An entrepreneur can organize either a for-profit or a non-profit firm to sell product or service to consumers in the long run. Because quality is non-verifiable and unobservable investment can still produce low quality, in equilibrium, consumers impose relational sanctions when low quality is...

The paper reconsiders an old question in law and economics: will firms prefer to rely on legal sanctions or market sanctions as a means of committing to provide high quality goods? In the model, legal sanctions are expensive to deploy because of litigation costs, whereas market sanctions are...

Defenders of the odious debt doctrine, which bars creditors from collecting sovereign debts that financed the personal consumption of former dictators, argue that this rule would benefit populations following dictatorships and discourage would-be dictators from staging coups in the first place....