A concept of coordination costs is incorporated into a nonlinear variant of the model studied by Freixas, Guesnerie, and Tirole (1985) on the dynamic regulation of a firm with adverse selection and no commitment (the ratchet effect). Greater coordination costs give rise to two opposing effects....

This research examines the relative strength and significance of the status of "incumbent contractor" in federal computer procurement. One finding, as expected, is that an agency is likely to acquire a system from an incumbent vendor. Another finding, perhaps more interesting, is that the...

This article investigates how information asymmetries affect the organization of markets in which sellers are also experts who determine customers' needs. It examines how customers' search for multiple opinions and reputation considerations each play a role in disciplining experts. It shows that...

In this article we demonstrate how a long duration of patents affects investment in new product development. We construct an overlapping-generations model of saving, investment, and product innovation and show that a long duration of patents results in a high aggregate value of monopoly firms...

Modern cropshare contracts are explained using a model in which agents are risk neutral and contract rules are chosen to maximize expected joint wealth. It is shown that the farmer either bears the entire cost of inputs or shares the costs with the landowner in the same proportion as the output....

Examination of aircraft engine histories provided by Pratt & Whitney, Inc., indicates a significant increase in the number of engine hours between major overhauls in the period following deregulation. Parametric analysis of times between overhauls, which controls for other variables affecting...