nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2021‒08‒16
five papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Renegotiation and Discrimination in Symmetric Procurement Auctions By Leandro Arozamena; Juan-José Ganuza; Federico Weinschelbaum
  2. Do Retail Investors Value Environmental Impact? A Lab-in-the-Field Experiment with Crowdfunders By Christoph Siemroth; Lars Hornuf
  3. Scenarios for an impact assessment of global bioeconomy strategies: Results from a co-design process By Delzeit, Ruth; Heimann, Tobias; Schünemann, Franziska; Söder, Mareike
  4. Land and the housing affordability crisis: landowner and developer strategies in Luxembourg’s facilitative planning context By Paccoud, Antoine; Hesse, Markus; Becker, Tom; Górczyńska, Magdalena
  5. Attempts by MNCs to Expand the Creative and Innovative Spirit through the Concept of Agility: Role of Global Managers By Vincent Montenero; Cristina Cazorzi

  1. By: Leandro Arozamena; Juan-José Ganuza; Federico Weinschelbaum
    Abstract: In order to make competition open, fair and transparent, procurement regulations often require equal treatment for all bidders. This paper shows how a favorite supplier can be treated preferentially (opening the door to home bias and corruption) even when explicit discrimination is not allowed. We analyze a procurement setting in which the optimal design of the project to be contracted is unknown. The sponsor has to invest in specifying the project. The larger the investment, the higher the probability that the initial design is optimal. When it is not, a bargaining process between the winning firm and the sponsor takes place. Profits from bargaining are larger for the favorite supplier than for its rivals. Given this comparative advantage, the favored firm bids more aggressively and then, it wins more often than standard firms. Finally, we show that the sponsor invests less in specifying the initial design, when favoritism is stronger. Underinvestment in design specification is a tool for providing a comparative advantage to the favored firm.
    Keywords: auctions, favoritism, auction design, renegotiation, corruption
    JEL: C72 D44 D82
    Date: 2021–07
  2. By: Christoph Siemroth; Lars Hornuf
    Abstract: Are investors willing to give up a higher return if the investment generates positive environmental impact? We investigate this question with a decision experiment among crowdfunders, where they choose between a higher return or environmental impact. Overall, 65% of investors choose environmental impact at the expense of a higher return for sufficiently large impact, 14% choose impact independent of the magnitude of impact, while 21% choose the higher return independent of impact. Combining the experimental data with historical investments, we find that investors allocate a larger share of funds to green projects if they value environmental impact more, and if they expect green projects to be more profitable. These findings suggest that investors have a preference for positive environmental impact, and satisfy it by investing in green projects. We further show that the preference for environmental impact is distinct from a preference for positive social impact. Finally, we introduce new survey measures of impact for future use, which are experimentally validated and predict field behavior.
    Keywords: debt crowdfunding, environmental impact, ESG, green investments, social impact, sustainable finance
    JEL: C93 D14 D90 G32
    Date: 2021
  3. By: Delzeit, Ruth; Heimann, Tobias; Schünemann, Franziska; Söder, Mareike
    Abstract: The replacement of fossil resources with renewable biomass in a bioeconomy is seen as a major contribution to climate change mitigation. This transformation will affect all members of society, making it crucial to consider the views of different stakeholders to ensure a socially acceptable transition towards a sustainable bioeconomy. To explore potential outcomes of bioeconomy strategies assuming different future pathways, a scenario analysis is a tool to inform decision-makers about policy impacts and trade-offs. The inter- and transdisciplinary research project 'BioNex - The future of the biomass nexus' is the first project to develop bioeconomy scenarios together with stakeholders from politics, industry, and civil society in an iterative co-design process. As a result, three storylines describing diverging potential global futures are developed and quantified: Towards sustainability, business as usual, and towards resource depletion. The futures are driven by different assumptions on climate policy, cropland expansion, productivity growth in agriculture, prices of fossil energy, and consumption behaviour. Additionally, in the co-design process, three bioeconomy policies are developed: policy as usual, stronger development of the bioeconomy, and no policies. Besides presenting the results of the stakeholder workshops, this paper evaluates the strengths and shortcomings of a stakeholder approach in terms of policy-oriented research. According to the experience made within this study, it provides valuable insights for researchers and funding authorities they can use to optimise the employment of stakeholder-based research approaches.
    Keywords: Co-design,scenario analysis,bioeconomy,modelling framework
    JEL: Q16 C83
    Date: 2021
  4. By: Paccoud, Antoine; Hesse, Markus; Becker, Tom; Górczyńska, Magdalena
    Abstract: The issue of land and its ownership remains under-explored in relation to the housing affordability crisis. We argue that the concentrated ownership of residential land affects housing production in Luxembourg through the interplay of landowner and developer wealth accumulation strategies. Drawing on expert interviews, we first show that the country’s growth-centred ecology has produced a negotiated planning regime that does little to manage the pace of residential development. Through an investigation of the development of 71 large-scale residential projects since 2007, we then identify the private land-based wealth accumulation strategies this facilitative planning regime enables. This analysis of land registry data identifies land hoarding, land banking and the strategic use of the planning system. The Luxembourg case – with its extremes of land concentration, low taxes and public disengagement from land – provides a glimpse at the influence of landowner and property developer strategies on housing affordability free of the usual mediating impact of the planning system.
    Keywords: land; housing; affordability; political economy
    JEL: R14 J01
    Date: 2021–07–29
  5. By: Vincent Montenero (CEFRES - Centre Français de Recherche en Sciences Sociales - CNRS - Centre National de la Recherche Scientifique - MEAE - Ministère de l'Europe et des Affaires étrangères, CVUT - České Vysoké Učení Technické); Cristina Cazorzi (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Faced with an environment that is changing faster and faster, companies have long sought to encourage the almost automatic emergence of new approaches that can respond or even anticipate these changes. The development of creativity has become an essential theme. For more than 20 years, companies have been promoting the concept of agility at the same time as they attempted to extend creativity to all employees. Managers have been called upon to implement the corresponding actions. Our research, based on semi-structured interviews with 35 global managers, analyses several aspects of the implementation of the concepts. We looked particularly at what managers think of agility, how this concept relates to the efforts made to develop creativity, what they experienced, and the conditions for success. The analysis of the responses highlights the significant differences in perception, often linked to the functions performed in the company or to nationalities. Regardless of the value associated with agility, the interviewees agreed on the importance of the manager's role while directing it in three different directions. The discussions also identify a series of necessary, but not sufficient conditions for creativity to emerge. Implications for Central European audience: This paper does not deal with a problem specific to Central Europe. It is a general problem going beyond regional limits, as international management tends to use the same concepts everywhere. However, in its processing, we sought to interview several managers from this geographic area. In the second phase, we plan to improve the representativeness of managers from Central Europe to understand better what is specific to them.
    Keywords: Management,Agility,Creativity,Innovation,National collective identity
    Date: 2021–03–19

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