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We analyze corporate fraud in a model in which managers have superior information but are biased against liquidation, because of their private benefits from empire building. This may induce them to misreport information and even bribe auditors when liquidation would be value-increasing. To curb...
Persistent link: https://www.econbiz.de/10012719439
This paper analyses the sources of buyer power and its expect on sellers investment. We show that a retailer extracts a larger surplus from the negotiation with an upstream manufacturer the more it is essential to the creation of total surplus. In turn, this depends on the rivalry between...
Persistent link: https://www.econbiz.de/10012714613
When firms' research can lead to potentially harmful innovations, public intervention may thwart their incentives to undertake research by reducing its expected profitability (average deterrence) and may guide the use of innovation (marginal deterrence). We compare four policy regimes: laissez...
Persistent link: https://www.econbiz.de/10010577635
We analyze optimal policy design when firms' research activity may lead to socially harmful innovations. Public intervention, affecting the expected pro?tability of innovation, may both thwart the incentives to undertake research (average deterrence) and guide the use to which innovation is put...
Persistent link: https://www.econbiz.de/10005041809
We model an enforcement problem where firms can take a known and lawful action or seek a profitable innovation that may enhance or reduce welfare. The legislator sets fines calibrated to the harmfulness of unlawful actions. The range of fines defines norm flexibility. Expected sanctions guide...
Persistent link: https://www.econbiz.de/10005041913
We analyze optimal policy design when firms' research activity may lead to socially harmful innovations. Public intervention, affecting the expected profitability of innovation, may both thwart the incentives to undertake research (average deterrence) and guide the use to which innovation is put...
Persistent link: https://www.econbiz.de/10005000438
When firms' research can lead to potentially harmful innovations, public intervention may thwart their incentives to undertake research by reducing its expected profitability (average deterrence) and may guide the use of innovation (marginal deterrence). We compare four policy regimes: laissez...
Persistent link: https://www.econbiz.de/10009023616
Persistent link: https://www.econbiz.de/10008997478
In this chapter, we review some recent work on public intervention in economic environments where firms undertake investments in research or in physical assets, and then select appropriate business practices to extract profits from the outcomes of the investment process. Public policies may take...
Persistent link: https://www.econbiz.de/10011122730
In this paper we review some recent work on public intervention in economic environments where ?firms undertake investments in research or in physical assets, and then choose appropriate business practices to extract pro?ts from the outcomes of the investment process. Public policies may take...
Persistent link: https://www.econbiz.de/10010734596