In 1980 three Finnish companies established a research joint venture as a separate firm in order to develop semiconductors. This enterprise terminated in 1992 when the firm was sold. We study the RJV from the point of view of incomplete contacts, focusing on hold-up problems. Of particular...

This paper studies how comparing can be used to provide information in financial markets in the presence of a hidden characteristics problem. Although an investor cannot precisely estimate the future returns of an entrepreneur’s projects, the investor can mitigate the asymmetric information...

The paper studies two market structures and two modes of trade. The agents, buyers and sellers, can choose whether to stay or search. The meetings take place randomly, and trades are consummated by auction or by bargaining. There are altogether four possible markets but in equilibrium at most...

In 1980 three Finnish companies established a research joint venture in order to develop semiconductors. The project was initiated when a de facto standard was on the verge of tumbling down, and it was terminated when a new standard emerged. We study the RJV in the light of the contract theory,...

In 1980 three Finnish companies established a research joint venture as a separate firm in order to develop semiconductors. We study the initial stages of the project focusing on the two evident sources of difficulty associated with an international technology transfer. One is a hold-up problem...

We argue that a patent system makes collusion among innovators more difficult. Our simple argument is based on two properties of the patent system. First, a patent not only protects against infringement but also against retaliation by former collusion members. Second, a deviator has an equal...