We develop a theory of conversations. Two agents with different interests take turns choosing the topic of the conversation. Talking about a single topic allows them to delve deeper, making the conversation more informative (or enjoyable). To capture this dynamic, we assume that the marginal...

We develop a theory of conversations. Two agents with different interests take turns choosing the topic of the conversation. Talking about a single topic allows them to delve deeper, making the conversation more informative (or enjoyable). To capture this dynamic, we assume that the marginal...

We develop a theory of conversations. Two agents with different interests take turns choosing the topic of the conversation. Talking about a single topic allows to delve deeper, making the conversation more informative (or enjoyable). To capture this, we assume that the marginal utility from...

We present a model that helps explain why only few blockholders seek board representation despite little direct costs. In the model, inefficiently few blockholders take a board seat because it signals adverse information to outside investors, lowering trading profits. However, once taken, board...

According to existing theories, short-term creditors promote corporate governance by responding quickly to new information. I show that this very feature of short-term debt can also hurt corporate governance, as it can undermine information revelation in financial markets. In particular,...

In a canonical takeover model we let an informed large shareholder choose between making a bid or initiating a sale to another acquirer. Such takeover activism complements direct takeovers because the very choice mitigates the asymmetric information problem, thereby improving efficiency. As more...

We provide a novel intuition for why manufacturers restrict their retailers' ability to resell brand products online. Our approach builds on models of salience‐driven attention according to which price disparities across distribution channels guide a consumer's attention toward prices and...

We develop a model of digital ecosystems based on the assumption that a multimarket firm can use a sale in or data from one market to steer users toward its products in other markets. Due to this "cross-market leverage," a market leader at an "access point" (where users begin their online...