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.

Giants at the Gate: Investment Returns and Diseconomies of Scale in Private Equity

Abstract: We document the wide dispersion of private equity investment returns and examine performance determinants using a newly constructed database of 7,500 investments worldwide. One in ten investments does not return any money, whereas one in four has an IRR above 50%. Quick flips are associated with some of the highest returns. Performance does not appear scalable: Investments held by private equity firms in periods with a high number of simultaneous investments underperform substantially. Results are consistent with the theoretical literature on organizational diseconomies linked to firm structure. Private equity firms’ actions do not appear to be mechanical or easily scalable.

The Philosophy and Methods of Deliberative Democracy: Implications for Public Policy and Marketing

Abstract: Urgent social problems increasingly arise at the intersection of the interests of business leaders, policy makers, and consumers The authors argue that deliberative democracy offers a fruitful approach for understanding marketing's impact on society by revealing the complex and often conflicting network of interests among stakeholders Deliberative methods hold promise for easing constraints on civic engagement and increasing consumer empowerment The authors explore the historical and philosophical underpinnings of deliberative democracy Specifically, they evaluate popular methods and applications of deliberative democracy and examine the implications for public policy and marketing

Are millennials really more sensitive to sustainable luxury? A cross-generational international comparison of sustainability consciousness when buying luxury

Abstract: Sustainable development is on the agenda of all economic sectors. This is a radical change for the luxury market, so far discreet on these matters. In addition, baby boomers have passed the torch to new segments of luxury purchasers: Generation X-ers and now millennials, the latter being described as most sensitive to sustainability issues in general. But is their alleged sensitivity still front of their mind when they buy luxuries? A cross-generational international comparison reveals that millennials’ sensitivity to the sustainability of luxury brands when purchasing luxuries is not that different from older generations. However, the motivations of luxury buyers’ sensitivity (or total lack of) to the sustainable actions of luxury brands differ across generations. Millennials are those who consider the most that luxury and sustainability are contradictory. This opinion is held across countries, Asian or Western, in emerging or mature economies. These millennials’ specificities have strong implications if luxury brands wish to preserve their sustainable future.

Eliciting Prospect Theory When Consequences Are Measured in Time Units: “Time Is Not Money”

Abstract: We elicited the prospect theory components utility, probability weighting, and loss aversion when consequences are expressed as the time dedicated to a specific task or activity. A similar elicitation was performed for monetary consequences to allow an across-attribute time/money comparison of the elicited components at the individual level. We obtained less concave utility and smaller loss aversion for time than for money. Moreover, while the probability weighting was predominantly inverse S-shaped for both attributes, it was less sensitive to probabilities and more elevated for time than for money. This finding implies more optimism for gains and more pessimism for losses. This paper was accepted by Peter Wakker, decision analysis.