We analyze 582 R&D agreements between Air Force agencies and outside partners. Agencies choose partners and contractual terms consistent with predictions from a rational model, which suggests that they could be incentive efficient from an ex ante perspective

Capacity constraints limit the profits of some investment strategies, while other strategies are more scalable. We develop a dollar-weighted return measure that parses the factor timing by investors and a strategy's capacity constraints. We find that actively managed funds exhibit significant...