Multifractality: Theory and Evidence an Application to the French Stock Market

This article presents the basics of multifractal modelling and shows the multifractal properties of the French Stock Market (CAC40). Monte Carlo simulations prove that the Multifractal Model of Asset Returns (MMAR) is a better model to replicate the scaling properties observed in the CAC40 series than alternative specifications like GARCH or FIGARCH.Multifractal model

Hot context for organizational learning

The organizational learning, studied in resource-based view, is a strategic resource (Wernerfelt 1984, Prahalad et Hamel 1990, Doz 1990, Teece 1998, Weartherly 2003). Thus, “learning to learn” (Argyris et Schön, 1978), being a learning organization (Senge 1990, Edmondson et Moingeon 1998, Moilanen 1999, Heraty 2005), and encouraging organizational learning become major issues in management sciences. This contribution aims at fixing and explaining hot organizational learning context dimensions. This approach presents a double interest. First, it enables the validation of the dimensions deducted from literature. Second, this analysis suggests a framework for hot context that emphasized managerial leverages.The first part of our contribution synthetizes the organizational learning literature and particulary analyses its context. It reveals three implicit dimensions in literature : cultural, organizational and social dimension.We have backed up our questioning with a qualitative study of two business units of the public company Electricité de France (EDF). This firm is subjected to many changes in its environment : the opening of European and French electricity markets. EDF has to adapt itself to this context by developing learning capabilities, bringing about synergies between departments and creating a hot context for organizational learning. The collection data has been done at two different times during a nine month period and insures data triangulation : 36 interviews, 7 days of observation and many internal documents. The interviews have been recorded and transcribed. In order to facilitate the data processing, the thematic analysis has been done with N*Vivo software. The empirical study validates the three dimensions identified from literature relevance and brings further information. We have drown four dimensions of a hot context : an individual, an organizational, a social and a managerial dimension. The individual one includes the literature cultural dimension but also identity, emotional and fonctionnal aspects. It corresponds to individual self motivation and theory in use that facilitates sharing and cooperation in the firm. The organizational dimension integrates both organizational and specific learning structures such as guild and coaching. It is set apart from the managarial dimension, which is the support and the influence of the managerial staff. Finally, the social dimension is the result of the interaction of the three previous dimensions. In this way, it constitutes a sine qua non condition to the organizational learning process. Beyond our analysis, we suggest a framework to understand hot context, its dimensions, and develop managerial leverages.organizational learning, organizational context

Aerotropolis: an aviation-linked space

This paper examines the conditions allowing for the formation of aeropolitan areas as large industrial areas with a high concentration of commercial activities in the proximity of cargo airports. When firms deliver part of their production by plane, land competition takes place among service operators, firms and farmers. Service operators supply facilities that firms can take advantage of. Our framework allows selecting a stable land equilibrium: the spatial sequence Airport-Industrial Park-Rural Area (A-I-R). Aerotropolis-type configurations arise around cargo airports when there is an intense use of the airport by the firms and a sufficiently high level of facilities.Aerotropolis; facilities; bid-rent function

STRATEGIC EFFECTS OF AIRLINE ALLIANCES

This paper looks at the endogenous formation of airline alliances bymeans of a two-stage game where first airlines decide whether to form analliance and then fares are determined. We analyze the profitability and thestrategic effects of airline alliances when two complementary alliances,following different paths, may be formed to serve a certain city-pair market.The formation of a complementary alliance is shown to hurt outsiders and thatfares decrease in the interline market. Contrary to what might be expected, wefind that complementary alliances are not always profitable, even in thepresence of economies of traffic density. The interplay between market size, thedegree of product differentiation and the intensity of economies of trafficdensity determines whether the market equilibrium entails no alliances, a singlealliance or a double alliance.complementary airline alliances, economies of traffic density, product differentiation

Airline Competition and Network Structure

This paper characterizes the equilibria in airline networks and their welfare implications in an unregulated environment. Competing airlines may adopt either fully-connected (FC) or hub-and-spoke (HS) network structures; and passengers exhibiting low brand loyalty to their preferred carrier choose an outside option to travel so that markets are partially served by airlines. In this context, carriers adopt hubbing strategies when costs are sufficiently low, and asymmetric equilibria where one carrier chooses a FC strategy and the other chooses a HS strategy may arise. Quite interestingly, flight frequency can become excessive under HS network configurations.fully-connected networks; hub-and-spoke networks; brand loyalty; fully-served markets; partially-served markets

Endogenous Integration and Welfare in Complementary Goods Markets

This paper analyzes the strategic decision to integrate by firms that produce complementary products. Integration entails bundling pricing. We find out that integration is privately profitable for a high enough degree of product differentiation, that profits of the non-integrated firms decrease, and that consumer surplus need not necessarily increase when firms integrate despite the fact that prices diminish. Thus, integration of a system is welfare-improving for a high enough degree of product differentiation combined with a minimum demand advantage relative to the competing system. Overall, and from a number of extensions undertaken, we conclude that bundling need not be anti-competitive and that integration should be permitted only under some circumstances.complementary products; integration; bundling

STRATEGIC EFFECTS OF INTERNATIONAL AIRLINE ALLIANCES

The present paper develops a simple model of a network structure to analyze the profitability and the strategic effects of airline alliances in which two complementary alliances, following different paths, may be formed to serve a certain city-pair market. We examine whether airlines that employ the same hub have an incentive to create an alliance, analyze the effects on carriers outside the alliance and study how fares are affected. We conclude that complementary alliances are profitable for a sufficient degree of product differentiation, which implies that competition intensity is low; that an alliance hurts the outsiders; and that fares will decrease. These findings remain valid to the introduction of more competition in the form of a direct non-stop flight. Our results provide a very simple testable implication that relies on demand parameters that measure the degree of product differentiation, and our findings are consistent with some of the observed facts in the industry.complementary airline alliances, substitute trips, product differentiation

Airline Schedule Competition: Product-Quality Choice in a Duopoly Model

This paper presents a simple model of airline schedule competition that circumvents the complexities of the spatial approach used in earlier papers. Consumers choose between two duopoly carriers, each of which has evenly spaced flights, by comparing the combinations of fare and expected schedule delay that they offer. In contrast to the spatial approach, the particular departure times of individual flights are thus not relevant. The model generates a number of useful comparative-static predictions, while welfare analysis shows that equilibrium flight frequencies tend to be inefficiently low.airline, airline schedule, airline schedule competition, transportation

Airline Schedule Competition: Product-Quality Choice in a Duopoly Model

This paper presents a simple model of airline schedule competition that circumvents the complexities of the spatial approach used in earlier papers. Consumers choose between two duopoly carriers, each of which has evenly spaced flights, by comparing the combinations of fare and expected schedule delay that they offer. In contrast to the spatial approach, the particular departure times of individual flights are thus not relevant. The model generates a number of useful comparative-static predictions, while welfare analysis shows that equilibrium flight frequencies tend to be inefficiently low.

The scaling function-based estimator of the long memory parameter: a comparative study

In this paper an original estimator of long memory is considered. It is based on the scaling function directly extracted from multifractal formalism. Monte Carlo simulations show that the scaling function gives interesting results, notably in terms of confidence intervals, which are smaller than the usual methods.Long memory