We study the effects of antitrust policy in industries with continual innovation. A more protective antitrust policy may have conflicting effects on innovation incentives, raising the profits of new entrants, but lowering those of continuing incumbents. We show that the direction of the net...

This paper analyzes simultaneous ascending auctions of two different items, viewed as complements by multi-item bidders. The finding is that such auctions overly concentrate the goods to a multi-item bidder and never overly diffuse them to single-item bidders. The main reason is that some...

We explore the optimal delegation of decision rights by a principal to a better informed but biased agent. In an infinitely repeated game a long-lived principal faces a series of short-lived agents. Every period they play a cheap talk game ala Crawford and Sobel (1982) with constant bias,...

Many partnership contracts (and other joint-venture agreements) include so-called "Texas Shootout Clausesʺ to govern future breakups. In a Texas Shootout, one partner names a single buy-sell price and the other partner has the option to buy or sell at that price. While the prior literature has...

In this review article I place industrial economics at the center of the explanation for the geographic properties of Internet infrastructure, applying this established mode of analysis to the unique cost structures and demand characteristics of these markets. I begin with an overview of the...

A major shortcoming of the growing empirical work on asymmetric information is the inability to separately identify moral hazard from adverse selection. Abbring et. al. (2003) point out that dynamic insurance data can help here, by asking whether consumers have fewer claims when they are at a...

The information that is created and disseminated through the litigation process can have social value. When economic agents learn about risks, they can fine-tune their future behaviors to mitigate these risks. Specifically, suppose that an injured plaintiff sues a defendant for damages sustained...

This paper investigates whether manufacturers should be liable if consumers, through the use of a product, cause harm to others. If consumers have deep pockets then consumeronly liability is socially desirable. With consumer insolvency, however, consumer-only liability leads to inadequate...

We study the e.ects of antitrust policy in industries with continual innovation. A more protective antitrust policy may have conflicting e.ects on innovation incentives, raising the profits of new entrants, but lowering those of continuing incumbents. We show that the direction of the net e.ect...

In both corporate finance and asset pricing empirical work, researchers are often confronted with panel data. In these data sets the residuals may be correlated across firms and across time, and OLS standard errors can be biased. Historically, the two literatures have used different solutions to...