Most analysis of market power assumes that managers are perfect agents for shareholders. This paper relaxes that assumption. When managers of a multiproduct firm exert unobservable effort to improve product quality, price coordination incentives tradeoff with effort incentives. This makes some...

Is the second best outcome of static agency models renegotiation proof? In models with one period of renegotiation, Fudenberg and Tirole (1990) answer no when the principal makes the offer, while Ma (1994) and Matthews (1995) answer yes when the agent makes the offer. This paper analyzes the...

Effective antitrust relies on its institutions. We offer a brief retrospective of sudden and significant change at one of the antitrust institutions in the United States – the Federal Trade Commission (FTC) under the Biden administration. Changes under Chair Lina Khan have been more dramatic...