SPEAKERS
ESSEC Research Day
ESSEC CERGY CAMPUS | February 08, 2024
KLAB Room
Pierre ALQUIER (ESSEC Business School, Singapore)
Biography:
Pierre Alquier is a Professor of Statistics at ESSEC Business School, in the Asia-Pacific campus in Singapore, since January 2023. He obtained a PhD from Université Pierre et Marie Curie (now, part of Sorbonne Université) in 2006, under the supervision of Prof. Olivier Catoni. He was then a maître de conférences at Université Paris Diderot (now part of Université Paris Cité), a lecturer at UCD Dublin, a professor at ENSAE Paris and a research scientist at RIKEN AIP in Tokyo. He works on high-dimensional statistics and machine learning theory, with a focus on the theoretical analysis of Bayesian algorithm. He served as an area chair for various machine learning conferences including
NeurIPS, AIStats, COLT and ALT. He is an associate editor for the Journal of Machine Learning Research andTransactions in Machine Learning Research.
Presentation Title:
"Understanding catastrophic forgetting in machine learning"
Abstract:
Continual learning is a setting in which an agent has to learn from an incoming stream of data during its entire lifetime. Although major advances have been made in the field, one recurring problem which remains unsolved is that of "catastrophic forgetting": by updating its knowledge while solving new tasks, the agent tends to forget information that was correctly infered from past data during the previous tasks.
We will first provide a general introduction to continual learning and its applications. We will then discuss the first attempts to understand catastrophic forgetting from a statistical perspective. Such a theory is still incomplete, but it already provides hints on how to mitigate forgetting. More precisely, we introduce a mathematical measure of the similarity between various tasks the agent has to solve, called the Neural Tangent Kernel (NTK) overlap matrix. Analyzing the NTK overlap matrix of standard learning algorithms suggests practical modifications of these algorithms that partially avoid forgetting.
Laurent BACH (ESSEC Business School, Cergy)
Biography:
Laurent BIBARD (ESSEC Business School, Cergy)
Biography:
Laurent Bibard is professor at ESSEC Business School, Management Department. He was Dean for the MBA Platform between 2005 and 2010. He teaches political philosophy, sociology and economics. From now on responsible for the Management and philosophy track, he particularly works on vigilance in crises situations. He as well heads the Master program « Water for All » in partnership with AgroParisTech.
After his book edited together with Edgar Morin (Complexité et organisations, Faire face aux défis de demain, 2018), his last books are Phénoménologie des sexualités, La modernité et la question du sens (2021), Dé-coïncider d’avec les études de genre (2022) and in collaboration with Nicolas Sabouret, L’intelligence artificielle n’est pas une question technologique (2023).
Presentation Title:
"Challenging the gender studies and related movements for their profit"
Abstract:
We know, since the beginning of the Ukrainian war, to what extent the Russian side makes the LGBTQIA+ movements an instrument of its politics : the Western culture is reduced to a decadent civilization, making room for any kind of sexual orientation to the detriment of the natural heterosexual relations and related traditions.
We – Western side – should not neglect this kind of argument, for it makes clear the political background of the gender studies and related claims. This political background is made of the emergence through History of the notions of freedom and equality. Forgetting about this emergent phenomenon would make us unable to grasp the real place and role of the gender studies, and to really resist the nowadays tentatives to destroy what has been conquered during centuries.
Now, in order to favor a real freedom, the gender studies become often very close to the so called « cancel culture » trend, due to the ambivalence of the Western actions during the colonizations. This is deeply understandable. But it is at once utmost dangerous : the desire to forget about atrocities and to forget about so far so called heroes would on the very same time drive us to forget about the construction of the notion of the constitutional State – which was for the first time shaped in the context of the Westernian culture. This last notion definitely needs to be constantly defended, for it is indeed this kind of institutions which defend the human rights, among which the right to choose our sexual orientation on a free basis.
In other words, in order to strengthen their action, practically and theoretically at once, the gender studies and the related movements should never forget about the conditions which made them possible. Among which the political ones. This, despite the inherent ambivalence of any human actions.
Fouad EL OUARDIGHI (ESSEC Business School, Cergy)
Biography:
Presentation Title:
"Recent advances in pollution control in economics and management science"
Abstract:
In this talk, I will discuss five important topics related to pollution control in economics and management science that have been the subject of recent scientific advances, namely i) modeling environmental absorption efficiency, ii) the problem of non-cooperative pollution control strategies, iii) the issue of dynamic inconsistency, iv) the search for a unified model of pollution control and deforestation, and v) the integration of pollution control and the exploitation of renewable natural resources. Due to inefficiencies associated with static models, the focus is only on dynamic pollution control models.
Sam GARG (ESSEC Business School, Singapore)
Biography:
Sam Garg (PhD Stanford) is a professor of Management (Strategy & Entrepreneurship) at ESSEC Business School in Singapore. Previously, he was the Liwei Huang Associate Professor of Business at HKUST Business School, where he also co-directed the elite interdisciplinary program BIBU (Biotech in Business). Sam’s research is at the intersection of governance and entrepreneurship, and he has done pioneering work in the area of venture boards and venture governance more broadly. His research has examined sectors such as software, solar panels, and medical devices, in several geographies such as Silicon Valley (and USA broadly), Hong Kong, South-East Asia, South Korea, China and India. Examples of his research include the CEO-Board relationship and effective board processes in privately-held technology ventures, effective board leadership structures when ventures transition into public-listed firms, scaling up of senior executive teams in ventures, the relationship between boards and innovation, and family firm board dynamics. He has published in leading academic journals and also co-authored a book on innovation management in Asia which was one of the top books of the year. Sam is currently an Associate Editor of Strategic Entrepreneurship Journal, an FT-50 journal, and serves on the editorial boards of several other premier academic journals. He is regularly invited to speak at key management conferences as a keynote/plenary speaker and as a consortia mentor for junior faculty/ doctoral students. Drawing on his areas of research expertise, he has also regularly contributed to community organizations, think tanks, and various media outlets.
Presentation Title:
"Remedies for Growing Pains: How Venture Leaders Manage Stalemates when Scaling Senior Executive Teams"
Abstract:
We investigate how venture leaders can effectively manage stalemate conflicts that arise after hiring senior professional executives. Using a multi-case study inductive method, we analyze 21 top management team (TMT) stalemates – i.e., paralyzing communication breakdowns between task-dependent parties – within four Hong Kong fintech ventures that raised venture capital. Our study contributes to the venture professionalization/ scaling literature in several ways. We introduce negative intra-TMT dynamics into the literature by identifying stalemates that emerge during the professionalization process and classifying these stalemates as horizontal or vertical. Importantly, we develop a contingency framework that consists of four actions taken by the venture leaders to manage these stalemates. Our framework reveals that “private mediation” is effective in managing horizontal stalemates and “structural crafting” is effective in managing vertical stalemates. Interestingly, what is effective for horizontal stalemates is ineffective for vertical stalemates. Further, we find “open discussion” and decision enforcement by the venture leaders – two actions suggested in prior conflict management literature – to be ineffective for all types of stalemates in our data. Beyond venture professionalization, we offer a fresh lens on conflict management as brokering by highlighting the space and hierarchy in the brokering process. We conclude by suggesting boundary conditions for our theoretical framework.
Elise GOURIER (ESSEC Business School, Cergy)
Biography:
Elise is Associate Professor in Finance at ESSEC. Her research investigates risk premia of listed and private equity, with applications to quantitative risk management and dynamic portfolio optimization. Her work has received prices, was published in top 3 finance journals and presented at top international conferences.
Presentation Title:
''A Greenwashing Index''
Abstract:
We construct a news-implied index of greenwashing. Our index reveals that greenwashing has become particularly prominent in the past five years. Its increase was driven by skepticism towards the financial sector, specifically ESG funds, ESG ratings and green bonds. We show that greenwashing impacts investors' behavior and estimated required premium for climate risk. Unexpected increases in the greenwashing index tend to be followed by decreases of flows into funds advertised as sustainable. They furthermore bias the estimation of stocks' beta on climate risk, distorting the estimated climate risk premium. When accounting for greenwashing, the climate risk premium becomes small and statistically insignificant.
Pierre JACOB (ESSEC Business School, Cergy)
Biography:
Presentation Title: "Sampling probability distributions on constrained spaces"
Abstract:
I will briefly describe the problem of sampling probability distributions and its relevance in statistics, and then I will present some on-going work on the design of algorithms to compute probabilities supported on constrained spaces, for example all the real vectors with a fixed norm, a fixed sum, a fixed product, etc. These strange distributions arise increasingly often, in hypothesis testing, Bayesian inference and other fields.
Olga KLOPP (ESSEC Business School, Cergy)
Biography:
Olga Klopp is Full Professor of Statistics of the Department of Information Systems, Decision Sciences & Statistics at ESSEC Business School and Academic director of the ESSEC-CentraleSupélec and ESSEC-ENSAE Double Degrees. Her research is devoted to high‐dimensional statistics, and especially, matrix completion and network models. She is a member of the ESSEC risk research center, CREAR, and of CREST, ENSAE, Institut Polytechnique de Paris. Olga has published her work in, inter alia, the Journal of the American Statistical Association, NeurIPS, Annals of Statistics and Bernoulli Journal. In 2023, she was elected a Beaufort visiting fellow at St John's college, University of Cambridge. Olga has been a visiting scholar at, inter alia, the University of California-Berkeley, the University of Cambridge, the Statistical and Applied Mathematical SciencesInstitute (SAMSI), Research Triangle Park (NC USA).
ESSEC Resume - LinkedIn - Personal Website
Presentation Title: "Denoising over network with application to partially observed epidemics"
Abstract:
We introduce a novel approach to predict epidemic spread over networks using total variation (TV) denoising, a signal processing technique. We show how application of 1-bit total variation denoiser improves the prediction accuracy of virus spread dynamics on networks especially in the challenging setting of incomplete data.
Veronika KOROM (ESSEC Business School, Cergy)
Biography:
Presentation Title:
"Sanctions against Russia: can we, and should we, go from freezing to seizing Russian assets?"
Abstract:
Economic sanctions involve the suspension of customary trade and financial ties for foreign policy and security reasons. They aim to inflict economic pressure, prompting changes in policies by the target state or non-state actors. Situated between diplomacy and warfare, sanctions have gained popularity as a foreign policy tool over recent decades.
In response to Russia's invasion of Ukraine in February 2022, the European Union (EU) significantly expanded its sanctions against Russia, building upon those imposed in 2014 following the annexation of Crimea. These measures, among others, froze approximately €20 billion in privately held Russian assets and an additional €200 billion from the Russian Central Bank within the EU.
As the conflict persists, pressure is growing to confiscate and utilize the frozen Russian assets in the EU to assist Ukraine in financing its war efforts and reconstruction. In response to this pressure, the EU has introduced several proposals regarding the possible confiscation of the frozen Russian assets.
This presentation will offer a concise analysis of the EU proposals and delve into the potential legal hurdles arising from EU and international law, encompassing aspects like property rights, due process, and State immunity, should the current EU proposals be put into action. Furthermore, it will examine the expected legal repercussions and consider the potential political and financial implications, which should be taken into account when considering whether we can and should transition from freezing Russian assets to seizing them.
Raoul KUBLER (ESSEC Business School, Cergy)
Biography:
Raoul Kubler received his Ph.D. in Marketing from Kiel University in 2012, and was previously Assistant Professor of Marketing at Özyeğin University in Istanbul and Junior Professor of Marketing and Marketing Analytics at WWU Münster. He has also held guest professorships at University of Geneva, UvA, and VU Amsterdam. Prior to working in academia, he worked in the ad industry for over 10 years as a consultant for international brands. He has a strong interest in harvesting insights from user-generated content through machine learning and AI and helping marketing managers make better decisions based on insights from user-generated content.
https://faculty.essec.edu/en/cv/kubler-raoul/
Presentation Title:
"Does banning radical users make them any better? An Analysis of the Impact of the 2021 Twitter User Bans on User Behaviour Post Re-Admission"
Abstract:
The perception of social media and the internet has drastically shifted. Initially hailed as tools for liberation, social media is now widely perceived as a potential threat to democracy. This change is attributed to the rampant spread of hate speech and disinformation. To combat this, platforms primarily use banning policies to enforce user terms. This study leverages the events surrounding the 2021 US Capitol Riots and the 2022 re-admissions of previously banned users by Elon Musk. Our study analyses pre- and post-ban behavior of more than 10,000 Twitter users to understand the impact of bans and re-admissions on user behavior. We show that Twitter mostly re-admitted larger and older accounts with high pre-ban engagement rates, largely ignoring previous hate speech usage and disinformation spreading. Our results indicate that 50% of users do not significantly change their behaviour post-ban, while 35% show a signficant decrease in violations. More worrisome, we also find that 15% of re-admitted users become more radical after re-admission. We subsequently develop a predictive model that helps platform operators to identify individuals who positively react to a ban, and that will screen out users, who will not change their negative behavior or become even more radicalized. The findings will contribute to the ongoing discourse on balancing free speech with the responsibility to curb hate speech and disinformation on social media platforms.
Xavier LAMBIN (ESSEC Business School, Cergy)
Stéfania MARCASSA (CY Cergy Paris University)
Biography:
Stefania Marcassa (female) is an associate professor of Economics at CY Cergy Paris Université (Thema). She is also member of the Human Capital and Economic Opportunity Global Working Group. Prior to her appointment at CY, she had a PostDoc position and taught at the Paris School of Economics (2009-2011). She earned her Ph.D in Economics at the University of Minnesota in 2009. She is an applied economist, specializing in the analysis of gender-relevant research, empirical household economics, and economic history. She is the Gender Equality Officier of CY Cergy Paris Université, the scientific coordinator of the H2020 LeTSGEPs project, and a researcher in the E-WinS project. Since 2020, she co-organises a Webinar in Gender and Family Economics.
CYU Resume - LinkedIn - Personal Website
Presentation Title:
"Migration, Social Change, and the Early Decline in the United States Fertility"
Abstract:
Our study examines the impact of internal migration on the fertility transition in the 19th-century United States. We find evidence that fertility declined at a faster rate in counties experiencing higher rates of outward migration, particularly toward the western frontier. To estimate the causal effect of migration on fertility decline, we leverage the number of acres granted to American war veterans by Congress between 1847 and 1855. Our research explores the propagation of novel family values that influence inter-generational behaviors concerning savings and fertility. Migration, coupled with limited remittance technology, prompted parents to engage in precautionary savings. This phenomenon fostered the decline of the multigenerational family structure rooted in an agricultural economy.
Anca METIU (ESSEC Business School, Cergy)
Biography:
Anca Metiu is a professor in the management department and was previously Associate Dean for the Ph.D. Program (2015-2021). Anca studies the dynamic processes through which teams and individuals engage in knowledge work. She is particularly interested in distributed and developing world work contexts, and in the work practices of new generations of workers. Her work has been published in journals such as: Administrative Science Quarterly, Organization Science, Organization Studies, and Oxford Review of Economic Policy. Her book "The Power of Writing: From Letters to Online Interactions" was published in 2012. She earned a BA in Law and Economics from the University of Sibiu, an MBA at the University of Illinois in Urbana-Champaign and a PhD in Management from the Wharton School of the University of Pennsylvania.
Presentation Title:
"Play and Psychological Safety: Insights into Innovative Work"
Abstract:
Based on ethnographic field research in a high-tech firm, we develop a process study of the complex and highly recursive relationship between play and the psychological safety that is key to innovation. Through our focus on play episodes, we identify several distinct play practices: generalized initiation of play, amplifying play, diffusion of play, and engagement in demonstrative behavior. We show how these practices generate psychological safety via two mechanisms: vulnerability and comradeship. Psychological safety is both a result and a reinforcer of play practices. Once established, psychological safety fosters several work processes on which innovation rests, namely engendering new ideas, finding collaborators, intensifying effort, and addressing difficult conversations and conflict. By articulating the mechanisms and feedback loops connecting play practices with psychological safety, our inductive model advances the understanding of the conditions that enable innovation in contemporary organizations.
Giordano MION (ESSEC Business School, Cergy)
Biography:
Giordano Mion is currently Professor of Economics at the ESSEC Business School, France. Before joining the ESSEC Business School in 2022, Giordano Mion was a Professor at the University of Sussex (2015-2022) and at the University of Surrey (2013-2015), a Lecturer at the London School of Economics (2009-2013), as well as post-doctoral fellow at the Université Catholique de Louvain in Belgium (2005-2008) from which he received a PhD in Economics in 2004. He was also a visiting scholar at the Paris School of Economics, University of Toronto and University of Bologna. Past research awards include the Highly Cited Authors Award from the Journal of Urban Economics and the Mundell Prize form the Canadian Journal of Economics. He is currently a member of the editorial board of the Journal of Economic Geography as well as of Regional Science and Urban Economics. Giordano Mion is currently a Research Fellow of the Centre for Economic and Policy Research (CEPR) and The Productivity Institute (TPI) and is associated to the Centre for Economic Performance (CEP) at the London School of Economics, the Center for Economic Studies and the Ifo Institute (CESifo), the National Institute of Economic and Social Research (NIESR) and the Centre for Research on Globalisation and Economic Policy (GEP) at the University of Nottingham. His research and teaching focus on International Trade, Urban Economics and Applied Econometrics. He has been publishing in international peer-reviewed journals including the Quarterly Journal of Economics, the Journal of Political Economy, the Journal of International Economics, the Journal of Urban Economics, the Economic Journal, the International Economic Review and the Review of Economics and Statistics. He has also conducted a number of studies and consultancies for the UK Trade and Investment agency, the UK Department for Transport, the UK Business and Investment agency and the European Central Bank.
Presentation Title:
"From climate shocks to firm productivity, demand and markups in a (de-)globalised world."
Abstract:
In a fast-evolving global context of polycrisis, understanding the impact of physical climate change on the economy can bolster the economic response and design of policies aimed at supporting the adaptation efforts. This is combined with a geopolitical context, in the wake of COVID-19, that encourages greater self-sufficiency and fosters supply chain resilience.
This project aims to bring together several approaches from the economics literature to improve the understanding of how climate shocks and their frequency affect different firm-level margins e.g., productivity, output and markups. In addition, it will explore whether these effects have increased with economic uncertainty in a post-COVID age of slowbalisation/de-globalisation (Antras, 2021).
We will use data on past weather to then construct, as in Peersman (2022) and De Winne and Peersman (2021), exogenous (to the Belgian economy) agricultural price shocks. We will then combine the Business to Business data (allowing to observe the network of firm transactions within Belgium and so the propagation of price shocks) with the Prodcom data (allowing to observe quantities produced and prices of detailed manufacturing products), as well as more standard balance sheet and international trade data, over a recent period of time (2012-2022). This will allow us to obtain measures of productivity, demand and markups while paying attention to both the cross-sectional and dynamic features of the data and exploring relevant issue like the propagation of agricultural price shocks, multi-product firms, servitisation of manufacturing firms and ownership links.
Luciana RADUT-GAGHI (Professeur des universités Vice-présidente Relations internationales et partenariats stratégiques - CY Cergy Paris University)
Biography:
Roberto RENO (ESSEC Business School, Cergy)
Biography:
Roberto Renò is Professor at the IDS Department (Information Systems, Decision Sciences and Statistics) at ESSEC Business School. Formerly, he was Visiting Professor at the Carey Business School at the Johns Hopkins University of Baltimore; Senior Fellow at Collegio Carlo Alberto, Turin; Fernand Braudel Fellow at the European University Institute in Florence; Full Professor at the University of Verona; Associate and Assistant Professor of Quantitative Finance at the University of Siena.Visiting Professor at LUISS, Rome and IMT, Lucca. He holds a PhD in Financial Mathematics at Scuola Normale Superiore in Pisa, and a Degree in Physics at the University of Pisa. His research focuses on various aspects of econometrics and finance, with specific contributions in asset pricing, high frequency financial econometrics, nonparametric statistics. He published research papers on leading finance, economics, econometrics, mathematics and physics journals.
Presentation Title:
“0DTE Options”
Abstract:
The market for ultra short-tenor (zero days-to-expiry or 0DTE) options has grown exponen- tially over the last few years. In 2023, daily volume in 0DTEs reached over 45% of overall daily option volume. After briefly describing this exploding new market, we present a novel pricing formula designed to capture the shape of the 0DTE implied volatility surface. Pricing hinges on an Edgeworth-like expansion of the conditional characteristic function of the continuous portion of the underlying’s price process. The expansion shifts probability mass from an oth- erwise locally Gaussian return density by adding time-varying skewness (through leverage) and time-varying kurtosis (through the volatility-of-volatility). The expansion is local in time and, therefore, naturally suited to price ultra short-tenor instruments, like 0DTEs. We document considerable (1) price and (2) hedging improvements as compared to state-of-the-art specifica- tions. We conclude by providing suggestive results on nearly instantaneous predictability by estimating 0DTE-based return/variance risk premia.
Andrea RONCORONI (ESSEC Business School, Cergy)
Biography:
Andrea Roncoroni is a Professor of Finance at ESSEC Business School (Paris) and Visiting Fellow at Bocconi University (Milan). He serves as President of the Commodity and Energy Markets Association and as Director of the Energy and Commodity Finance (ECOMFIN) Research Center. His research work deals with stochastic modeling, risk management, and asset allocation, with a focus on nonfinancial firms and commodity markets. He published in Operations Research, J. Business, J. Banking & Finance, European J. Operational Research, and Energy Economics, among others.
ESSEC Resume - LinkedIn - Personal website
Presentation Title:
"All-Weather Hedging, Reshoring Decision Making, and Integrated Risk Management"
Abstract:
Corporate risk may dramatically change after severe market shocks (say a pandemic, a geopolitical turmoil, or an extreme weather event). This change may undermine the effectiveness of standing hedging policies and drain liquidity to perform the required policy adjustments. We propose a criterion to design the most conservative hedge over an appropriate dimension of model uncertainty, say the supply chain reliability. Our theory is first developed within a stylized newsvendor model featuring an unreliable supplier. Next, concepts and heuristics are applied to a more realistic model of production off/re-shoring. We highlight benefits and costs related to an all-weather approach and demonstrate the related time saving effects.
Chrystelle RICHARD (ESSEC Business School, Cergy)
Biography:
Chrystelle Richard is associate professor in the Department of Accounting and Management Control. Her primary research interests focus on firms’ oversight (financial audit, audit committees, proxy advisors) and new forms of economic governance (public-private partnerships, regulation of the financial industry).
Chrystelle Richard has been assistant professor at Dauphine University, as well as visiting scholar at the London School of Economics, Sciences Po and Mines Paris – PSL. She has published in well-known academic journals, received the “Professor Teaching Award”, taken responsibilities in the academic associations of her field, and been invited to participate in groups of experts in accounting and auditing at the national and international level. She is currently the president of the French Accounting Association (AFC), and on January 1, 2024 she began her term of service as board member of the International Auditing and Assurance
Standards Board (IAASB).
Chrystelle Richard is a former student of the Ecole Normale Supérieure and holds a PhD in Management Studies.
Presentation Title: "Accounting Numbers as Weapons: A study of Repertoires in the battle for Shareholders’ Votes"
Abstract:
Activist hedge funds are becoming a major disruptive force in capitalism that contributes to fracture the traditional inner circle of corporate elite by imposing new narratives to shareholders. Our study aims to better understand how this is done and how corporate elites confront such threat by examining the repertoires of contention used by an activist hedge fund and a corporate board during the struggle for the control of a large Canadian company. Theoretically, this study introduces the notion of repertoire of contention to capture the differences in narratives during struggles over corporate control. This complements existing approaches which focused on the immediate strategic interactions between actors involved in discursive challenges to account for the role of hysteresis, which depends on the past position of actors, path dependence, which depends on the choices made during the discursive struggle, in how actors develop their narratives. Our study also accounts for the reactions of shareholders and different stakeholders to different repertoires and how this contributes to challenge established corporate elites, contributing to research on the evolution of financial capitalism.
Stéphanie RUPHY (Ecole normale supérieure - Université PSL & the National Director of the French Office for Scientific Integrity (Ofis)
Luciano SOMOZA (ESSEC Business School, Cergy)
Biography:
Luciano Somoza has recently joined the finance department as an assistant professor. He completed his PhD in Finance at the Swiss Finance Institute in Lausanne. During his doctoral studies, he visited the NYU Stern’s finance department and the London School of Economics' economics department. Luciano's research encompasses digital money, FinTech, banking, and monetary policy. He holds dual Italian and Argentinean nationalities and obtained his bachelor's degree from Bocconi University.
Presentation Title:
"The Monetary Entanglement between CBDC and Central Bank Policies"
Abstract:
Using a two-period equilibrium model, we show that the effects of introducing a Central Bank Digital Currency (CBDC) depend on the ongoing monetary policy. We derive neutrality conditions without direct pass-through policies and find that they do not always hold with quantitative easing, as bank lending shrinks if demand for CBDC is above a certain threshold. Moreover, we find that commercial banks optimally liquidate excess reserves in the system to accommodate households’ demand for CBDC. This leads to the replacement of banks with households on the liability side of the central bank balance sheet, making quantitative tightening difficult to implement.
Camilla ZALLOT (ESSEC Business School, Cergy)
Biography:
Presentation Title:
"Consumption Motives and the Endorsement of Market Norms"
Abstract:
Economic notions suggest that higher WTPs reflect stronger preferences, and that selling to the highest bidder is the most efficient way to allocate goods. Consumer research, however, has identified a range of situations under which people do not endorse these notions. For example, people seek to allocate good to those with the strongest need for them independent of WTP (Deutsch, 1975); they do not endorse markets when they believe resources are not comparable or preferences are too similar (Shaddy and Shah, 2018, 2022), or when relational boundaries between buyer and seller are crossed (McGraw 2005). We add to this stream of research by investigating the effect of consumption motives (functional, hedonic or symbolic) on the extent to which people consider WTP an appropriate way to sort preferences and to allocate goods. In four studies so far, we demonstrate that while functional and hedonic motives correlate positively, symbolic motives correlate negatively with the perceived appropriateness of allocating through a market and with the preference for a market over random allocation (Study 1). In Study 2a, we manipulate consumption motive between-subject and show that participants are less likely to endorse selling to the highest bidder (vs a random allocation) when it is symbolic. In Study 2b, we show that the same effect is mediated by perceived motive ‘meaningfulness’ and not by perceived need or preference strength. In Study 3, we show that perceived motive meaningfulness increases the extent to which sellers are willing to reduce their WTA for a hypothetical sale, despite their predictions that the buyer’s WTP does not change or increases as meaningfulness increases.