Showing 1 - 6 of 6
This paper analyzes the formation of Research Corporations as an alternative governance structure for performing R&D compared to pursuing in-house R&D projects. Research Corporations are private for-profit research centers that bring together several firms with similar research goals. In a...
Persistent link: https://www.econbiz.de/10005707949
This paper characterizes the relationship between entrepreneurial wealth and aggregate investment under adverse selection. Its main finding is that such a relationship need not be monotonic. In particular, three results emerge from the analysis: (i) pooling equilibria, in which investment is...
Persistent link: https://www.econbiz.de/10005827444
Do the contests with the largest prizes attract the most able contestants? To what extent do contestants avoid competition? In this paper, we show, theoretically and empirically, that the distribution of abilities plays a crucial role in determining contest choice. Sorting exists only when the...
Persistent link: https://www.econbiz.de/10009493738
We analyze a standard environment of adverse selection in credit markets. In our environment, entrepreneurs who are privately informed about the quality of their projects need to borrow in order to invest. Conventional wisdom says that, in this class of economies, the competitive equilibrium is...
Persistent link: https://www.econbiz.de/10008788752
We analyze a standard environment of adverse selection in credit markets. In our environment, entrepreneurs who are privately informed about the quality of their projects need to borrow from banks. Conventional wisdom says that, in this class of economies, the competitive equilibrium is...
Persistent link: https://www.econbiz.de/10004969343
We analyse credit market equilibrium when banks screen loan applicants. When banks have a convex cost function of screening, a pure strategy equilibrium exists where banks optimally set interest rates at the same level as their competitors. This result complements Broecker’s (1990) analysis,...
Persistent link: https://www.econbiz.de/10005772155