Tulli, Vanda; Weinrich, Gerd - In: Decisions in Economics and Finance 38 (2015) 1, pp. 93-118
<Para ID="Par1">In the present paper uncertainty over the market price of a risk-neutral competitive firm’s output and limited liability imply the possibility of bankruptcy, give rise to moral hazard and entail that the firm’s output decision depends on its equity holding. Subjecting the firm to a...</para>
