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Transaction costs and the robustness of the Coase Theorem

Anderlini, Luca; Felli, Leonardo - London School of Economics (LSE) - 2000

This paper explores the extent to which the presence of ex-ante transaction costs may lead to failures of the Coase Theorem. In particular we identify and investigate the basic ‘hold-up problem’ which arises whenever the parties to a Coasian negotiation have to pay some ex-ante costs for the...

Persistent link: https://www.econbiz.de/10010745037

Costly coasian contracts

Anderlini, Luca; Felli, Leonardo - London School of Economics (LSE) - 1998

We identify and investigate the basic ‘hold-up problem’ which arises whenever each party to a contract has to pay some ex-ante cost for the contract to become feasible. We then proceed to show that, under plausible circumstances, a ‘contractual solution’ to this hold-up problem is not...

Persistent link: https://www.econbiz.de/10010745370

Evolution of decision and control rights in venture capital contracts: an empirical analysis

Bienz, Carsten; Walz, Uwe - London School of Economics (LSE) - 2006

We analyze the structure and evolution of the allocation of decision and control rights in venture capital contracts by using a sample of 464 contracts between venture capitalists (VC) and portfolio firms from Germany. We focus on the evolution of control and decisions rights along three time...

Persistent link: https://www.econbiz.de/10010745436

Economic policy when models disagree

Barrieu, Pauline; Desgagne, Bernard Sinclair - London School of Economics (LSE) - 2009

This paper proposes a general way to conceive public policy when there is no consensual account of the situation of interest. The approach builds on an extension and dual formulation of the traditional theory of economic policy. It does not need a representative policymaker’s utility function...

Persistent link: https://www.econbiz.de/10010745638

Strategic financial innovation in segmented markets

Rahi, Rohit; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2004

We study an equilibrium model with restricted investor participation in which strategic arbitrageurs reap profits by exploiting mispricings across different trading locations. We edogonize the asset structure as the outcome of the security design game played by the arbitrageurs. The equilibrium...

Persistent link: https://www.econbiz.de/10010745660

Uncertainty and leveraged Lucas Trees: the cross section of equilibrium volatility risk premia

Vedolin, Andrea - London School of Economics (LSE) - 2012

traditional risk factors. I then test the model predictions and find that empirical proxies for investors’ uncertainty about …Volatility risk premia compensate agents for holding assets whose payoffs correlate with times of high return variation …. This paper takes a structural approach to explain the cross-section of volatility risk premia of stocks using a Lucas …

Persistent link: https://www.econbiz.de/10010745732

Value of information in competitive economies with incomplete markets

Gottardi, Piero; Rahi, Rohit - London School of Economics (LSE) - 2007

A substantial literature addresses the negative eect on welfare of the release of information in a competitive market economy. We show that the value of information in this setting is typically positive if asset markets are suciently incomplete. More specically, for any competitive equilibrium...

Persistent link: https://www.econbiz.de/10010746178

The dynamics of venture capital contracts

Bienz, Carsten; Hirsch, Julia - London School of Economics (LSE) - 2005

We analyze the degree of contract completeness with respect to staging of venture capital investments using a hand-collected German data set of contract data from 464 rounds into 290 entrepreneurial firms. We distinguish three forms of staging (pure milestone financing, pure round financing and...

Persistent link: https://www.econbiz.de/10010746202

Emergency purchasing situations: implications for consumer decision-making

Samson, Alain; Voyer, Benjamin G. - London School of Economics (LSE) - 2014

further account for purchase involvement in the form of product importance, purchase risk, and product substitutability …

Persistent link: https://www.econbiz.de/10011126285

Knowledge-based economic development: mass media and the weightless economy

Bandyopadhyay, Sanghamitra - London School of Economics (LSE) - 2005

This paper examines the impact of mass media and information and commu- nications technologies (ICT) as knowledge-based infrastructures on economic development. The results suggest that both mass media and ICT penetra- tion are negatively associated with corruption. This result holds across both...

Persistent link: https://www.econbiz.de/10011071188