Radu Vranceanu | ESSEC Business School (original) (raw)

Papers by Radu Vranceanu

Research paper thumbnail of Facta Non Verba': An Experiment on Pledging and Giving

SSRN Electronic Journal, 2015

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Working Time and Wage Rate Differences: A Contract Theory Approach

SSRN Electronic Journal, 2019

Bookmarks Related papers MentionsView impact

Research paper thumbnail of The cost of capital in a model of financial intermediation with coordination frictions

Oxford Economic Papers, 2017

This paper studies the impact of coordination frictions in financial markets on the cost of capit... more This paper studies the impact of coordination frictions in financial markets on the cost of capital of real sector projects. In the model, a financial intermediary seeks to raise funds from many small investors, to finance a capital-intensive project. Investors face a coordination problem, as more capital invested in the project increases its chances of success. We employ a global games refinement to characterize the unique equilibrium of the game. The model features a non-monotonic relationship between the cost of capital and project profitability. There exists a ‘socially optimal’ price of capital that maximizes the probability of project success. However, fee-maximizing intermediaries set a return that is higher than the optimal rate. This higher cost of capital is the result of coordination frictions and suggests an inefficiency of the intermediation process. The model best characterizes project finance investments funded through bond markets and yields implications for their cost of capital.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Migrant Smuggling to Europe: A Matching Model

SSRN Electronic Journal, 2022

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Le confinement sera-t-il un tremplin au développement du télétravail et à l’acquisition des compétences digitales demandées sur le marché du travail Luxembourgeois?

Bookmarks Related papers MentionsView impact

Research paper thumbnail of How Serious is the Measurement-Error Problem in a Popular Risk-Aversion Task?

SSRN Electronic Journal, 2019

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Crowdfunding with Overenthusiastic Investors: A Global Game Model

SSRN Electronic Journal, 2018

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Should the firm or the employee pay for upskilling? A contract theory approach

Managerial and Decision Economics

Upskilling involves costly e¤ort on behalf of existing employees to acquire new skills that are r... more Upskilling involves costly e¤ort on behalf of existing employees to acquire new skills that are required to execute high-value added projects. A …rm-…nanced training scheme allows the screening of applicants, but comes with the cost of hidden actions, as some employees might train themselves yet continue working on low-value projects. A policy relying on worker self-training and incentive compatible contracts allows attracting more workers to high-value projects, yet it must grant a positive informational rent to ‡exible workers. The analysis reveals the optimal contract speci…c to each of the two training schemes. The pro…t comparison reveals that the training strategy depends on the how large is the net value created by upskilling, which is a characteristic of the business or industry.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Should the Firm or the Employee Pay for Upskilling? A Contract Theory Approach -Preprint

Managerial and Decision Economics, 2022

Upskilling involves costly e¤ort on behalf of existing employees to acquire new skills that are r... more Upskilling involves costly e¤ort on behalf of existing employees to acquire new skills that are required to execute high-value added projects. A …rm-…nanced training scheme allows the screening of applicants, but comes with the cost of hidden actions, as some employees might train themselves yet continue working on low-value projects. A policy relying on worker self-training and incentive compatible contracts allows attracting more workers to high-value projects, yet it must grant a positive informational rent to ‡exible workers. The analysis reveals the optimal contract speci…c to each of the two training schemes. The pro…t comparison reveals that the training strategy depends on the how large is the net value created by upskilling, which is a characteristic of the business or industry.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Ec C

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés. Centre de recherche B e y o n d E d u c a t i o n *

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version

Risk. ESSECWorking paper. Document de recherche ESSEC / Centre de recherche de l’ESSEC

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés. Document de Recherche ESSEC / ISSN: 1291-9616 Il est interdit de reproduire ce document ou d'en citer des extraits sans l'autorisation écrite des auteurs. It is forbidden to quote all or part of this document without the written consent of the authors.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version: Radu Vranceanu. Corporate Profit, Entrepreneurship Theory and Business Ethics. ESSEC Working paper. Document de Recherche ESSEC / Centre de recherche de l’ESSEC. ISSN

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Market

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of 2008a), "Multiple Equilibria in a Firing Game with Impartial Justice", Labour Economics, on line at http://dx.doi.org/10.1016/j.labeco.2008.09.004

In many European countries, a majority of employees are hired under very protective labor contrac... more In many European countries, a majority of employees are hired under very protective labor contracts that restrict the ability of the employer to dismiss them. In particular, employees can take to courts the firm’s layoff motive. Given the high costs specific to so-called economic motives and judges ’ limited ability to process an ever growing flow of cases, in the last few years firms have been tempted to invoke faked personal motives for firing "good " workers. This paper shows that the interaction between firms, employees and the labor judicial system is consistent with multiple equilibria. Hence firing costs depend not only on variables under the control of the government, but also on the nature of the equilibrium. Policies aiming at increasing flexibility, interpreted as a reduction in firing costs, should consider the possibility of shifting from a high to a low firing costs equilibrium.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of www.essec.edu DESK REJECTION IN AN ACADEMIC PUBLICATION MARKET MODEL WITH MATCHING FRICTIONS

avenue bernard hirsch- BP 50105 CERGY 95021 cergy-pontoise cedex- france

Bookmarks Related papers MentionsView impact

Research paper thumbnail of A Model of Hospital Congestion in Developing Countries

SSRN Electronic Journal, 2018

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Profession and Deception: Experimental Evidence on Lying Behavior among Business and Medical Students

SSRN Electronic Journal, 2020

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Facta Non Verba': An Experiment on Pledging and Giving

SSRN Electronic Journal, 2015

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Working Time and Wage Rate Differences: A Contract Theory Approach

SSRN Electronic Journal, 2019

Bookmarks Related papers MentionsView impact

Research paper thumbnail of The cost of capital in a model of financial intermediation with coordination frictions

Oxford Economic Papers, 2017

This paper studies the impact of coordination frictions in financial markets on the cost of capit... more This paper studies the impact of coordination frictions in financial markets on the cost of capital of real sector projects. In the model, a financial intermediary seeks to raise funds from many small investors, to finance a capital-intensive project. Investors face a coordination problem, as more capital invested in the project increases its chances of success. We employ a global games refinement to characterize the unique equilibrium of the game. The model features a non-monotonic relationship between the cost of capital and project profitability. There exists a ‘socially optimal’ price of capital that maximizes the probability of project success. However, fee-maximizing intermediaries set a return that is higher than the optimal rate. This higher cost of capital is the result of coordination frictions and suggests an inefficiency of the intermediation process. The model best characterizes project finance investments funded through bond markets and yields implications for their cost of capital.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Migrant Smuggling to Europe: A Matching Model

SSRN Electronic Journal, 2022

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Le confinement sera-t-il un tremplin au développement du télétravail et à l’acquisition des compétences digitales demandées sur le marché du travail Luxembourgeois?

Bookmarks Related papers MentionsView impact

Research paper thumbnail of How Serious is the Measurement-Error Problem in a Popular Risk-Aversion Task?

SSRN Electronic Journal, 2019

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Crowdfunding with Overenthusiastic Investors: A Global Game Model

SSRN Electronic Journal, 2018

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Should the firm or the employee pay for upskilling? A contract theory approach

Managerial and Decision Economics

Upskilling involves costly e¤ort on behalf of existing employees to acquire new skills that are r... more Upskilling involves costly e¤ort on behalf of existing employees to acquire new skills that are required to execute high-value added projects. A …rm-…nanced training scheme allows the screening of applicants, but comes with the cost of hidden actions, as some employees might train themselves yet continue working on low-value projects. A policy relying on worker self-training and incentive compatible contracts allows attracting more workers to high-value projects, yet it must grant a positive informational rent to ‡exible workers. The analysis reveals the optimal contract speci…c to each of the two training schemes. The pro…t comparison reveals that the training strategy depends on the how large is the net value created by upskilling, which is a characteristic of the business or industry.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Should the Firm or the Employee Pay for Upskilling? A Contract Theory Approach -Preprint

Managerial and Decision Economics, 2022

Upskilling involves costly e¤ort on behalf of existing employees to acquire new skills that are r... more Upskilling involves costly e¤ort on behalf of existing employees to acquire new skills that are required to execute high-value added projects. A …rm-…nanced training scheme allows the screening of applicants, but comes with the cost of hidden actions, as some employees might train themselves yet continue working on low-value projects. A policy relying on worker self-training and incentive compatible contracts allows attracting more workers to high-value projects, yet it must grant a positive informational rent to ‡exible workers. The analysis reveals the optimal contract speci…c to each of the two training schemes. The pro…t comparison reveals that the training strategy depends on the how large is the net value created by upskilling, which is a characteristic of the business or industry.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Ec C

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés. Centre de recherche B e y o n d E d u c a t i o n *

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version

Risk. ESSECWorking paper. Document de recherche ESSEC / Centre de recherche de l’ESSEC

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés. Document de Recherche ESSEC / ISSN: 1291-9616 Il est interdit de reproduire ce document ou d'en citer des extraits sans l'autorisation écrite des auteurs. It is forbidden to quote all or part of this document without the written consent of the authors.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of To cite this version: Radu Vranceanu. Corporate Profit, Entrepreneurship Theory and Business Ethics. ESSEC Working paper. Document de Recherche ESSEC / Centre de recherche de l’ESSEC. ISSN

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Market

HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific ... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of sci-entific research documents, whether they are pub-lished or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et a ̀ la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of 2008a), "Multiple Equilibria in a Firing Game with Impartial Justice", Labour Economics, on line at http://dx.doi.org/10.1016/j.labeco.2008.09.004

In many European countries, a majority of employees are hired under very protective labor contrac... more In many European countries, a majority of employees are hired under very protective labor contracts that restrict the ability of the employer to dismiss them. In particular, employees can take to courts the firm’s layoff motive. Given the high costs specific to so-called economic motives and judges ’ limited ability to process an ever growing flow of cases, in the last few years firms have been tempted to invoke faked personal motives for firing "good " workers. This paper shows that the interaction between firms, employees and the labor judicial system is consistent with multiple equilibria. Hence firing costs depend not only on variables under the control of the government, but also on the nature of the equilibrium. Policies aiming at increasing flexibility, interpreted as a reduction in firing costs, should consider the possibility of shifting from a high to a low firing costs equilibrium.

Bookmarks Related papers MentionsView impact

Research paper thumbnail of www.essec.edu DESK REJECTION IN AN ACADEMIC PUBLICATION MARKET MODEL WITH MATCHING FRICTIONS

avenue bernard hirsch- BP 50105 CERGY 95021 cergy-pontoise cedex- france

Bookmarks Related papers MentionsView impact

Research paper thumbnail of A Model of Hospital Congestion in Developing Countries

SSRN Electronic Journal, 2018

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Profession and Deception: Experimental Evidence on Lying Behavior among Business and Medical Students

SSRN Electronic Journal, 2020

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Working Time. Theory and Policy Implications

A comprehensive analysis of working time and policies of working time management. Facts, policy, ... more A comprehensive analysis of working time and policies of working time management. Facts, policy, several models investigating the impact of working time reduction on employment, unemployment and wages.

Bookmarks Related papers MentionsView impact