century, economics has relied on rationality, and refined the definition of rational choice, offering concepts such as subjective expected utility maximization and Nash equilibrium, which have proved useful in several other disciplines.

Language policies and communication in multinational companies: Alignment with strategic orientation and human resource management practices

Abstract: This article focuses on the degree of alignment among multinational company (MNC) strategic orientation, human resource management (HRM) practices, and language policies. On the one hand, the authors propose that the coherent, tight alignment among the HRM practices, language policies, and MNC strategic orientation, in terms of ethnocentricity, polycentricity, or geocentricity, is beneficial. On the other hand, they use international business research on language in MNCs to illustrate that what is good in theory is often more difficult in practice. For example, HRM practices and language policies in foreign subsidiaries may not be tightly aligned with the corporate-level activities, and some hybridization tends to occur, for example, because of contextual reasons in host countries.

The Other January Effect

Abstract: "Streetlore" has touted the market return in January as a predictor of market returns for the remainder of the year since at least 1973. We systematically examine the predictive power of January returns over the period 1940-2003 and find that January returns have predictive power for market returns over the next 11 months of the year. The effect persists after controlling for macroeconomic/business cycle variables that have been shown to predict stock returns, the Presidential Cycle in returns, and investor sentiment and persists among both large and small capitalization stocks and among both value and glamour stocks. Additionally, we find that January has predictive power for two of the three premiums in the Fama-French (1993) three-factor model of asset pricing.

Cognition, persuasion and decision making in older consumers

Abstract: Older adults constitute a rapidly growing demographic segment, but relatively little is known about them within consumer contexts: how they process information, respond to persuasive messages, and make decisions. We discuss extant findings from consumer behavior and related disciplines (e.g., cognitive psychology, neuroscience, social psychology, gerontology) as they pertain to the effects of aging on consumer memory, persuasion and decision

Horizontal alliances as an alternative to autonomous production: product expansion mode choice in the worldwide aircraft industry 1945–2000

Abstract: This study investigates why firms choose to undertake product expansion through alliances with competitors rather than on their own. We highlight product heterogeneity as a determinant of this make or ally choice. We propose that firms turn to horizontal alliances in order to implement product expansion projects that require greater resources than those available to them. More precisely, we hypothesize that a firm is more likely to launch a new product through a horizontal alliance rather than autonomously when the resource requirements of the project are greater, the resources available to the firm are more limited, there is a mismatch between resource endowment and requirement, and the firm's collaborative competence allows it to better cope with the interorganizational concerns that collaboration with competitors raises. We find support for our arguments on a sample of 310 new aircraft developments launched between 1945 and 2000, either by a single prime contractor or as a horizontal alliance in which prime contractorship is shared with another industry incumbent. Copyright © 2009 John Wiley & Sons, Ltd.