Whether a firm is able to attract foreign capital and whether it may participate at the export market depends on whether the fixed costs associated with doing so are at least covered by the incremental operating profits. This paper provides evidence that success for some firms in attracting...

We show that joint ownership (partnership or joint venture) can implement first best in a twice-repeated game when each agent believes that the other party is honest with a very small probability. In the final period the ownership structure is renegotiated because joint ownership is ex post...

It is well-known that a seller imposed non-discrimination clause can soften downstream price competition by constraining opportunistic pricing behavior on the part of an upstream monopolist seller. But what about about market settings in which there exists a pivotal buyer? We show that in the...

Grossman and Hart’s prominent 1986 article on “The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration” focuses, as its title suggests, on which of a firm’s input suppliers are, or are not, efficiently owned by the firm. This brief essay, prepared for a...