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Founded in 1978, NOVA School of Business & Economics is one of the most prestigious schools in the areas of Economics, Finance and Management, and a reference in research, pre experience, and executive education that offers Undergraduate, Masters', Ph.D., MBA and Executive Education programs.
NOVA School of Business & Economics is one of the few schools in the world to hold the Triple Crown accreditation, and the exclusive Portuguese member school of CEMS, offering the CEMS Master's in International Management, featured by the Financial Times as one of the best pre-experience Master's in Management programs in the world.
Nova SBE's research seeks to produce knowledge in economics, finance, and management that can foster positive change. We focus on developing research in some of the most challenging economic and social issues, informing on public policies and management practices.
Research is in line with the school's mission which aims to be a community dedicated to the development of talent and knowledge that impacts the world. The school develops top talent through its programs, generating cutting-edge knowledge, both academic and applied.
The Nova School of Business and Economics Working Paper Series was established in January 1983 and includes working papers from faculty, researchers, and Ph.D. students. The Nova SBE Working Paper Series welcomes research containing preliminary findings on three primary disciplinary areas - Economics, Finance, and Management. The series is meant to stimulate research and academic debate. In 2022 an Editorial Board was defined for the series and all the papers submitted undergo peer review to guarantee quality and relevance.
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- Beyond pull-to-centerPublication . Su, Yucheng; Guha, Sreyaa; Ulu, Canan; Seifert, Matthias; NOVA School of Business and Economics (NOVA SBE)We examine how decision makers adjust newsvendor ordering decisions in response to demand signals that are indicative of a demand shift. Demand shifts driven by market changes, seasonality, or external shocks create uncertainty that decision makers frequently encounter in practice. By integrating models that explain the well-known pull-to-center (PTC) effect in static newsvendor environments with models of system neglect that explain how probability judgments react to signals indicative of a demand shift, we predict when PTC and system neglect mitigate versus amplify one another. Specifically, for high-margin products in stable environments with noisy signals and low-margin products in unstable environments with precise signals, system neglect and PTC effect tend to counteract each other, resulting in ordering decisions closer to optimal levels. In the remaining profit margin and demand environments, system neglect amplifies the underordering and overordering behavior resulting from the PTC effect. We test these predictions in experimental settings with uncensored and censored demand signals and find support for our model predictions. We explore the effectiveness of decision support systems and discuss implications for providing managerial interventions in environments with salient demand shifts.
- Before the law takes effectPublication . Guha, Sreyaa; Meggiorin, Katia; Belo, Rodrigo; NOVA School of Business and Economics (NOVA SBE)What if the market impacts of platform regulation begin before the law actually takes effect? While traditional hierarchical firms manage regulatory compliance through top-down mandates, digital platforms face a distinct vulnerability: autonomous supply-side users can preemptively alter their operations, causing immediate platform revenue losses before a law is even enforced. This paper explores how Airbnb hosts respond during the critical approval-to-enforcement window of short-term rental regulation. Using listing-level data from five U.S. cities, combined with ordinance requirements, we show that hosts reduce supply immediately after regulatory approval, well before formal enforcement begins. The decline is gradual, grows as enforcement approaches, and reduces platform revenue and realized bookings. We argue that regulation approval itself makes future operating constraints credible, prompting hosts to reassess whether their current routines can continue under the incoming rules. To test this mechanism, we construct a Regulatory Risk Index that compares each listing’s pre-approval activity to the requirements of the regulation. Listings with higher regulatory risk reduce availability more strongly, especially along the margins directly targeted by regulation, such as multi-listing operation and high prior booking intensity. These early reductions also foretell post-enforcement sorting: listings that scale back more before enforcement are less likely to apply for a license and more likely to exit. Our findings show that anticipatory behavior is not merely a threat to identification or a pre-trend to be controlled away. It is a meaningful market response through which credible future regulation begins reshaping platform supply before enforcement formally starts.
- Advertising competition with associative memoryPublication . Gardete, Pedro M.; Villa-Boas, J. Miguel; NOVA School of Business and Economics (NOVA SBE)This paper studies advertising competition when consumers rely on associative memory. Memory is modeled as a network in which brands become linked to valuerelevant concepts through repeated exposure, and advertising operates by triggering recall. In this environment, communication shapes consideration sets by determining which brands and attributes are jointly brought to mind. In contrast to belief-based persuasion models, communication in our setting is effective even when it conveys little or no new information, as long as it succeeds in inducing recall of the brand together with a value-relevant concept. The paper shows that firms face a trade-off when emphasizing product benefits. Associating a brand with value is necessary to encourage consideration, but doing so may also activate competing brands through shared memory links, intensifying competition. As a result, firms may optimally rely on uninformative advertising: once associations are established, simple brand reminders can sustain relevance while limiting competitive spillovers. When advertising effectiveness is intermediate, however, firms are forced to emphasize value, leading to joint recall and heightened competition. As a result, firms’ profits depend non-monotonically on advertising effectiveness. We further show that utility-irrelevant associations – such as colors, mascots, or symbols – may allow firms to circumvent this trade-off: By linking these cues to value during earlier communication, firms can later use them to trigger recall without activating competing brands, thereby softening competition and increasing profits.
- From destination to originPublication . Batista, Cátia; Bohnet, Lara; Gazeaud, Jules; Seither, Julia; NOVA School of Business and Economics (NOVA SBE)International migration can promote development in both origin and destination countries. We hypothesize that migrant integration in destination countries is an important constraint on these gains. Using a randomized controlled trial, we study the effects of a low-cost, scalable digital intervention designed to reduce information frictions among Cape Verdean immigrants in Portugal. Access to the intervention improves migrants’ labor market outcomes, legal status, social integration with native-born individuals, and aspirations. These integration gains generate international spillovers, increasing political participation and leading to more egalitarian gender norms in the migrants’ origin-country. Leveraging variation in official destination country electoral data, we show that political participation transmits through increased exposure of better-integrated migrants to prevalent local norms at destination. These international turnout spillovers are weaker in localities with higher far-right support, consistent with a less migrant welcoming political climate attenuating norm diffusion.
- Cooperation between national armiesPublication . Richard, Marion; Vanden Eynde, Oliver; NOVA School of Business and Economics (NOVA SBE)The effectiveness of security operations often depends on cooperation between national armies. Such cooperation can be particularly important when international borders are porous and armed groups can operate across borders. We investigate how the creation of an international armed force that could operate across international borders (the G5-Sahel Joint Force) together with improved communication between national armies affected conflict dynamics in the Sahel region. Relying on a regression discontinuity design, we find that the G5 mission lowered the intensity of conflict locally in its zone of operation, especially along border segments more porous due to their geographical features or ethnic composition. Further analysis of geographical conflict propagation patterns indicates that the G5-Sahel force facilitated security operations in border areas.
- Artisanal mining and urbanization in AfricaPublication . Girard, Victoire; Pignède, Édouard; NOVA School of Business and Economics (NOVA SBE)The past three decades have witnessed a dramatic expansion of artisanal and smallscale gold mining (ASgM), transforming the economic and spatial opportunities of tens of millions of people. We show how this transformation has shaped urbanization in Sub-Saharan Africa since 1975. Our empirical strategy exploits plausibly exogenous variation in ASgM activity driven by the interaction between international gold-price shocks and local geological suitability for artisanal extraction, and combines it with new continent-wide data on urban population, nighttime lights, and household welfare. Although ASgM is commonly viewed as a rural activity, we find that ASgM exposure significantly accelerates urbanization, accounting for roughly five percent of total urban population growth. This expansion takes the form of extensive, decentralized urbanization: new towns emerge in remote, infrastructure-poor areas, while the growth of pre-existing towns and cities does not accelerate. Both new and existing urban entities exposed to ASgM exhibit lower living standards and limited industrial activity. Overall, ASgM contributes to a fragmented pattern of urbanization without structural transformation.
- Sibling spillovers and free schoolingPublication . Ferreira, João R.; Sandholtz, Wayne Aaron; NOVA School of Business and Economics (NOVA SBE)We use administrative data to measure sibling spillovers on academic performance before and after the introduction of Free Secondary Education (FSE) in Tanzania. Prior to FSE, students whose older siblings narrowly passed the secondary school entrance exam were less likely to go to secondary school themselves; with FSE, the effect became positive. A triple-differences analysis, using geographic variation in FSE exposure, shows that FSE caused the reversal. Mechanism analyses suggest that changes in parental investments were a more likely channel for this reversal than direct sibling interactions. By alleviating financial constraints, FSE allowed households to distribute educational investments more equitably rather than concentrating resources on high-performing children.
- Socially responsible investing and multinationals' environmental harm: Evidence from global remote sensing dataPublication . Gianinazzi, Virginia; Girard, Victoire; Lehlali, Mehdi; Prado, Melissa P.This paper examines how Socially Responsible Investment (SRI) capital affects the environmental footprint of multinational enterprises. We exploit the inverse relationship between local pollution and high-frequency-and-precision satellite-based measurements of vegetation health, captured through the normalized difference vegetation index (NDVI). Combining NDVI with SRI ownership data for 52,806 facilities belonging to 911 multinationals in 124 countries between 2006 and 2020 allows us to leverage both cross-sectional and within-facility variation in SRI exposure over time. We find that, on average, greater SRI ownership is associated with improved vegetation health in surrounding areas, consistent with reductions in firm-induced environmental damage. Using mergers as a plausibly exogenous source of variation in SRI ownership corroborates these findings. However, exploiting the global structure of multinational production networks, we find a striking asymmetry: improvements near facilities located in OECD countries coincide with deterioration near the same firms’ facilities in non-OECD countries, consistent with pollution offshoring. Finally, we show that this asymmetry intensifies with more active investor oversight, suggesting that investor engagement alone is insufficient to mitigate environmental harm in the absence of strong domestic regulation or global coordinated monitoring.
- Trading choicesPublication . Dyskant, Lucas B.; Silva, André C.; Sultanum, BrunoWe propose a model of over-the-counter markets based on three trading methods: principal inventory, agency risk-free, and all-to-all (A2A) trading. Principal and agency trading occur through dealers. A2A trading occurs directly through customer-customer trading. The model predicts that A2A size can remain stable while principal and agency trading change. Higher inventory costs shifts trading from principal to agency and decrease dealers’ net positions. Bid-ask spreads can decrease even though transaction costs increase. High transaction costs can lead to multiple equilibria. The model shows how regulatory and technological changes affect trading choices, stability, and market indicators.
- Shopping missions in online grocery shoppingPublication . Pocsay, Marc Enrico; Han, Qiwei; Kaiser, Maximilian; NOVA School of Business and Economics (NOVA SBE)This study introduces a novel mission-based model for segmenting consumers in the online grocery market, leveraging extensive transaction data from a leading U.S. supermarket chain. Utilizing BERTopic modeling, we analyze shopping basket compositions to identify distinct consumer shopping missions. Our methodology uncovers fifteen unique missions, each reflecting specific consumer preferences and behaviors. These range from "Versatile Kitchen Staples" to "Health and Self-Care," highlighting diverse shopping strategies. The findings reveal dynamic shifts in consumer behavior during the COVID-19 pandemic and suggest targeted marketing strategies that can enhance customer engagement.